Fannie Mae to sell $2 bln bills on Wednesday

NEW YORK, Oct 18 (Reuters) - Fannie Mae, the largest U.S. home funding company, said on Monday it plans to sell $1 billion of three-month benchmark bills due Jan 19, 2011, and $1 billion of six-month bills due April 20, 2011, on Wednesday in a Dutch auction.

In such uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

Bids will be accepted from authorized dealers from 9 a.m. EDT (1300 GMT) until 9:45 a.m. EDT.

Settlement is Oct. 20-21.

(Reporting by Pam Niimi; Editing by Chizu Nomiyama) Keywords: FANNIEMAE BILLS/ANNOUNCEMENT ([e-mail]; [phone]; 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.