8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 8, 2006

FEDERAL HOME LOAN BANK OF BOSTON(Exact name of registrant as specified in its charter)

Federally chartered corporation	000-51402	04-6002575
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

111 Huntington Avenue
Boston, MA 02199
(Address of principal executive offices, including zip code)

(617) 292-9600
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01Regulation FD Disclosure

On August 8, 2006, Michael A. Jessee, president and chief executive officer of the Federal Home Loan Bank of Boston (the Bank), sent a letter to members of the Bank announcing that the Bank’s board of directors has approved a dividend based on a yield of 5.50 percent accrued over a 183-day period. A copy of the letter is attached to this report. The information contained in the attachment is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01Financial Statements and Exhibits

(c) Exhibits

Exhibit Number

99.1 Letter, dated August 8, 2006, issued by the Bank.

Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Federal Home Loan Bank of Boston
Date: August 8, 2006	By:	/s/  Earl W. Baucom
		Earl W. Baucom First Vice President and Chief Accounting Officer

EX-99.1

Exhibit 99.1

DIVIDEND UPDATE

August 8, 2006

TO:  All Members

On August 3, 2006, the board of directors of the Federal Home Loan Bank of Boston (the Bank) approved a dividend based on a yield of 5.50 percent. This dividend yield will be applied to the average daily balance of Class B shares held during the period April 1, 2006, through June 30, 2006. However, as discussed in our May 19, 2006, letter (available at www.fhlbboston.com) regarding the Bank’s dividend schedule transition plan, a day-count factor of 183 days will be applied to reconcile the fact that the Bank did not declare a dividend during the second quarter of 2006. Accordingly, the dividend that will be credited to your institution’s IDEAL Way account on September 5, 2006, will be calculated as follows:

Dividend = Average Class B Stock Balance*  x  5.50%  x  (183/365)

*Average Class B Stock Balance = Average Daily Balance of Class B Stock invested during the period April 1, 2006, through June 30, 2006.

The next scheduled quarterly dividend will be considered by the board of directors at its November 2006 meeting, and will be paid using a day-count accrual factor of 92/365, which reflects the number of days in the third quarter of 2006. This dividend is scheduled to be paid on December 4, 2006.

By the end of 2006, the Bank will have declared dividends based on a day-count accrual of a full 365 days as follows:

	90 days for the dividend paid on April 4, 2006
+	183 days for the dividend paid on September 5, 2006
+	92 days for the dividend scheduled to be paid on December 4, 2006
	365 days total for 2006

We appreciate your patience as we complete our dividend schedule transition plan. Thereafter, the Bank will declare dividends only after period earnings have been calculated to ensure that the Bank’s retained earnings target is met at all times.

Should you have any further questions about the Bank’s dividend policies and practices, please feel free to call Frank Nitkiewicz, executive vice president and chief financial officer, at 617-292-9624, or Earl Baucom, first vice president and chief accounting officer, at 617-292-9789.

Sincerely,

Michael A. Jessee
President and Chief Executive Officer