Fannie mae sells $3 bln 2-year benchmark notes

NEW YORK Dec 3 (Reuters) - Fannie Mae FNM.N FNM.P, the largest U.S. home funding company, on Thursday sold $3 billion of new two-year benchmark notes, said a market source familiar with the sale.

The 0.875 percent notes will mature on Jan. 12, 2012 and were priced at 99.790 to yield 0.976 percent, 25 basis points over comparable U.S. Treasuries, the source added.

Joint lead managers were Citigroup, JP Morgan and Morgan Stanley. (Reporting by Caryn Trokie; Editing by James Dalgleish) ((caryn.trokie@thomsonreuters.com; Tel: +1 646-223-6318; Reuters Messaging: caryn.trokie.reuters.com@reuters.net))