Although credit conditions in the U.S. remain under strain, there have been some signs of improvement in recent weeks, Federal Reserve Board chairman Ben S. Bernanke told members of Congress yesterday.

"Interbank short-term funding rates have fallen notably since mid-October, and we are seeing greater stability in money market mutual funds and in the commercial paper market," he said at a hearing of the House Financial Services Committee. "Interest rates on higher-rated bonds issued by corporations and municipalities have fallen somewhat, and bond issuance for these entities rose a bit in recent weeks."

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