Freddie Mac sells $2.5 bln bills at higher interest rates

Reuters

Oct 15 (Reuters) - Freddie Mac, the No. 2 U.S.home funding company, on Tuesday said it sold $2.5 billion ofreference bills at higher rates and mixed demand compared withthe most recent sales of similar maturities and comparableamounts.

Freddie Mac sold $1.0 billion of three-month bills, dueJan. 13, 2014, at a 0.150 percent rate, up from the 0.065 percent rate for $1.0 billion three-month bills sold Oct. 7.

The company sold $1.0 billion of six-month bills, dueApril 14, 2014, at a 0.173 percent rate, also up from the 0.099percent rate for $1.0 billion six-month bills auctioned a weekago.

Freddie Mac also sold $500 million of 12-month bills at a0.199 percent rate, up from the 0.145 percent rate for its $1.0billion of 12-month bills sold last week.

Demand for the three-month bills was weaker, with abid-to-cover ratio of 3.30 down from the 4.26 ratio for thethree-month bills sold Oct. 7.

Demand for the six-month bills was also weaker at 3.10, alsodown from the bid-to-cover ratio of 3.52 for the six-month billssold last week.

Demand for the 12-month bills was stronger at 4.05, up fromthe 3.35 ratio for the 12-month bills auctioned last week.

A bid-to-cover ratio reflects the amount of bids comparedwith the amount offered. A higher ratio indicates strongerdemand, while a lower ratio indicates weaker demand.

Settlement is Oct. 15-16.

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