Fannie Mae sells $2 bln bills at lower rates

NEW YORK, July 28 (Reuters) - Fannie Mae (FNMA.OB), the largest U.S. home funding source, on Wednesday said it sold $2 billion of benchmark bills at lower interest rates compared with last week's sale of similar maturities.

Fannie Mae said it sold $1 billion of three-month bills, due Oct. 27, 2010, at a 0.173 percent stop-out rate, or lowest accepted rate, down from 0.181 percent for its $2 billion bills auctioned on July 21.

The agency also sold $1 billion of six-month bills due Jan. 26, 2011, at a 0.240 percent stop-out rate, down from a 0.243 percent rate for its $2 billion six-month bills sold a week ago.

The three-month bills were priced at 99.956 with a money market yield of 0.173 percent, and the six-month bills were priced at 99.879 with a money market yield of 0.240 percent.

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