Fannie sells $3 bln bills, rates up from week ago

NEW YORK, July 23 (Reuters) - Fannie Mae, the largest U.S. home funding source, sold $3 billion of short-term debt at higher interest rates than it did for the same amount of the same maturities a week earlier.

The company on Wednesday said it sold $2 billion of three-month benchmark bills due Oct. 22, 2008 at a stop-out rate, or lowest accepted rate of 2.620 percent and $1.0 billion of six-month bills due Jan. 21, 2009 at a 2.820 percent stop-out rate.

The three-month bills were priced at 99.338 and have a money market yield of 2.637 percent, while the six-month bills were priced at 98.574 and have a money market yield of 2.861 percent, according to Fannie Mae.

On July 16, Fannie Mae sold $2 billion of three-month bills at a 2.480 percent stop-out rate and $1.0 billion of six-month bills at a 2.680 percent stop-out rate.

Settlement for the new bills is July 23-24.

(Additional reporting by Lynn Adler)

(Reporting by Caryn Trokie; Editing by Theodore d'Afflisio)