Fannie Mae on Wednesday said it sold $1 billion in bills at lower interest rates compared with sales of the same maturities a week ago.

Fannie Mae sold $500 million of three-month bills due September 2 at a stop-out or lowest accepted rate of 0.125 percent and $500 million of six-month bills due December 2, 2009 at a 0.248 percent stop-out rate.

The three-month bills were priced at 99.968 with a money market yield of 0.125 percent and the six-month bills were priced at 99.875 with a money market yield of 0.248 percent.

Settlement is May 20-21.

On May 27, Fannie Mae sold $1 billion of three-month bills at a stop-out rate of 0.170 percent and $1 billion of six-month bills at a rate of 0.293 percent.