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Fannie Mae sells $500 mln bills at lower rates

Oct 23 (Reuters) - Fannie Mae, the largest U.S. home funding source, said on Wednesday it sold $500 million of benchmark bills at lower interest rates compared with last week's sale of similar maturities.

Fannie Mae said it sold $250 million of three-month bills due Jan. 22, 2014 at a 0.040 percent stop-out rate, or lowest accepted rate, down from the 0.175 percent rate for $250 million of three-month bills sold Oct. 16.

The company sold $250 million of six-month bills due April 16, 2014 at a 0.085 percent rate, also down from the 0.189 percent rate for $250 million of six-month bills sold a week ago.

The three-month bills were priced at 99.990 with a money market yield of 0.040 percent. The six-month bills were priced at 99.957 with a money market yield of 0.085 percent.

Settlement is Oct. 23-24.