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General Motors unit sells $2.5 bln bonds

NEW YORK, Aug 22 (Reuters) - General Motors Corp.'s finance arm on Thursday sold $2.5 billion of bonds, 25 percent more than planned, an official for co-lead manager Banc of America Securities LLC said.

Nearly record-low U.S. Treasury yields helped General Motors Acceptance Corp., part of the world's largest automaker, offer roughly the same yields on its five- and 10-year notes as it paid out in a similar January sale, even though auto bonds have since lagged. GMAC benefited from yield-hungry investors confident that a U.S. economic recovery is on track.

GMAC sold $1 billion of 6.125 percent five-year notes at 99.712 cents on the dollar to yield 6.193 percent, or 2.8 percentage points higher than similar maturity U.S. Treasuries. It also sold $1.5 billion, up from $1 billion, of 6.875 percent 10-year notes at 99.332 cents on the dollar to yield 6.969 percent, or 2.65 percentage points more than comparable Treasuries.

A spokesman for Detroit-based GM, Jerry Dubrowski, said GMAC plans to use proceeds for general corporate purposes.

Moody's Investors Service rates GMAC's senior debt "A2," its sixth highest investment grade. Standard & Poor's Ratings Services rates it "BBB-plus," two notches lower. J.P. Morgan, Salomon Smith Barney and UBS Warburg LLC also arranged the sale.