Freddie Mac bill sale: rates rise, demand is mixed

NEW YORK, May 17 (BestGrowthStock) – Freddie Mac (FRE.N: ) (FRE.P: )
said on Monday that it sold $2.5 billion of bills at higher
rates but with mixed demand compared with the most recent sales
of similar maturities.

Freddie Mac said it sold $500 million of one-month bills,
due June 14, 2010, at a stop-out rate, or lowest accepted rate,
of 0.144 percent, up from 0.125 percent for its $1.0 billion of
one-month bills sold April 26.

The agency also sold $1.0 billion of three-month due Aug.
16, 2010 at a 0.180 percent rate, up from a 0.168 percent rate
at last week’s sale of $1.0 billion of bills.

It also sold $1.0 billion of six-month bills, due Nov. 15,
2010, at a 0.282 percent rate, up compared with a 0.277 percent
rate for its $1.0 billion bills auctioned last week.

Demand for one-month bills was stronger with a bid-to-cover
ratio of 5.05 versus 4.42 for the same maturity sold April 26.

Demand for three-month bills was also stronger with a
bid-to-cover ratio of 4.25 compared with 4.10 for the May 10
issue, while demand for the six-month bills was weaker at a
4.10 ratio versus 4.12 for last week’s sale.

Settlement for bills sold this week is May 19-20.

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

Stock Market Money

(Reporting by Caryn Trokie; Editing by James Dalgleish)

Freddie Mac bill sale: rates rise, demand is mixed