Fannie Mae prices $3 bln 2-year benchmark notes

NEW YORK, July 9 (Reuters) - Fannie Mae (FNM.N: Quote, Profile, Research), the biggest funder of U.S. mortgages, said on Wednesday it priced $3 billion of two-year benchmark notes at a yield spread of 74 basis points over comparable Treasuries due 06/30/2010.

The notes, which carry a coupon rate of 3.250 percent, will settle on July 11, the Washington-based company said in a statement.

Banc of America Securities LLC, Merrill Lynch and J.P. Morgan Securities were the deal's joint lead managers. Barclays Capital, Deutsche Bank Securities, FTN Financial, Goldman Sachs, HSBC Securities USA, Lehman Brothers, UBS Securities were among the co-managers. (Reporting by Richard Leong; Editing by Theodore d'Afflisio)