2008-08-19wsj.com

Investors took Freddie Mac's sales of $3 billion five-year reference notes positively as foreign investors still showed up to bid on the auction even amid renewed worries over the viability of the federally chartered Fannie Mae and Freddie Mac. Financial weekly Barron's this week reported that a U.S. government bailout of the two mortgage-finance giants is increasingly likely.

Freddie Mac had to jack up yields to entice investors, however. It sold the notes at 113 basis points over comparable Treasurys, the highest premium it has ever offered for a five-year note. The notes yielded 4.172% at sale.



Comments: Be the first to add a comment

add a comment | go to forum thread