Freddie Mac sells $2 billion bills at lower rates, higher demand
(Reuters) - Freddie Mac FMCC.OB, the No. 2 U.S. home funding company, said on Monday it sold $2 billion of reference bills at lower rates and stronger demand compared with last week's sale of similar maturities.
Freddie Mac said it sold $1 billion of three-month bills due December 17, 2012 at a 0.125 percent stop-out rate, down from the 0.134 percent rate for its $1.5 billion three-month bills sold September 10.
The company sold $1 billion of six-month bills due March 18, 2013 at a 0.152 percent rate, down from the 0.155 percent rate for $1.5 billion six-month bills sold a week ago.
Demand for the three-month bills was higher, with the bid-to-cover ratio at 5.08 versus 4.11 for the three-month bills sold September 10, and demand for the six-month bills was also higher, at 5.10 vs 4.08 for six-month bills sold a week ago.
A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A higher ratio indicates stronger demand.
Settlement is Sept 18.
(Reporting by Pam Niimi; Editing by Chizu Nomiyama)
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