Fannie Mae's new five-year deal is expected to be $9 billion in size, people familiar with the deal said.

The note is to be sold later Thursday and garnered orders worth $10 billion by late Wednesday, according to Andrew Brenner at MF Global Inc.

On Wednesday, price talk on the deal was at 91 basis points over comparable Treasury yields.

Last month, Fannie sold a $7 billion five-year issue. That issue sold at 93 basis points over Treasurys.

Market observers had said they would watch with interest how much response the new Fannie 5-year issue generated.

"If this issue gets to $5 billion with a solid book, then the next new issue concession can be several [basis points] tighter," said Jim Vogel of FTN in a note Wednesday.

 
   -By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com

(Prabha Natarajan contributed to this report)