Full text of H.16 Capital Market Developments : April 3, 1961

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Not f o r Publication

DECONTBOLLtiD

SIX MONTHS
April 3, 1961.

H.lk^
CAPITAL MARKET 1EVEL0PMENTS
IN THE UNITED STATES

• •

' •

Public security financing i s expected to be larger t h i s week
than recently. Last week, shortened by Good Friday, State and l o c a l
governments sold large bond i s s u e s t o t a l i n g $137 m i l l i o n ; no large
corporate issues were' sold. This week, the calendar includes large
corporate i s s u e s f o r new c a p i t a l t o t a l i n g $110 m i l l i o n and a California
bond o f f e r i n g f o r $190 m i l l i o n .
Long-term bond y i e l d s - Changes in y i e l d s on outstanding bonds
were mixed but minor l a s t week. Yields on U. S. Government and high-grade
State and l o c a l government obligations increased s l i g h t l y while those
on lower grade State and l o c a l government bonds declined. Corporate bond
y i e l d s remained stable.
- Short- and intermediate-term i n t e r e s t r a t e s - Yields on Treasury
b i l l s increased somewhat l a s t week, but y i e l d s on three- to five-year
Government issues declined s l i g h t l y . The weekly average of rates on t h r e e to six-month, d i r e c t l y placed finance company paper was 2.63, s l i g h t l y
l e s s than a week e a r l i e r . The estimated e f f e c t i v e rate on Federal funds
was 1.56 per cent—29 b a s i s points lower than a week e a r l i e r and lliU
basis points lower than the Federal Reserve discount rate. Other major
short-term money rates were unchanged l a s t week.
FNMA. secondary market operations - Purchases of mortgages by
the Federal National Mortgage Association declined further in February,
and were lower than in any month since early 1959. Sales rose sharply,
for the most part r e f l e c t i n g commitments to s e l l entered into e a r l i e r .
FNMA has announced that, e f f e c t i v e April 3, purchase p r i c e s
would be raised 50 cents
per $100 value of mortgage, but not t o exceed
par. This i s the third increase i n FNMA purchase p r i c e s t h i s year.
'
April security volume - The volume of security financing i s
expected to be very large t h i s month. The calendar of large corporate
issues scheduled for s a l e in April i s particularly heavy and includes
the $975 million AT&T stock issue now being o f f e r e d f o r subscription and
a $300 million U. S. S t e e l Corporation debenture i s s u e . Sales of corporate
s e c u r i t i e s to raise new capital are expected t o t o t a l a record $2.0 b i l l i o n
this month, compared with $1.7 b i l l i o n f o r the entire f i r s t quarter.
State and l o c a l government bond s a l e s are expected t o continue
in heavy volume t h i s month. The estimated t o t a l f o r April i s $900 m i l l i o n ,
one-eighth larger than the revised estimate for March and nearly one-fourth
larger than in April i960. Much of the large volume i s accounted f o r by a
$190 million State of California issue which i s expected to be sold t h i s
week and a $175 million Massachusetts Turnpike issue which i s expected t o
be sold through negotiation in mid-month.




Stock prices - Stock prices, as measured by Standard and Poof's
index of 500 common stocks, increased l a s t week, reaching a new peak of
65.06 on March 30. Based on t h i s end-of-week price, the composite stock
y i e l d was 2.98 per cent—the lowest since 1929 with the exception of 1933,
when the low figure r e f l e c t e d primarily very low dividends rather than
high prices. Trading volume declined l a s t week, averaging k.9 m i l l i o n
shares a day. This i s the f i r s t week since mid-February that trading
a c t i v i t y has averaged l e s s than 5.0 m i l l i o n shares a day.
Capital markets in frkrch - Yields on seasoned corporate bonds
declined s l i g h t l y in March, while those on outstanding State and l o c a l
government bonds increased sharply in the f i r s t three weeks of the month.
Yields on corporate bonds reached t h e i r lowest l e v e l s t h i s year, but
were s t i l l s l i g h t l y above their i960 lows reached l a s t September. In
contrast, y i e l d s on State and l o c a l government bonds reached new highs
f o r the year.
These differences in y i e l d movement l a r g e l y r e f l e c t e d d i f f e r ences in the volume of security financing. Public corporate financing
f o r new capital was veiy small in March—only an estimated #225 m i l l i o n .
On the other hand State and l o c a l government bond s a l e s were heavy—
about s&800 million—and dealers' inventories of undistributed s e c u r i t i e s
were unusually large during most of the month.
Last week, however, corporate bond y i e l d s s t a b i l i z e d as the
calendar of prospective o f f e r i n g s lengthened. Conditions in the State
and l o c a l government bond market improved as new i s s u e s met with a better
reception, and y i e l d s showed l i t t l e change.
Yields on both long- and intermediate-term Government securi t i e s increased 5 basis points during March, while those on Treasury b i l l s declined about 13 basis points.
Common stock prices increased 3 per cent further in March on
unusually large volume. Since the end of the year, prices have increased
12 per cent and at current l e v e l s are 7 per cent above the July 1959 •
peak. Trading a c t i v i t y averaged 5.It- million shares a day in March as
compared with an average of h.9 m i l l i o n shares in February.
More detailed information concerning recent c a p i t a l market
developments i s presented in the attached e x h i b i t s . A h i s t o r i c a l
summary of Federal Funds Rates i s attached as Appendix A.

Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




LONG-TERM

BOND

YIELDS

^ ,

M

f ' U.S. GOVIINMINT

lonu-lerm

LOWER-GRADE




j L STATE

AND

Exhibit B - Tables f o r Exhibit A

-5-

Long-tenn Bond Yields
High-grade
™r—

Date

Corporate
A a a 1/

1951* - Low
1957 - High
1958 - Low
1959-60 - High
i 9 6 0 - Low
1961 - high
Low

2 . 8 5 (4/23)

l*.ll|
3.55
l*.6l
It. 23
h.3h
L a

Mar.
Mar.
Mar.
Mar.
Mar.

1*.23
4.22
it. 21
It. 22
14,22/

U. S. Govt.
long-term 2 /
(per cent)

3
10
17
2k
30 JD/

2.15 (8/6)

(9/27)

3 . 7 6 (lo/ia)
3 . 0 7 (4/23)

(5/2)

(1/29/60)
(9/9)
(1/6)
(3/17)

L. 12 (1/8/60)
3.75(8/s)
3 . 9 2 (1/20)
3.75 ( 3 / 1 0 )
3.77
3.75
3.78
3.80
3.81

State and
local

government
Aaa 3 /

Spread between
U. S. Govt and
Corporate S t a t e and
Aaa
l o c a l Aaa

3.30 ( 3 / 3 0 )
3.12 (2/23)

.30
.60
.22
.59
.19
.50
.1*0

.30
.50
.31*
.92
.53
.7 6
.51

3.13
3.18
3.26
3.29
3.30

.1*6
.1*7
.1*3
.1*2
.1*1

.61*
.57
.52
.51
.51

1 . 9 0 (9/2)
3.1*5 (8/29)
2.61* (5/1)
3 . 6 5 (9/24/59)
2 . 9 9 (9/1)

*

Lower-grade

Date

Corporate
Baa 1 /

State and
l o c a l govt.
Baa 2 /

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(per cent)
1951* - Low
1957 - High
1958 - Low
1959-60 - High
i960 - Low
1961 - High
Low

lt.98 (9/9)
5.12 ( 1 / 2 7 )
5 . 0 2 (3/30)

Mar.
Mar.
Mar.
Mar.
Mar.

5. ol*
5.02
5.02
5.02
5.02^

3
10
17
2h
30

3.1*1*
5.10
1*.51
5.36

(12/31)
(11/29)
(7/11)
(2/12/60)

2.93 (0/5)
l * . 5 l (8/29)
3.61* (5/1)
1*.1*6 (1/7/60)
3 . 9 8 (12/29)
l*.l6 ( 3 / 2 3 )
1*.03 ( 1 / 5 )
1*.05
1*.09
24.12.
1*.16
l*.ll

.52
1.27
.77
.81*
.71
.81
.71*

.96
1.21
.93
1.08
.A6
.93
.81

.81
.81
.81
.80
.80

.92
.91
.86
.87

jj/ Preliminary.
1/ l/aakly avorage of dally flgurea. Average term of bonds lnoluded i s 23 *26 year#.
2/ Vesldy average of dolly flgurea. The aarlos lnoludea bonds due or callable In 10 year* or more,
y Yhuroduy flgurea. Only general obligation bonds are included; average term la 20 yeara.
Koto.—illgha ajul lows are for Individual aerie a and may be on different dates for different aorles.
For apro&da, high refora to widest, and lew to narrowest,
,




.81

SHORT-

AND

INTERMEDIATE- TERM

INTEREST

RATES

G O V E R N M E N T
Weekly

rA/U
m i s

II

1

L

V

/

OTHER

r . 8 . D I S C O U N T BATE

f

$

1

Yt

A N D

v f '

mV-A/

X

B A N K S

._//

^A

3 • S VEA» I S ! u i s

- MONTH 1
Market Yie

PRIVATE

B O R R O W E R S
Going Role

DISCOUNT I
BATES
/




-7- %

Exhibit D - Tables for Exhibit C
3iort- and Intermediate-tern Interest hates
Government
Date

Discount
rate

1/

/
.2-month
b i l l s 2/

Sh - Low
57 - High
58 - Low
59-60 - High
60 - Low
Si - High
Low

1.50
3.5o
1.75
a.oo
3.00
3.00
3.00

.61
3.61
.58
1*.59
2.11
2.56
2.17

%3
\ 10
'• 1 7
•. 2k
\ 30 B/

3.00
3.00
3.00
3.00
3.00

2.56
2.1*1*
2.35
2.28
2.38

(6/11)
(10/18)
(5/29)
(1/8/60)
(10/28)
(3/3)
(1/27)

Yields
6-month
b i l l s 2/
(per cent)

3.02
5.07
2.38
2.75
2.h2

(12/26)
(1/8/60)
(12/30)
(3/3)
(1/27)

2.75
2.56
2.1tf
2.1*5
2.5k

3-5 year
issues 2/

Spread between yields on
3-month b i l l s and yields on
6-mo. b i l l s | 3 - 5 yr. issues

1.66 (4/30)
li.Ol* do/ia)
2.1k (V6)
5 . 00 (12/24/59)
3.10 (12/30)
3.59 (1/20)
3.36 (3/10)
3.49
3.36
3.1*1*
3.1*5
3.1*3

..26
.79
.16
.25
.12

,66
.86
.01*
1.81
.38
1.1*0
.92

.19
.12
.12
.17
. .16

.93
.92
1.09
1.17
1.05

__

.

Banks an£,OtherrPrivate Borrowers
Date

Stock Exchange
c a l l loan 2 /

Prime
rate 1/

Finance company
paper 3/

Federal
funds U/

Spread between
3-mo. b i l l s and
finance co. paper

(per cent)
>1* - Low
?7 - High
18 - Low
?9-60 - High,
>0 - Low
il - High
Low

3.00
1|,50
3.50
5.5o
If. 50
l*.5o
l*.5o

3.00
1*.50
3.50
5.00
1*.50
l*.5o
l*.5o

1.25(12/31)
3.88 (u/is)
11.13 (u/ti)
5.13 (1/22/60)
2.88 (12/30)
2.88 (3/10)
2.63 (2/17)

n.a.
3.50 (li/e)
.13 (V29)
1*.00 (6/13/60)

.
,
'.
.
.

l*.5o
l*.5o
l*.5o
1*.50
1*.50

l*.5o
l*.5o
l*.5o
1*.50
1*.50

2.81*
2.88
2.78
2.68
2.63'

2.20
2.75
1.65
1.85
1.56

3
10
17
21*
30 q/

. 9 5 (12/2)

2.85 (2/17)
.1*3 (1/27)

0
.63
-.35
1.02
.22
.56
.15
.28
.1*1*
.1*3
.1*0
.25

Udokly rate show* UntUM in effect at end of period.
StooU Exchange call loaft.rute In going rat# on oall loann seourod by customers' stook exohange collateral at
Nun York City banks, Prime rate io that charged by large banks on Jhnrt-ter» loans to business borrowers of
the higheut credit standing,
i f HirUdt yield; weekly averages computed from dally olosliy bid prices. Series of 3-5 year Issues consists of
oelootiid notes and bonds,
«
3/ Average of dally rates published by finance companies for directly pitied paper for varying maturities In the
90-179 day rapge.
4/ Weekly average of dully effective rate, which Is the rate for the heaviest voluee of purchase and sale transactions
1
as reported to the Federal Reserve Bank of Now York.
Mot-t.—liltihs and lows are for individual series and may be on different dates for different dates for different scries.
Kor
spreads,
high
refers
to
widest,
and
low
to
narrowest.

—
W



STOCK

MARKET

jfcCHANGt IN SEKIES | ~

i0

'

Mllliom of Shorn

FEDERAL

NATIONAL

SECONDARY

MARKET

MORTGAGE
OPERATIONS




ASSOCIATION

Exhibit r - Tables for Exhibit E

-9-

Stock Market
Stock price
index 1 /

Pate

1957-60 - High
Low
1961 - High
Low

60.51 (7/31/59)
39.18 (12/20/57)
65.06 (3/30)
58.18 (1/6)

February
March
Mar. 17
Mar. 24
''lar. 30 2 /

62.17
61*. 12
64. 60
64.42
65.06

Common
Trading
stock
volume 3/
yields 2/'J ^ a l l i o n s
(per cent)' of shares)
3.08
It. 72
2.98
3.32
3.13
3.03
3.01
3.01
_2.98

Stock market customer credit
Customers1
Bank
debit balloans to
ances 4 /
"others" 5 /
(In millions, of dollars).

1.9
1.4.
5.8
3.6

4,76k
3,55k
4,521
4,4l6

4.9
5.4
5.3
5.4
4.9

4,524
n.a.
n.a.
n.a.
n.a.

1,166
n.a.
1,157
1,167
n.a.

3,358
n.a.
n.a.
n.a.
n.a.

available.
jg/ Prnlln-ltary.
L/ Standard and Poor's ocmpoelte Index of 5U0 ceranon stocks, weekly olooliy prices, 1941-43*10, Monthly data are
averages of dally ficures rather than of Frldcy'e only. High:' and lows are for Fridays' data only,
i j Standard and Poor'o ocopo&lte etoek yield based on Wednesday data converted to weekly closing prices by Federal
Reccrve. Yleldo shown are for dates on which price Index reaohod I t s high or low.
\J Averages of dally trading volv-.ie on the Mow York Stock Be change.
\j End of month figures for member finr.o of the Haw York Stock Exchange which carry margin accounts; excludeu balances
secured by U. S. Govtrimont obligations.
\ ] Wednesday figureo for weekly reporting member banks. Excludes loans for purchasing or carrying U. S, Government
s e c u r i t i e s . Prior to July 1, 1959, such los.nn are excluded only at banks In Nor York and Chicr.go. Weekly reporting
banks account for about 70 per oont of loans to others. For fui^Ler detail see Bulletin.

Federal National Mortgage Association Secondary Market Operations 1/

1960 - Feb.
Mar.
Apr.
, May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.

Purchases
Estimated Offerings to FKMA
by
Standby
Immediate
Total
m\n
commitment
purcha s
(In millions of dol! W
116.7
6.9
128.9
135.8
8.6
135.0
; 121). 6
133.2
102.6
96.2
_7.3
103.5
91.5
it. 7
93.8
98.5
60.8
6.1
93.7
99.9
5
1
93.7
82.9
68.0
75.6
1U. 8
89.1
io4.o
63.O
69.8
3.3
r/73.1
58.8
14.6
68.6
83.2
51.2
4.8
56.9
61.7
45.5
1.9
51.4
53.3
a.2
2.1
U8.1
50.1
2.6
33.7
33.7
36.3

Sales
by
Hi MA

3.6
1.0
3.2
.1

.8

1.1

8.9
23.3
26.2
70.7

•«»Less th.in $50,000.
1/ Data represent unpaid principal balances of the mortgages Involved, exclusive of prenims dlscounts, or other charges. O f f e r i n g ars amounts of applications received during the period from
sellers propositi that FtMA execute purchasing contracts. An limodlate purchase contract covers
A standby commitment
e x l o t i r e mortgages which the seller must deliver to FKHA within 45 days.
contract relates to proposed mortgages, on housing not yet under construction, which the s e l l e r
must usually deliver within one ynor. Pur-chioie include thoue under both lirinediate purchases and
iit&ndby commitment contracts. Data exclude FNMA activity under Special Assistance and Management
end Liquidating Programs.




Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital
State and l o c a l 2/
Corporate 1/
1961 • 1 I960
1 I960
1 1959
1 1959

1961
January
February
March
April
May

.

- 577
715
860

821
738
646

e/2.000

766
567
1,031*

July
August
September

quarter
quarter
quarter
quarter

639
858
646

891
785
887

731
550
1,033

932
593
1,006

727
962
738

535
740
703

572
602
689

567
516
165

874
959
876

879
864
900

339
502
E/481

597
519
1*55

2,151
2,367
2,127
2,709

2,20k
2,567
1,979
2,642

1,943
2,316
1,863
2/1,322

2,143
2,531
1,548
1,571

14,519
6,915
9,655

4,771
6,750
9,392

4,259
6,122
E/7,444

4,674
6,222
7,793

''

October
November
December
1st
2nd
3rd
4th

739
623
582

e/650
e/500

e/l,6?6

1 s t half
Three quarters
Year

e/725
e/600
e/SOO

e/2,12?

'

Excluding finance companies y
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/l,3T6

Year
1/
2/
3/

1,722
2,150
2,017
e/2,309

1,999
2,412
1,716
2,503

e/8,198

8,630

Estimated.
£ / Preliminary.
Securities and exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new c a p i t a l issues excluding offerings of s a l e s and consumer finance
companies.




Other Security Offerings
(In millions of dollars)
Gross long-term 1 /
Foreign government 2/
Federal agency 3/
1961
I 1960
I 195?
19ST
1
January
February
March

1^9

2
175
70

81
60
2

182
150
150

April
May

3h
72
1*0

58
50
U2

11*8
35U

July
August
September

25
1
36

85
1
35

199

October
November
December

31*
2
l4l •

33
30
70

160
11*9
181

86

51*7

1,672

707

Year

533

.

State and local government 5/
January
February
March

58
11*0
-80

-1*
181
1*

April
May

70
-11*6
-157

197
-25
-197

July
August
September

1*8
1*15
-175

57
392
131

October
November
December

-16
'56
-189
18

Year

199
175

—

98
150

—

Federal agency 3/
-196,
-202
-59

.

-82
176
33

-277
170
320

50
368
286

95
23
-201 .

362
133
79 .

-81
-176
-117

-23
-33
-250

280
2ii0
1*1*

362

-633

1,969

EZ Preliminary.
1/ TbiN data d i f f e r from those In Bchibtt 0 i n that re fundi r« issues, a s well as new capital Issues, are included.
Long-term aeovriti.es are defined a s those maturing l a store than one year.
2/ Includes securities offered In the United States by foreign goverasents and t h e i r subdivisions and by i n t e r national organizations. Source: Securities and Exchange Commission.
3/ Issues not guaranteed by the U. S. Oeverasent. Source« long-term, Securities and Exchange Commission; shortterm , Treasury Department and Federal Reserve.
£ / These data d i f f e r from those i n trill b i t 0 and above i n t h a t they represent new offerings l e s s retirements, whether
from the proceeds of refunding issues or f r e e other f i n d s . Data Include only Issues with o r l g l s U maturity of one
year or l e s s .
5/ Principally tax and bond anticipation notes, warrants or c e r t i f i c a t e s and Public Housing Authority notes. I#
KdZral*%S%e"* ° ° U S 1 " l w M
* oomesrhat longer term than one year. Source. Bond Buyer and




Exhibit I
Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Month
i960 - February
March
April
May

corporate
j

July
August
September
October
November
December
I96I - January
Februa in-

State and
local
government

• 262
381*
3#
139
1*1*2
303
581
266
56 6
k65
260
11*7
267

283
225
370
23k
561
191
298
367
1*6
186
222
391
360

Other 2/
320
191
71
28
30
75
25
77
150
99

Large Individual Issues Offered during March

Issuer

Type 3/

Coupon
Amount
Offering
(millions
Maturity net i n t e r - y i e l d
of
est cost
dollars)

CORPORATE
Conv.deb.
Am. Machine & Foundry Co.
Southwestern Pub. Serv. Co. 1st mtg. bds.
Sub.deb.&stk.
Apco^Oil Corp.

39.5
15.0
15.1

1981
1991
1981

k-l/k
h-1/2

5-3/4

1.93
1*.50

Rating

Ba
A
B

STATE AND LOCAL GOVERNMENT
Rev,,-Ut.
Chicago, I l l i n o i s
G., 0 .
Commonwealth of Puerto Rico
G. 0.
Denver, Colorado
G. 0.
State of New Jersey
G. 0.
St. Paul, Minnesota
Rev.- -Rent.
Cherokee, Alabama
G. 0.
Duval Co. , Florida .
Rev.- •Rent.
Pa. Gen. State Auth.
G. 0.
Columbus, Ohio
G. 0.
State of Massachusetts
G. 0.
State of Rhode Island
G. 0.
Detroit, Mich.
G. 0.
Wash. Sub. Sanit. Dist.,Md.
G. 0. .
Detroit Sch. D i s t . , Mich.
G. 0.

Commonwealth
of Kentucky



30.0
1*0.0
15.6
20.9
10.6
25.0

15.0

25.0
12.8
62.5
10.9
17.0
10.0
10.0
100.0

1962-85
1962-81
1972-99/81
1968-88/79
1962-91
1963-86
1962-81/71
196U-88/71
1963-2001
1962-2010
1962-91
1962-85
1962-91
1962-87
1962-90/81

3.53
3.89
3.55
3.16
3.35
n.a.
3.20
3.ii8
3.51
3.50
3.a
3.1)9
I'.ll
3.61*

1.50-3, , 6 0
1.75-1*.,00
2.85-3. 60
2.1*0-3, ,30
1.60-3, ,50
n.a,
1.65-3.
2.10-3. 65
1.90-3. 85
1.60-3. 85
1.60-3. 65
1.70-1*. 30
1.70-1*. 20
1.80-1*. 20
1.60-3. 75

Aa
Aaa
Aa

Aa
Aa
A
A
A
A
Aa

1-2

-13-

Large Individual Issues Offered daring March (Cont'd)

Issuer

Type y

Coupon
Amount
rate or Offering
(millions
Rating
Maturity net i n t e r - y i e l d
of
dollars)
e s t cost

OTHER
Federal Land Banks
1/
2/
2/

k/

Bonds

67.0

1966

3-5/8

3.90

Includes corporate and other security o f f e r i n g s of $15 million and overs State
and l o c a l government security offerings of $10 million and over.
Includes foreign government and International Bank f o r Reconstruction and
Development issues and non-guaranteed i s s u e s by Federal agencies.
In the case of State and l o c a l government s e c u r i t i e s , G.O. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from public
u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from quasiu t i l i t i e s ; Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c taxes
only; Rev.-Rent., revenue bonds secured s o l e l y by lease payments.
l / h per cent 1981 maturities not reoffered.




I

-llttorthcoming Large Long-term P u b l i c S e c u r i t y O f f e r i n g s f o r New C a p i t a l
(Other than U. S. Treasuiy) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation

I960 - t a r . 31
Apr. 29
Hay 31
June 30
J u l y 29
Aug. 31
S e c t . 30
Oct. 31
Nov.. 30
Dec. 30
19cl - Jan. 31
Feb. 28
• Mar. 31

During month f o l l o w i n g
date shown
S t a t e and
Corporate l o c a l govt. o t h e r 2 /
299
202
483
"
237
596
216
576
hhO
260
91
110
55
1,580

259
243
277
180
275
283
212
258
2h2
i|12
181
307
559

30
30
77
50

—

Subsequent t o
date shown
S t a t e and
Corporate
l o c a l g o v t . Other 2 /
280
258
502
380
32li
283
336
391
560
682
360
638
806

3hh
357
553
155
1,006
731
836
585
335
1,036
l,0ito
1,125
1,700

60
30
127
50

—

Forthcoming Large O f f e r i n g s , a s of harch 31
"type

Ar.ount
Approximate d a t e
(millions
of o f f e r i n g
of d o l l a r s )

CORPORATE
Southern C a l i f . Edison Co.
John. Deere C r e d i t Co.
Tennessee Gas Transmission Co.
I ' l i n t k o t e Co.
American Telephone & Telegraph Co.

1 s t r e f . mtg. bds.
30.0
Deb.
21;. 0
Pfd. s t k .
20.0
i-'t-'b.
35.0
Com. s t k .
e/975.0

Spiegel, Inc.
l-.ead Coip.
T r a n s c o n t i n e n t a l Gas Pipe Line Co.
Minneapolis-honeywell Regulator Co.
I-iinneap0lis -iioneywell Regulator Co.
-United S t a r e s S t e e l Corp.
::To\.'a-Illinois Gas & E l e c . Co.--.
i-i-otorola, Inc.
Washington Car; L i g h t Co.
tiei: York ZtaLe E l e c . & Gas Co.
i'uke Power Co.

Deb.
Deb.
1 s t mtg. p . 1. bds .
S.I', deb.
Pfd. s t k .
S.I-. deb.
1 s t mtg. bds.
. Deb.
Ref. ,%LT. bds.
1 s t n ; , t . bds.
Com. s t k .

Commerce Oil Refining Corp.
Realty C o l l a t e r a l Corp.

Deb., bds. & com.
Coll. t r . notes




Lo.o

25.0
35.0
2^.0
25.0
300.0
15.0
30.0
15.0
25.0
15.0
15.0
20.0

Apr,. 5
. 6
. c
iipr.. 7
Apr.. 1U
(rights expire)
Apr., Ih
Apr., 18
. 20
-\pr., 20
<-pr., 20
Apr. 20
Apr. 26
Apr.
Lay h
Eay 17
(rights expire)
Indefinite
Indefinite

-15-

J-2
Forthcoming Large Offerings> as of March 31 (Cont'd)
Issuer

Type

Ambunt
Approximate date
(millions
of offering
of dollar^)

STATE AND LOCAL GOVERNMENT
State of California
Cleveland, Ohio
Univ. System Bldg. Auth. of Ga.
*Los Angeles Co. Flood Cont* Dist* j
Calif.
Chicago, I l l i n o i s
Public housing Authorities
*State of Oregon
*State of Tennessee
State of Michigan
Mass. Turnpike Auth.
Los Angeles Unif. Sch. D i s t . , Calif.
Cincinnati, Ohio
Orleans Parish School D i s t . , La.
Dade County, Florida
New York State Housing Fin. Agency
Jacksonville Expressway Auth.

G.O.
G.O.
Rev.-Q.Ut.

190.0
llu5
13.0

Apr. 5
Apr. 11
Apr, 11

Rev.-Ut,
G.O.
G.O;
G.O.
G.O.
Rev.-Ut.
Rev.
G.O.
G.O.
G.O.
GwO.
Rev.
Rev.-Ut.

15.0
30.3
50.1
30.0
15.6
25.0
175.0
30.0
21.5
10.0
1*6.0
100.0
liO.O

Apr. 11
Apr. 1Z
Apr. 20
Apr. 25
Apr. 26
Apr. 26
Apr.
May 2
May 9
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
None
*—Included in table for f i r s t time.
e / Estimated.
1 / Includes corporate and other issues of $15 million and over; State and l o c a l
government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development- issues and non-guaranteed issues t)y Federal agencies.
Note.—Deletions for reasons other than sale of issue: None.




Exhibit K
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /
Date

1952-1959 - High
Low

A-rated offering y i e l d s
Aa-rated offering y i e l d s
Amount above
Amount above
Actual
Actual
seasoned y i e l d s
seasoned y i e l d s
(per cent) (basis points) (per cent) (basis points)
5.30 (12/8/59)
2.93 (3/31/54)

1959 - Oct.
Nov.
Dec.
1960 - Jan.
Feb.
Mar.
Apr.
May
June
July 8
13
Sept. 15
23
28
Oct. 5
21
Nov. 4
16
17
18
Dec. 7
1961 - Jan. 12
18
25
Feb. 8
16
16
23
2b

87
-8

5.132/
*5.08
*5.30

36
42
63

5.09
4.82
• 4.91
*4.88
4.83

45
25
37
32
26

i!| I

4.672/

22

4.78
4.85

33
40

5.00
4.6o
4.55
4.44

49
11
7
-2

4.37

8

5.65 (9/18/59)
3.00 (3/17/54)

123
-15

5.33

43

5.45v
*5.301/

51
28

4.97
5.14
5.15
*4.95
4.93
4.88
4.80

9
35
. 29
11
11
8
24

4.88

26

5.05

43

4.60
4.65
4.47
4,50
4.4o

-2
;5'
5
- 5

•—Single observation, not an average.
1/ "Covers only 30-year f i r s t mortgage bonds, as reported in Moody's bond Survey.
Except where indicated, the actual y i e l d f i g u r e and the amount above seasoned
y i e l d s are averages of o f f e r i n g s during the indicated period and of the d i f f e r ences between these new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s of similar
quality f o r the same day. Average maturity f o r the seasoned issues varies from
26 to 28 years.
2 / Provides f o r a 5-year period during which issue may not be c a l l e d f o r refunding
at a lower coupon r a t e . Monthly averages so marked include one or more issues
with such a provision. Other i s s u e s have no such provision.




Appendix A
Federal Funds Rate

-17-

Weekly - July 1954—
Date

195L

July 2

9

16
23
30

I

Rate
1.19^
M
1.10

.50

.1+0

Aug, 6
13
20
27

.58
l.l+l
1.1+0
1.31

Sept. 3
10
17
2l+

1.1+1
1.06
1.03
.65

Oct. 1
8
15
22
29

1.09
.68
1.31
.65
.90

Nov. 5
12
19
26

1.22
.25
.1+5
1.19

Dec. 3
10
17
2l+
31

1.38
1.39
1.18
1.1k
1.1+1+

1955
Jan. 7
11;
21
28

1.28
lohk
1.35
1.1+0

Feb, 1;
11
18
25

1.08
1.21
1.28

1/

i.a

Date

Rate

Date

1.31

1.16:
1.26

Nov. li
11
18
25

2.25
2.25
2.29
2.50

July 6
13
20
27

2.75

Apr. 1
8
15
22
29

1.1+1+
1.1+1+
1.1+3
1.50
1.21

Dec. 2
9
16
23
30

2.1+9
2.50
2.1+3
2.1+9
2.1+6

Aug. 3
10
17
21+
31

2.73
2.75
2.75
2.79
2.53

May 6
13
20
27

1.61+
1.03
1.61

3.00
2.90
2.80
3.00

1.69
1.66
1.65
1.58

2.17
2.1+8
2.50
2.50

Sept. 7
11+
21
28

June 3
10
17
21+

1956
Jan. 6
13
20
27

26

3.00
2.97
2.88
2.96

1.69
1.69
1.68
1.66
1.68

2.50
2.50
2.5b
2.1+8

Oct. 5
12
19

July 1
8
15
22
29

Feb. 3
10
17
21+

1.81
1.95
1.98
1.99

2.50
2.50
2.1+9
2.50
2.50

2.99
3 "00
2.97
2.95
2.1+3

Aug. 5
12
19

Mar. 2
9 '
16
23
30

Nov. 2
9
16
23
30

2.55

Dec. 7
11+
21
28

2.93
- 2.98

Sept. 2
9
16
23
30

2.03
2.09
2.18
2.20
2.25

Apr. 6
13
20
27

1Oct. 7
111
21
28

2.21+
2.25
2.23
2.25

Mar. 1+
11
18
25

26

Average of two days in July.




I

i.a

1.26

May I4.
11
18
25
June 1
8
15
22
29

|

Rate

2.50

2.59
2.75
2.75
2.75

2.75
2.75

2.75

2.75
2.75
2.75
2.50

Date

.

I

Rate
2.75
2.75
2.75

3.00

2.70

-18-

Date

Rate

Date

Rate

Date

Oct. 4
11
18
25

3.50
3.50
3.50
3.50

July 3
11
18
25

M
1.05
.88
.38

Apr. 3
10
17
24

Nov. 1
8
15
22
29

3.5b
3.50
3.31
3.17
3.00

Aug. 1
8
15
22
29

May 1
.38
8
1.25
1.65 •
15
22
1.58
1.65
29

Dec. 6
13
20
27

2.90
3.00
3.00
3.00

Sept. 5
12
19
26

1.63
1.70
1.53
1.88

June 5
12
19
26

3.15
3.35
3.50
3.45

1958
Jan. 3
10
17
24
31

3.00
2.98
2.83
2.90
1.65

Oct. 3
10
17
2b
31

1.70
1.90
1.94
1.98
1.15

July 3
10
17
24
31

3.25
3.5o
3.45
3.5o
3.50

Feb. 7
lit
21
28

1.85
2.72
1.10
.63

Nov. 7
Ik
21 .
28

2.13
1.88
2.45
2.50

Aug. 7
14
21
28

3.50
3.50
3.50
3.5o

Mar. 7
Ik
21
28

1.75
1.38
1.40
.60

Dec. 5
12
19
26

2.23
2.35
2.50
2.50

Sept. 4
11
18
25

3.50
3.56
3.85
3.95

Apr. 3
11
18
25

.48
1.63
1.58
1.58

3.80
4.00
3.94
3.95
4=oo

.88
1.15
.55
.28
.13

2.46
2.50
2.43
2.50
2.50

Oct. 2
9
16
23
30

May 2
9
16
23
29

1952
Jan. 2
9
16
23
30
Feb. 6
13
20
27

2.50
2.25
2.30
2.50

Nov. 6
13
20
27

4.00
4.00
4,oo
4.00

13
20
27

.90
1.38
.98
.45

Mar. 6
13
20
27

2.55
2.63
2.90
2.91

Dec. 4
11
18
24
1
31

3.95
4.00
4.00
4.00
4.00

Rate

Date

1957
Jan. 4
11
18
25

2.33
2.73
2.86
2.86

Feb. 1
8
15
21

3.00
3.00
3.00
3.00

Mar. 1
8
15
22
29

3.00
3.00
3.00
3.00
2.79

Apr. 5
12
18
26

3.00
3.00
3.00
3.00

May 3
10
17
24
31

3.00
3.00
3.00
3.00
3.00

June 7
14
21
28

3.00
3.00
3.00
3.00

July 5 12
19
26

3.00
3.00
3.00
2.98

Aug. 2
9
16
23
30

2.96
3.00
3.25
3.30
3.50

Sept. 6
13
20
27

3.25
3.50
3.50
3.50

I




|

|

I

Rate
2.81
3.00
3.00
3.00
2.90
3.00
3.00
2.45
2.80

Date

Rate

Date

I960
Jan. 8
15
22
29

Loo
Loo
Loo
3.92

Oct. 7
lU
21
28

1.00

Feb. 5
12
19
26

Loo
3.94
Loo

Nov. It
11
18
25

2.95
3.00
2.60
2.19

Mar. 1|
11
18
25

Loo
3.95
3.95
3.30

Apr. 1
8
lit
22
29

3.80
3.90
3.95
3.75
3.90

Dec. 2
9
16
23
30

May 6
13
20
27

Loo
Loo
3.85
3.60

June 3
10
17
2k

3.31
3.70
3.25
3.5b

July 1
15
22
29

2.35
3.50
2.70
3.50
2.90

Aug. 5
12
19
26

3.kO
2.85
3.00
2.55

Sept. 2
9
16
23
30

2.85
2,9k
2.60
1.55
3.00

3.81

|

Rate
2.80
2.92
2.90

.95

1.90
1.60
2.20
2.33

1961
Jan. 6
13
20
27

1.56
1.65
1.1*0
.43

Feb. 3
10
17
2lt

2.15
2.70
2.85
2.63

Mar. 3 „
10
17
2k
31

2.20
2.75
1.65
1.85




Date

-TbtT

Date

Rate