With declining lender demand for advances to fund new originations, the Federal Home Loan Bank System saw a dramatic decline in new debt issuance last year mostly through a reduction in discount-note activity. The FHLBanks issued a total of $1.993 trillion in debt last year, down 39.4 percent from 2008’s record volume of $3.287 trillion. Even with the sharp downturn... [Includes one chart]