The current Fed Funds target rate of 4 percent is at its lowest point since 1993, when it reached 3 percent. With the short end of the yield curve being at its lowest in seven years, and with the possibility of it dropping even further, you could benefit from having a discounted adjustable rate advance with an option to extend the maturity of the advance at a fixed rate. Both advances have a one-year term with monthly or quarterly rate reset dates.
Advances are for a one-year term.
A notice of one business day prior to the maturity or rate reset date is required to exercise the extension option. Prepayment of the advances are subject to the FHLBank's normal fee calculation. Advances will be funded on the date the order is placed. Orders will be accepted June 4 through June 15. Normal underwriting and collateral requirements apply.