Fannie Prices Benchmark Notes Offerings

Fannie Mae has priced a new issue of 2.50% two-year Benchmark Notes maturing April 9, 2010 and a new issue of 3.25% five-year Benchmark Notes maturing April 9, 2013, each $3 billion in size. The two-year issue (CUSIP 31398AMV1) was priced at 99.750 with a 2.620% yield at a spread of 68.5 basis points over the 2.125% Treasury bill due Jan. 31, 2010. The five-year issue (CUSIP 31398AMW9) was priced at 99.527 with a 3.351% yield at a spread of 72 basis points over the 2.875% Treasury bill due Jan. 31, 2013. The joint lead managers for the two-year offering are Deutsche Bank Securities Inc., Lehman Brothers Inc. and Morgan Stanley & Co. and the joint lead managers for the five-year offering are Citigroup Global Markets Inc., Merrill Lynch Government Securities, and J.P. Morgan Securities Inc. Both issues are slated to be listed on the EuroMTF market of the Luxembourg Stock Exchange, settle Feb. 7 and have payment dates on April 9 and Oct. 9 starting this April.