Fannie Mae has sold $2 billion more 6% recallable debt, for which it says demand has been very strong.

Last week, for the third time, Fannie expanded a 10-year Benchmark note it had first offered in May.

The May total, $3 billion, was increased to $5 billion in July and $7 billion in August. Last week's reopening raised the figure to $9 billion.

A note's size note can be increased if the new supply does not reduce value for previous investors, said John W. The Losen, vice president for debt marketing in the treasurer's office at Fannie Mae. The issue will not be reopened again this year, the company said.

Fannie's noncallable issues help to fund its mortgage portfolio. The company's focus is on liquidity, Mr. The Losen said.

When the notes reach these larger sizes they can be used for various purposes, including investment, trading, and hedging, he added.

In the August reopening, demand came primarily from U.S. investors. Eighty percent of the distribution was them and about 16.5% to European investors, Mr. The Losen said.

Last week domestic distribution was down to about 66%, with European participation rising to 28.5%. A national holiday in China helped cut participation by Asian investors to 4%, Mr. The Losen said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.