Fannie Mae sells $4 bln bills at lower rates

NEW YORK, July 14 (Reuters) - Fannie Mae the largest U.S. home funding source, on Wednesday said it sold $4 billion of benchmark bills at lower interest rates compared with last week's auction of similar maturities.

Fannie Mae said it sold $2 billion of three-month bills due Oct. 13, 2010, at a 0.187 percent stop-out rate, or lowest accepted rate, down from 0.200 percent for its $2 billion bills auctioned on July 7.

The agency also sold $2 billion of six-month bills due Jan. 12, 2011, at a 0.255 percent stop-out rate, down from a 0.262 percent rate for its $2 billion six-month bills sold a week ago.

The three-month bills were priced at 99.953 with a money market yield of 0.187 percent, and the six-month bills were priced at 99.871 with a money market yield of 0.255 percent, according to Fannie Mae.

Settlement is July 14-15.

(Reporting by Caryn Trokie; Editing by Theodore d'Afflisio) Keywords: FANNIEMAE BILLS/SALE ([e-mail] ; + 1 646-223-6318; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.