Freddie Mac borrowed $4 billion Wednesday at a lower cost than in its last sale of similar debt, suggesting the recent expansion of capital backstops has bolstered investor confidence in the government-sponsored enterprises.

The offering was the first of benchmark debt by Freddie or Fannie Mae since the Treasury Department's Dec. 24 announcement that it would offer the GSEs unlimited capital for three years, up from as much as $200 billion each.

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