UPDATE 2-FHLB sells $3 bln 2-year global bonds

(Updates distribution figures)

NEW YORK, July 25 (Reuters) - The Federal Home Loan Bank System, the largest collective source of U.S. home funding, said on Friday it sold $3 billion in two-year global bonds.

The 3.375 percent bonds will mature on Aug. 13, 2010 and were priced at 99.868 to yield 3.442 percent or 78.5 basis points over U.S. Treasuries.

According to preliminary data, 40 percent of the issue was purchased in the U.S., other/unknown took 28 percent, Europe purchased 19 percent, while Asia bought 13 percent, FHLB said in a press release.

Later on Friday FHLB said that the other/unknown category all went to international investors, bringing total overseas investment to 60 percent, while U.S. buying stood at 40 percent.

Investment advisors/fund managers bought 32 percent of the issue, 23 percent went to central banks, 21 percent were purchased by other/unknown, insurance companies/pension funds took 12 percent, while state/local government purchased 7 percent.

The joint lead managers on the sale were Barclays Capital, JP Morgan and Merrill Lynch. (Reporting by Caryn Trokie; Editing by James Dalgleish)