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
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
Available-for-sale (AFS) securities should not total more than $8.7 billion
(par value) by quarter end; and
All newly purchased AFS securities should have maturities of six years
Moreover, staff will strive
to maintain a $10 billion target floor primary reserve balance.
Changes for 2nd Quarter 2007
target limit decreased from $8.7 billion to $9.0 billion.
Strategy as of 1st Quarter 2007
Maintain a $30 million target floor overnight investment balance.
Strategically invest the remaining funds in the zero- to 12-month maturity sector.