Freddie Mac's new two-year notes could top $3.5 billion; issue prices Tuesday

By Lisa Kerner

Charlotte, N.C., Oct. 19 - Freddie Mac announced it will price new two-year Reference Notes at benchmark size on Tuesday.

The notes will be due Dec. 15, 2011 and will be offered via a syndicate of dealers led by Goldman Sachs, Citigroup Global Markets Inc. and Morgan Stanley, according to a Freddie Mac news release.

Chris Denker, an agency trader with Loop Capital not directly involved in the deal, said talk had the issue at 26 basis points over the two-year Treasury and the issue size at $3 billion to $5 billion.

Another trader, Michael Skinner with Wall Street Access, heard that $3.5 billion was in the books. Skinner also heard price talk at a spread of 26 bps.

Vining Sparks' Brandon Wann called the deal a "blowout."

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