Fannie Mae sells $2 billion in bills at lower rates

NEW YORK Wed Aug 31, 2011 9:57am EDT

NEW YORK Aug 31 (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 sales of similar maturities.

Fannie Mae said it sold $1 billion of three-month bills, due Nov. 30, 2011, at a 0.025 percent stop-out rate, or lowest accepted rate, down from a 0.035 percent rate for last week's sale of $1 billion three-month bills.

The agency also sold $1 billion of six-month bills due Feb. 29, 2012, at a 0.094 percent stop-out rate, also down from a 0.115 percent rate for $1 billion of six-month bills sold a week ago.

The three-month bills were priced at 99.994 with a money market yield of 0.025 percent, and the six-month bills were priced at 99.952 with a money market yield of 0.094 percent.

Settlement is Sept. 1-2. (Reporting by Caryn Trokie; Editing by James Dalgleish)