Fannie Mae and Freddie Mac on Wednesday sold a combined $3bn of short-term debt, helping to reassure stock markets that the two beleaguered US mortgage financiers could still fund their operations without a government rescue.

Fannie sold $2bn in three and six-month bills and Freddie sold $1bn of one-month paper with stronger-than-usual investor demand as buyers were attracted by higher interest rates. The sales helped to boost Fannie’s shares by 11.4 per cent in early trade, while Freddie was 13.6 per cent higher.