Freddie Mac sells $2.25 bln in bills at mixed rates

Reuters

Oct 28 (Reuters) - Freddie Mac, the No. 2 U.S.home funding company, on Monday said it sold $2.25 billion ofreference bills at mixed interest rates and mixed demandcompared with the most recent sales of similar maturities andcomparable amounts.

Freddie Mac sold $1 billion of three-month bills, dueJan. 27, 2014, at a 0.044 percent rate, down from the 0.050percent rate for $1 billion three-month bills sold Oct. 21.

The company sold $1 billion of six-month bills, dueApril 28, 2014, at a 0.093 percent rate, also down from the0.100 percent rate for $1 billion six-month bills auctioned aweek ago.

Records going back to 2000 on the Freddie Mac website do notshow a $250 million sale of one-month bills. A call to thecompany was not returned. The latest one-month bill sale is usedas comparison.

Freddie Mac sold $250 million of one-month bills at a0.010 percent rate vs a 0.005 percent rate for $500 million one-month bills sold Sept. 23.

Demand for the three-month bills was weaker, with abid-to-cover ratio of 4.15, down from the 5.03 ratio for thethree-month bills sold Oct. 21.

Demand for the six-month bills was also weaker at 3.37, downfrom the bid-to-cover ratio of 4.32 for the six-month bills soldlast week.

Demand for the one-month bills was 6.50 compared with the5.50 rate for the one-month bills sold Sept. 23.

A bid-to-cover ratio reflects the amount of bids comparedwith the amount offered. A higher ratio indicates strongerdemand.

Settlement is Oct. 29.

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