Fannie Mae to sell $500 mln in bills on Wednesday

NEW YORK, July 6 (Reuters) - Fannie Mae (FNM.P), the largest U.S. home funding company, said on Monday it plans to sell $250 million of three-month benchmark bills due Oct. 7, 2009, and $250 million of six-month bills due Jan. 6, 2010, 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.

Settlement is July 8-9. (Reporting by Caryn Trokie; Editing by James Dalgleish)