Current
Strategy as of 4th Quarter 2006
Maintain a $150 million target floor overnight investment balance.
Strategically invest all available funds in excess of the target overnight
investment balance, which
may include purchasing conventional Treasury securities within the zero- to
twelve-year maturity
sector, purchasing Treasury Inflation-Protected securities (TIPS) within the
two- to ten-year maturity
sector, and/or purchasing callable Treasury securities with final maturities
not to exceed twelve years,
subject to the following limitations:
- TIPS should not total more than $10.0 billion (adjusted par value) by
quarter end;
- Available-for-sale (AFS) securities should not total more than $8.8 billion
(par value) by quarter end; and
- All newly purchased AFS securities should have maturities of six years
or less.
Moreover, staff will strive
to maintain a $10 billion target floor primary reserve balance.
Strategy
Changes for 1st Quarter 2007
TIPS target limit increased from $8.8 billion to $8.7 billion.
AFS securities
target limit decreased from $9.4 billion to $8.8 billion.
