Fannie Mae sells $5 bln bills at lower rates

NEW YORK, April 13 (Reuters) - Fannie Mae (FNMA.OB), the largest U.S. home funding source, said on Wednesday it sold $5 billion of benchmark bills at lower interest rates compared with last week's sale of similar maturities.

Fannie Mae said it sold $2 billion of three-month bills, due July 13, 2011, at a 0.060 percent stop-out rate, or lowest accepted rate, down from 0.080 percent for last week's sale of $2 billion three-month bills.

The company also sold $3 billion of six-month bills due Oct. 12, 2011, at a 0.137 percent stop-out rate, also down from a 0.159 percent rate for last week's auction of $2 billion of six-month bills.

The three-month bills were priced at 99.985 with a money market yield of 0.060 percent.

The six-month bills were priced at 99.931 with a money market yield of 0.137 percent.

Settlement is April 13-14. (Reporting by Caryn Trokie; Editing by James Dalgleish)