Freddie Mac sells $4 billion bills at rate

NEW YORK (BestGrowthStock) – Freddie Mac (FMCC.OB: ) on Monday said it sold $4.0 billion of bills at higher rates, while demand was mixed compared with the most recent sales of similar maturities.

Freddie Mac said it sold $2 billion of three-month bills, due March 21, 2011, at a stop-out rate of 0.160 percent, up from a 0.155 percent rate for last week’s sale of $2 billion of three-month bills.

Freddie Mac also sold $2 billion of six-month bills, due June 20, 2011 at a 0.220 percent rate, also up from a 0.210 percent rate for its sale of $2.0 billion of six-month bills sold on Dec 13.

Demand for the three-month bills was weaker with a bid-to-cover ratio of 3.60 versus 3.75 for the December 13 sale.

Demand for the six-month bills was stronger with a 3.12 ratio versus 3.06 for last week’s sale.

Settlement for bill sold this week is Dec 21.

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

(Reporting by Caryn Trokie, Editing by Chizu Nomiyama)

Freddie Mac sells $4 billion bills at rate