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Freddie Mac sells $2 billion in bills at lower rates


    (Reuters) - Freddie Mac , the No. 2 U.S. home funding company said on Tuesday 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 August 27, 2012 at a 0.104 percent stop-out rate, down from a 0.110 percent rate for its $1 billion three-month bills auctioned on May 21.

    The company also sold $1 billion of six-month bills due November 26, 2012 at a 0.154 percent rate, also down from a 0.156 percent rate for its $1 billion bills sold a week ago.

    Demand for the three-month bills was higher at 4.67 versus 4.30, and demand for the six-month bills was also higher at 4.53 versus 4.37 for its bills auctioned last week.

    A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A lower ratio indicates weaker demand.

    Settlement is May 30.

    (Reporting by Pam Niimi; Editing by James Dalgleish)