Fannie Mae to sell $3 billion bills on Wednesday

NEW YORK (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz), the largest U.S. home funding company, said on Monday it plans to sell $2.0 billion of three-month benchmark bills due October 22, 2008, and $1.0 billion of six-month bills due January 21, 2009, 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, until 9:45 a.m EDT.

Settlement is July 23-24.

(Reporting by Caryn Trokie; Editing by Tom Hals)