U.S. Markets open in 5 hrs 32 mins

Fannie Mae sells $1.5 billion bills at higher rates

FILE PHOTO: A view shows the Fannie Mae logo at its headquarters in Washington March 30, 2012. REUTERS/Jonathan Ernst

(Reuters) - Fannie Mae , the largest U.S. home funding source, said on Wednesday it sold $1.5 billion of benchmark bills at higher interest rates compared with last week's sale of similar maturities.

Fannie Mae said it sold $750 million of 1 million bills due June 13, 2018 at a 1.670 percent stop-out rate, or lowest accepted rate, up from the 1.660 percent rate for $250 million of 1 million bills sold on May 9.

The company also sold $750 million of three-month bills due Aug. 15, 2018 at a 1.890 percent rate, also up from the 1.840 percent rate for $250 million of three-month bills sold last week.

The 1 million bills were priced at 99.870 with a money market yield of 1.672 percent. The three-month bills were priced at 99.522 with a money market yield of 1.899 percent. Settlement is May 16-17.

(U.S. Treasury desk)