Fannie Mae to sell $1 bln bills on Wednesday

May 21 (Reuters) - Fannie Mae, the largest U.S. home funding source, said on Monday it will sell $1.0 billion of bills on Wednesday.

The company will sell $500 million of three-month bills due Aug. 22, 2012, and $500 million of six-month bills due Nov. 21, 2012. The bills will be sold via 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 9:00 a.m. (1300 GMT) until 9:45 a.m. (1345 GMT).

Settlement is May 23-24. (Reporting by Caryn Trokie; Editing by James Dalgleish)