Fannie Mae to sell $2 bln in bills on Wednesday

NEW YORK, July 26 (Reuters) - Fannie Mae (FNMA.OB), the largest U.S. home funding company, said on Monday it plans to sell $1.0 billion of three-month benchmark bills due Oct. 27, 2010, and $1.0 billion of six-month bills due Jan. 26, 2011, on Wednesday in a Dutch auction.

In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

Bids will be accepted from authorized dealers from 9:00 a.m. (1300 GMT) until 9:45 a.m. (1345 GMT)

Settlement is July 28-29. (Reporting by Caryn Trokie; Editing by Theodore d'Afflisio)