Fannie Mae to sell $4.0 bln bills on Wednesday

NEW YORK, April 23 (Reuters) - Fannie Mae (FNM.N), the largest U.S. home funding company, on Monday said it plans to sell $2.5 billion of three-month benchmark bills due July 25, 2007, and $1.5 billion of six-month bills due Oct. 24, 2007, 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. EDT (1300 GMT), until 9:45 a.m. EDT (1345 GMT).

Settlement is April 25-26.