Hi McCard: What’s next on our agenda. [Hi picks up his glasses and looks at the agenda.] The ALCO report is next. What do you have to say Madison ?
 

Camera moves to Madison McCard.
 
Madison McCard:

There were no portfolio transactions for September to report. However, the Committee did approve purchasing a $1.6 million five-year structured note issued by the Federal Home Loan Bank, yielding approximately 6.60 percent. The purchase would be funded with proceeds received from $1.6 million in 37/8 percent U.S. Treasury securities maturing at the end of October.

These decisions were based on our review of market interest rates. During August, three-month to one-year U.S. Treasury yields increased as the Federal Reserve tightened monetary policy to cool the economic expansion. Analysts say the Federal Open Market Committee will once again raise short-term rates to combat inflation. The current yield curve suggests the market expects rates to increase in the future. Currently, long-term Treasury rates are higher than current bill rates by a wide margin.

 
Hi McCard: Thanks Maddy! Are there any questions? [Pause briefly.] If there are no questions, I move that the board affirm the actions of the committee for September.
 

Off camera Bill Williams seconds the motion.
 
Bill Williams: I second the motion.
 

Camera moves to Hi McCard
 
Hi McCard: Is there any further discussion regarding the motion?
 

 

[End of Scene]

 

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