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) July 21, 2008

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 EmployerIdentification 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 7.01 Regulation FD Disclosure

      On July 21, 2008, the Federal Home Loan Bank of Boston sent a letter to members regarding the adoption of a revised retained earnings target range. 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 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit Number

99.1 Letter sent to members of the Federal Home Loan Bank of Boston on July 21, 2008.

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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:  July 21, 2008	By:	/s/ Frank Nitkiewicz
		Frank Nitkiewicz
		Executive Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

July 21, 2008

TO: All Members

The board of directors of the Federal Home Loan Bank of Boston (the Bank) has adopted a revised retained earnings target range of $375.0 million to $400.0 million to address the challenges presented by the continuing downturn in the housing market and volatility in the credit and capital markets. The previous targeted minimum retained earnings level was $213.0 million. This change is in keeping with our objective to preserve member stock par value stability in the face of such volatile markets.

The Bank’s retained earnings serve as the primary cushion against impairment of member stock par value. Through extensive risk modeling and analytics, we continuously review the Bank’s retained earnings target and make adjustments to respond to changing market dynamics. In effect, we work to protect the value of members’ stock investments in the Bank by insulating those investments vis-à-vis retained earnings.

As of March 31, 2008, the Bank had retained earnings of $232.5 million. Over the coming quarters, we will focus on growing retained earnings to achieve the new retained earnings target range. We expect the increased target will result in dividend yield spreads that will be somewhat narrower to short-term interest rates until the target range is achieved, though there can be no assurance of a specific dividend level. The retained earnings target range is, as always, subject to ongoing revision in response to changing market and credit conditions.

Our capital structure requires that we balance shareholders’ desire for an attractive return on investment with the complementary need to protect that investment from losses. We will remain vigilant in our effort to deliver value to you, our member shareholders, on both fronts.

Please do not hesitate to contact either Chief Financial Officer Frank Nitkiewicz (617-292-9624) or myself with any questions regarding the Bank’s retained earnings target.

Sincerely,

Michael A. Jessee

President and Chief Executive Officer