The second largest home mortgage company, Freddie Mac, has announced that it would be selling US$3.0 billion of reference bills come Monday.
The firm is planning to sell US$1.5 billion of ninety day bills that would fall due by Aug.5, 2013. The interest rate would be at 0.070%. This is lower than the 0.078% rate for previous offers dated April 8, 2013. There is also a US$1.5 billion of one hundred twenty day bills due Nov. 4, 2013 with a 0.100% rate.
The offers made by Freddie Mac are at mixed rates at higher demand compared to other sales conducted with comparable amounts and similar maturity dates.
The sale would be a Dutch auction held over the Internet. In this kind of uniform price auctions, winning bidders pay only the price of the lowest accepted bid instead of the actual price during a conventional multiple price auction.
The deadline for the submission of bids from authorized dealers would be 9:45 am EDT.
Join the Conversation