FHLBs Sell Five-Year Notes

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WALL STREET - (07/24/06) –The Federal Home Loan bankSystem said Friday it increased the size of a five-year globalnotes offering by a third to $4 billion, based on strong demand.The 5.375% notes, due Aug. 15, 2011, were priced at 99.886 to yield5.402%, or 39.5 basis points over Treasuries. Notes issued by theFHLBs are one of the few permissible investments for credit unions.Preliminary data shows that 53% of the notes were purchasedinternationally and 47% domestically.

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