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Auction Details: Reference Bills® Securities

Reference Bills® securities are sold weekly through a uniform price auction process. Bids are submitted via the Internet from a group of participating dealers. The following sections cover the details of Freddie Mac's 2015 Funding Calendar and auction distribution process.

Auction schedule: Reference Bills auctions will be optional each week.

Auctions will close at 9:45 a.m. ET on the scheduled dates. In the event of an intervening U.S. holiday on Monday, the auction will be held on the next available business day. All auction schedule changes due to holidays are clarified in the regular weekly announcements. Please see the 2015 Funding Calendar for specific auction dates.

Concession fees: Freddie Mac will pay its dealers a one basis point (bp) concession fee on all successful customer bids. The 1 bp concession is an annualized rate based on the award amount and will be reflected in the dealer's net proceeds.

Reopenings: Similar to U.S.Treasury bills, Reference Bills securities are re-opened when the remaining maturities of outstanding issues coincide with regular auctions of new, shorter maturity issues. These reopenings will produce larger issues of Reference Bills securities with greater potential liquidity.

Dealer group: Aiming to achieve widespread global distribution, Freddie Mac accepts orders through its participating dealer group.

Competitive and non-competitive orders: In order to accommodate investors of all sizes, Freddie Mac also accepts non-competitive customer orders. Non-competitive orders must be for at least $1,000 (and in $1,000 increments thereafter). Non-competitive orders may not exceed 20% of the total amount offered. All Reference Bills securities auctions provide for a maximum of 20% of the total offering to be awarded on a non-competitive basis. All competitive bids must be for a minimum of at least $1 million, and in $1 million increments thereafter.

Bid limits: To ensure broad-based distribution, Freddie Mac limits the volume awarded to any single participant, in the dealer group, to a maximum of 50% of the auctioned amount. Customer bids will be limited to 100% of the auctioned amount.

Discount notes program: Freddie Mac continues to post discount notes daily. Reverse inquiry discount note business, a highly popular aspect of Freddie Mac’s traditional discount note program, is encouraged. However, new discount notes are issued with target maturities that are not in conflict with the maturity dates of the Reference Bills securities program.

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