Fannie Mae to sell $6.5 billion bills

NEW YORK, July 9 (Reuters) - Fannie Mae (FNM.N), the largest U.S. home funding source, said on Wednesday it sold $3 billion of three-month benchmark bills due Oct. 8, 2008, $1.5 billion of six-month benchmark bills due Jan. 7, 2009 and $2 billion of one-year benchmark bills due July 2, 2009.

The three-month bills were sold at a stop-out rate or lowest accepted rate of 2.340 percent, were priced at 99.408 and have a money market yield of 2.354 percent.

The six-month bills were sold at a 2.540 percent stop-out rate, priced at 98.716 and have a money market yield of 2.573 percent and the one-year bills were sold at a 2.703 percent stop-out rate, priced at 97.312 and have a 2.778 money market yield.

Settlement is July 9-10. (U.S. Financial Markets Desk; Editing by Jan Paschal)