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Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. CONFIDENTIAL (FR) May 13, 1977 CLASS II - FOMC SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS Prepared for the Federal Open Market Committee By the Staff Board of Governors of the Federal Reserve System SUPPLEMENTAL NOTES The Domestic Nonfinancial Economy No textual addendums to the Greenbook were required. The Domestic Financial Economy No textual addendums to the Greenbook were required, but the usual updating of interest rate developments is contained in the table on page 2. ERRATA - PART II: Appendix A - page A-1, line 16: change 3 per cent to 2 per cent. Addendum - page III-4 (footnote): The estimated excess of individuals' nonwithheld Federal income tax payments over last year's was revised downward from $2.5 billion to $1.5 billion. As a consequence, the impact of that source as a special factor stimulating demand deposits is reduced commensurately. -2- INTEREST RATES (One day quotes-in per cent) 1977 Highs 1977 Lows Apr. 18 May 12 5.31(5/11) 4.47(1/5) 4.71(4/20) 5.31(5/11) 5.,04(5/11) 4.39(1/3) 4.63(1/10) 4.66(1/3) 4.88(1/5) 4.51 5.25(5/12) 5.38(5/12) 5.94(5/12) 5.00 5.25 5.13 5.38 5.94 5.13(5/11) 4.50(1/5) 4.70(4/13) 5.13(5/11) 5.30(5/11) 5.38(5/12) 4.54(1/3) 4.71 5.26 4.63(1/7) 4.88 5.38 5.,50(5/11) 4.65(1/5) 5.00(4/13) 5.50(5/11) 5.52(5/11) 4.66(1/3) 4.97 5.49 5.,72(5/11) 5.00(1/5) 5.25(4/13) 5.72(5/11) 3,,00(1/21) 2.65(1/7) 2.80(4/15) 3.00(5/6) 6.66(2/2) 7.35(5/11) 7.80(5/11) 5.73(1/3) 6.08 6.96 7.58 6.60 7.31 7.78 Seasoned Aaa 8.,13(3/14) 7.87(1/5) Baa 9.18(2/25) 8.,33(5/13) 8.35(5/13) 7.99 9.04 8.25(4/15) 8.16(4/15) 8.08(5/11) 9.01(5/11) Aaa Utility New Issue 9.01(5/11) 7.90(1/5) 7.95(1/5) 5.,93(2/2) 5.70(4/13) 5.70(4/14) 5.82 8.72(4/6) 8.46(1/12) 8.62 8.70(5/2) Short-Term Rates Federal funds (wkly. avg.) 3-month Treasury bills (bid) Comm. paper (90-119 days) Bankers' acceptances Euro-dollars CD's (NYC) 90 days Most often quoted new 6-month Treasury bills (bid) Comm. paper (4-6 mos.) CD's (NYC) 180 days Most often quoted new 4.75 4.75 year Treasury bills (bid) CD's (NYC) Most often quoted new Prime municipals Intermediate- and Long-Term Treasury (constant maturity) 3-year 7-year 20-year Corporate Recently Offered Municipal Bond Buyer Index 6.50(1/3) 7.20(1/3) 8.33p(5/13) 8.35p(5/13) Mortgage-average yield in FNMA auction