Fannie Mae (FNM.N) (FNM.P), the largest U.S. home funding source, said on Wednesday it sold $2.0 billion in bills at lower interest rates than those seen in sales of the same maturities and sizes a week ago.

Fannie Mae sold $1.0 billion of three-month benchmark bills due Nov. 25, 2009 at a stop-out rate, or lowest accepted rate, of 0.158 percent, and $1.0 billion of six-month bills due Feb. 24, 2010 at a 0.255 percent stop-out rate.

The three-month bills were priced at 99.960 with a money market yield of 0.158 percent, while the six-month bills were priced at 99.871 and have a money market yield of 0.255 percent, according to Fannie Mae.

Settlement is Aug. 26-27.

On Aug. 19, Fannie Mae sold $1.0 billion of three-month bills at a 0.167 percent stop-out rate and $1.0 billion of six-month bills at a rate of 0.260 percent. (Reporting by Caryn Trokie, Editing by Chizu Nomiyama)