8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, 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)  January 3, 2007

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 of incorporation)	(Commission File Number)	(IRS Employer 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):

o Written 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)

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

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

Item 7.01Regulation FD Disclosure.

On January 3, 2007, President and Chief Executive Officer Michael A. Jessee sent a letter to members of the Federal Home Loan Bank of Boston (the Bank) regarding the status of a regulation proposed by the Finance Board relating to excess stock and retained earnings as well as announcements concerning the Bank’s board of directors. 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.

Exhibit No.	Description
99.1	Letter to members of the Federal Home Loan Bank of Boston, dated January 3, 2007.

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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:  January 3, 2007	By:	/s/ Earl W. Baucom
		Earl W. Baucom
		Senior Vice President and Chief Accounting Officer

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EX-99.1

Exhibit 99.1

January 3, 2007

TO:  Member CEOs

I am pleased to inform you that a proposal that would have mandated a significant increase in Federal Home Loan Bank (FHLBank) retained earnings and limited dividends to members has been tabled by the FHLBanks’ regulator, the Federal Housing Finance Board (Finance Board).

The Finance Board announced at its December 22, 2006, meeting that it would not adopt the retained earnings rule originally proposed on March 8, 2006. A previously issued advisory bulletin will continue to guide FHLBank retained earnings policies.

The tabled rule would have established a formula by which each FHLBank would have to meet a retained earnings minimum of $50 million plus one percent of non-advance assets. The proposal also would have restricted each FHLBank from paying dividends of more than 50 percent of net earnings until such time as an FHLBank attained its retained earnings minimum.

The Finance Board did adopt a final rule prohibiting FHLBanks from issuing excess stock greater than one percent of total assets by paying stock dividends or issuing new excess stock. The Federal Home Loan Bank of Boston (the Bank) currently does not hold excess stock greater than one percent of its assets and pays cash dividends rather than stock dividends. The rule also requires that the FHLBanks declare and pay dividends only out of known income. The Bank previously implemented this practice during the second and third quarters of 2006.

Board of Directors

At its December 22 meeting, the Finance Board also reappointed public interest directors currently serving on the FHLBank boards for one-year terms. The Bank’s two public interest directors, Joyce H. Errecart and James L. Taft Jr., have been reappointed for this additional one-year term commencing January 1, 2007. In addition, the Finance Board announced it would immediately begin a process for appointing individuals to the remaining public interest director vacancies.

Finally, the Bank received notice that Michael Edwards has announced his intention to retire from Citizens Bank, and therefore has declined his appointment to the Bank’s board of directors, which was to commence January 1. We will inform you when the board has made a new appointment to fill this seat.

Should you have any questions about these matters, please do not hesitate to contact me.

Sincerely,

Michael A. Jessee
President and Chief Executive Officer