Fannie Mae sold $3 billion of debt Tuesday, paying lower yields than government-guaranteed bank bonds and borrowing for less relative to benchmarks than the records set in its last sale.

The five-year benchmark notes were priced to yield 2.906%, or 121 basis points more than Treasuries of similar maturity. Last month the government-sponsored enterprise sold $1 billion of five-year notes at a record spread of about 132 basis points.

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