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

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V
DECONTROLLED AFTER SIX MONTHS

January 16, 1961.
I C A P I T A L MARKET DEVELOPMENTS
D P T H E " UNITED 'STATES AND CANADA

(Including Monthly Review of Financial
Developments in the United Kingdom)
Part I - United States
(Including Monthly Review of Sources and Uses
of Funds of Financial Intermediaries)
Three la^ge State and local government bond issues with aggregate
proceeds of $1^2 million were offered to the public last week5 no large
corporate issues were sold. This week, ending January 20, large corporate
issues totaling $U5 million and State and local government issues amounting
to $138 million are scheduled for sale.
Long-term bond yields- - Yields increased last week for all
categories of outstanding bonds, except those for higfi-grade corporate
bonds which declined slightly. The increase was slight for yields on
Baa corporate and for State and local government bonds, but somewhat
greater for those on U. S. Government obligations.
A new Aa-rated first mortgage electric utility bond issue was
offered to investors last week to yield h„ 60 per c e n t — W basis points
below the yield for the last comparable issue, an offering made in early
December. The spread between this yield and that on similar outstanding
bonds was 11 basis points, the narrowest since early 1959 •
Short- and intermediate-term interest rates - Yields on the sixmonth bills and three- to five-year Government obligations increased last
week, while rates on three-month bills remained stable. Rates on 90- to
179-day directly placed finance company paper changed little last week
as companies continued to quote the rates announced a week earlier. Other
major short-term rates were unchanged.
Mortgage and bond yields - In December average yields in the
private secondary market on selected unseasoned 5 - 3 A per cent FHA new
home mortgages declined slightly further to 6.0U per cent. Yields on
new corporate bonds rose sharply (to k»79 per cent) narrowing the spread
to the smallest since December 195£.
Stock prices - Stock prices increased sharply last week in
expanded trading activity. Standard and Poor's index of 500 common
stocks closed at 59.60 on January 13, two per cent higher than a week
earlier and only one per cent below the i960 high reached on January 5»
Trading volume, averaging ii.lt million shares a day, was the largest
since mid-October 1958.




Institutional investors - Combined savings inflow in November
at three major types of financial institutions—life insurance companies,
savings and loan associations and mutual savings banks—was $1.2 billion,
about one-fourth greater than in either 1558 or 1959. Since August,
growth at each of these institutions has been larger than in the corresponding months of 1959 and for the first eleven months as a whole, their
combined growth was nearly one-tenth larger. (Time and savings deposits
at commercial banks have also increased much more in recent months than
in 1959.)
The increase in life insurance company assets in November was
$522 million, 5 per cent more than a year earlier. There was a slight
net acquisition of U. S. Government securities in contrast with heavy
liquidation in November 1959. The net increase in holdings of business
securities was slightly smaller than a year ago and the increase in
holdings of mortgages was one-eighth smaller.
Inflow to savings and loan associations continued to increase at a record pace in November. The $658 million increase in share capital
was nearly three-eighths larger than in November 1959. Net acquisition
of mortgages was one-eighth larger than a year earlier. This is the
first month in i960 when net purchases of mortgages have been larger
than in the corresponding month of 1959 as these associations have used
some of their funds to repay borrowings. (There was a very small increase
in borrowed funds in November.)
, Deposits at mutual savings banks increased $39 million in
November in contrast with a $27 million decline in 1959. The increase
in mortgage holdings was nearly two-fifths larger than duxing November
1959. Net purchases of business securities were small in November.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Developments in the Canadian capital markets are presented
in Part II at the end of this report.

Capital Markets Section,
Division of Research and Statistics,"
Board of Governors of the Federal Reserve System.




LONG-TERM BOND YIELD*
HIGH-GRADE

/Vf

l . r U.S. GOVtlHMENT
K /
-

LOWER-GRADE

TA,y


V


H.ll*

Exhibit B - Tables for Exhibit A
Long-term Bond Yields
High-grade

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

2 . 8 5 (LJ/23)

2.15 (8/6)
3.76 (10/18)

-5-

Spread between
U. S. Govt, and
State and
Corporate
Aaa
local Aaa

State and
local govt.
Aaa y

(Per cent)
195U
1957
1958
1959

-

Low
High
Low
High
Low
1960 - High
Low

Dec. 16
Dec. 23
Dec. 30
Jan. 6
Jan.13 s/

BE
1.90(9/2)

s i ®

l*.6l (12/31)
U.09 (1/9)
L 6 1 (1/29)
1*.23 (9/9)

3.75 (8/5)

k.3k
k.3h

3.86
3.86

3.06 (3/26)

3.53 ( V 7 )
2.99 (9/1)

3.12

.30
.1*7
.31*
.92
.53
.92
.53

.1*8

.7it
.7U
.71
.71
.76

.1$

3.12
3.H

3.82

U.35
ii.3U
li.33

.30
.60
.22
.50
.16
.59
.19

.53
.50
.13

3.84
3.90

Lower-grade

Date

Corporate
Baa 1/

State and
local govt.
Baa y

Spread between
Aaa and Baa
State and
Corporate
local govt.

(Per cent)
1951
1957
1958
1959

Low
High
Low
High
Low
1960 - High
Low

Dec.
Dec.
Dec.
Jan.
Jan.

-

16 •
23
30
6
13 e/

3. Ill* (12/31)

SIS®

£:$

1

5.36 (2/12)
lt.98 (9/9)

5.10
5.09

5.09
5.08
5.10

2.93 (8/5)

3

@

1*.1*6 (7/2)
3.92 (3/26)
It. 1*6 (1/7)
3.98 (12/22)
k.06
3.98
3.98
1*.03
U.OU

.52
1.27
.77

.96
1.21

1

.79
1.08
.86

.71

.77
.75
.77

'.la

.91*
.86
.87
.90
.90

o/ PrelUdnary.
y Weekly average of dally figures. Average tern of bonds included Is 26-26 years.
2/ Weekly average of dully figures. The series includes bends due or callable in 10 years or more.
3/ Thursday figures. Only general obligation bonds are Included« average term Is 20 years.
Mete.—Highs and lows are for Individual series and may be on different dates for different series.




SHORT-

AND

INTERMEDIATE- TERM INTEREST RATES

GOVERNMENT

/

13 - 5 YUI ISSUES

«

A

asEr
W

) U J V

J

1 1
3 . MONTH IIUS

. I. DISC0UNT_ UTE

Ir

•AtlET YIELDS

w..u„

"

'P.,

PRIVATE

STOCK EXCHANGE I
CAtl IQAHS

L

V

M57




i

^FINANCE C •PANT PAPlT

fits!

mi

mo"

-7-

Exhibit D - Tables for Exhibit C
Short- and Intermediate-term Interest Rates
Government
Date

Discount
rate 1/

3-month
bills 2/

Yields
6-month
bills 2/

3-5 year
issues 2/

Spread between yields on
3-month bills and yields on
it6-mo.
• —u'ry-iri
v r»-::r• bills 13-5
yr. a'
issues""

(per cent)
1951*
1957
1958
1959

-

1.50
3.50
1.75
In 00
2.50
It.OO
3.00

.61 (6/11) —
3.61* ( 1 0 A 8 ) .58 (5/29) 3.02
lt.57 (12/21*) lt.91
2.63 (2/20) 2.92
1*.59 (1/8) 5.07
2.11 (10/28) 2.38

Dec.
Dec.
Dec.
Jan.
Jan.

16
23
30
6
13 EZ

3.00
3.00
3.00
3.00
3.00

2.25
2.21*
2.18
2.28
2.28

Low
High
Low
High
Low
i960 - High
Low

Date

Stock Exchange
call loan 1 /

1.66 (V30)
l*.0l* ( 1 0 A 8 )
(12/26) 2.1U (6/6)
(12/31) 5.00 (12/21*)
(1/2) 3.70 (1/2)
(1/8) 1*.97 (1/8)
(12/30) 3.10 (12/30)

2.50
2.1*2
2.38
2.1*8
2.51

3.1*9
3.1*6
3.1*0
3.39
3.52

.66
.86
.01*
1.1*2
.1*0
1.81
.38

.26
.79
.19
.58
.16
.25
.18
.20
.20
.23 ,

. 1.21*
1.22
1.22
1.11
1.21*

Spread between 3-month
Prime
Finance company Treasuxy bill yield and
finance company
rate 1 /
paper J/
paper rates
(per cent)

1951*
1957
1958
1959

-

3.00
1*.50
3.50 5.00
Loo
5.50
l*.5o

Dec.
Dec.
Dec.
Jan.
Jan.

16
23
30
6
13 jo/

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

Low
High
Low
High
Low
I960 - High
Low

3.00
l*.5o
-3.50
5.00
1*.00
5.00
l*.5o
1*.50
1*. 50
l*.5o
l*.5o
l*.5o

1.25 (12/31)
3.88 (11/15)
1.13 ( 8 / 8 )
1*. 88 (12/31)
3.00 ( 3 / 6 )
5 . 1 3 (1/22)
2.88 (11/1*)
3.06
2.91
2.88
2.83
2.81

0
.59
-.35
.86
.13
1.02
.22

(12/18)
(7/19)
(8/29)
(10/9)
(12/1*)
(3/25)
(1*/15)

.81
.67
.70
.55
.53

1/ Weekly rets ehown la that In effect at end of parlod. Dleoeant rate la. for Federal f'eaervti Bank of Hew York.
Stock axohange cell loan rate la going rate on call loans secured by euateaera' atook exchange collateral at
New York City banks. Prime rate la that charged fcy large bunks on ahort-tera loans to business borrowers of
the highest credit etandlry.
2/ Market yield; weekly avern^ee ooeipirted from dally cloning bid prices. Series of 3-5 year Issuea ooncista of
ealeoted notes and bona*.
3/ Average of dally rates put.ll »lud tiy fimn«» ooapanlee for dlreotly placed paper for vnrylnc maturities In the
10-179 di»y ruivi*.
,
Hole.-—Hixhe and lows are for lnUlvldunl series.u,nd may be on different dates for <W f ferent aeries. For spreads,
nlgi! refer a to widest, and low to narrowest.'




STOCK

MARKET




Seoicned

Exhibit F - Tables for Exhibit E

-9-

Stock Market

Date

Common
stock
yields 2/
(per cent)

Stock price
index 1/

1957-59 - High
Low
i960 - High
Low

60.51
39.78
59.50
53.32

November
December
Dec. 30
Jan. 6
Jan. 13 2/

55.1*7
56.83
58.11
58.1$
59.60

(7/31/59)
(12/27/57)
(1/8)
(10/21)

Trading
volume 2/
(millions
of shares)

3.07
4.66
3.18
3.62

4.3
1.1*
4.1
2.2

3.51

3.1
3.7
4.1
3.6
4.4

3.a

3.35
3.32
3.26

Stock market customer credit
Customers1
Dank
Total debit bal- loans to
ances 1*/ "others11 5/
(Mil]Lions of do!Liars)
4,761*
3,ll01
1,373
1,060
2,1(82
3,551*
1,181*
4,365
3,198
1,111
1*,132
3,00k
U,29l*
n.a.
n.a.
n.a.
. n.a.

3,11(1
n.a.
n.a.
n.a.
n.a.

1,153
1,181*
1,181*
1,189
n.a.

n.a,—Not available.
g/ Preliminary.
1/ Standard and Poor's Tmposlte index of 500. common stocks, weekly closing prices, 1941-43=10. Monthly data
are averages of daily figures rather than of Fridays' only. Highs and lows are for Fridays' data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by
Federal Reserve. Yields shown are for dales on which price index reached its high or low.
3/ Averages of daily trading volume on the New York Stock Bxoluinge.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts, excludes
balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reoorting member banks. Excludes loans for purchasing or carrying U. S.
Government securities• Prior to July 1, 1959, such loans are excluded only at banks in New York and Chicago.
Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin.

Mortgage and Bond Yields 1/
FHA
mortgages 2/

1953-58 - High
Low
1959-60 - High
Low

5.63 (11/57)
4.56 (2/55)

i960 - August
September
October
November
December

6.13

6.21* (1/60)

5.57 (3/59)

j Spread between new
Aaa corporate
corporate bonds and
bonds 1/
New* 3/ '\ Seasoned U/ FHA mortf/anes | Seasoned bonds
1*.81
2.71*
5.29
4.29

(6/57)
(3/54)
(9/59)
(2/59)

4.12 (5/57)
2.84 (4/54)
I4..61 (1/60)
4.12 (1/59)

1.96
.54
1.76
.83

4.28
4.25
4.30
4.31
4.35

1.76

.90
—•12

.77
.08

mmmm
6.11

6.09
6.05
6.0lt

Digitized for
4/ MFRASER
o o V 5 Inventors Service. Monthly


1*.37
1*.1*5
ii.60
1*.59
4.79

a v e r t s of daily data.

See Exhibit B.

1.2*9

.09
.20
.30

1.25

.44

1.66

1.1*6

.28

10-

Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital
Corporate 1/
State and local 2/
| I960
1961
| I960
1 1959
1 1959

1961
January
February
March

e/500

577
715
860

821
738
646

766
567
1,031*

739
623
582

639
858
646

894
785
887

731
550
1,033

932
593
1,006

727
962
738

535
740
703

572
602
6#

567
516
165

October
November
December

2/965
a/927
e/850

879
864
900

336
E/468
2/500

597
519
155

1st
2nd
3rd
4th

2,151
2,367
2,127

e/2,7k2

2,204
2,567
1,979
2,612

1,913
2,311
1,863
e/l,3c4

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

4,519,
6,915
e/9,687

L, 771
6,750
9,392

.1,257
6,200
e/7,424

4,674
6,222
7,793

April
May
June
July
August
September

quarter
quarter
quarter
quarter

1st half
>
Three quartos.
Year

e/750

.

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

quarter
quarter
quarter
quarter

Year

1,722
2,150
2,017
e/2,3U2

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

e/8,231

8,630

'

e7 Estimated.
jy7 Preliminary.
1/ Securities and Exchange Commission estimates of net proceeds.
2/ Investment Bahkfcrs Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance
companies.




H.U

Exllibit H

-11-

Other Security Offerings 1/
(In millions of dollars)
Long-•tem
Foreign government 2/
Federal agency 3/
I960
I960
1
1958
1 1959
1
1
1959
JanuaryFebruary
March

2
175
70

01
60
2

196
53

182
150
150

—

199
175

April
May
June

3U
72

ho

58
50

139
198
120

July
August
September

25
1
36

85
1
35,

9
5
17

October
November
December

3k

33
30
70

58
123
7ii

2/181

86

517

99.2

2/1,673

707

2

Year

h2

U18
35U

3hS

365

190
L28
295

233
160
273

April
May

365
351
297

563
1*11
215

July
August
September

280
505
199

2ii6

October
November
December

2Sk

268

fiAl8

Year

—

. 523
—

—

16U
199
—

98
150

—

220

160

lh9

Short--term
State and local government h/
January
February
March

1958
1,163
251

—

2,321

Federal agency 3/

hl9

i;75
511

359
500
I489

371
208
H4J4

357

3SU
26h

509
632
1*35

I486
075
289

209
161
329

h 67

289
li23
369

312
li68
296

727
365
665

1*37
206
330

235
3h3
358

hlS

?31

210282
177.

733
U71
288

137

6,01(7

3,098

399

14,179

2lt3

3,910

£A

817

1,514

Ilk

e/ Preltnlrnry.
1/ Data pre stinted in thie exhibit differ from thosj In Exhibit R In that refunding lajyns, an wall aa niw
capital laauna, e.re included. Long-term Mouritlos are dnflnad 0.3 thoan natnv* ng In m^re than one yenr.

2/ Inoludos securities offered In the Unl tod States foreign /jovorr.monts anl tholr r-j'odt visions end by
ln'.ernatlonal organisations. :our»»i Securities ami Sxuhr.age Commissi,
3/ 13HU13 not r> u/irrai«ad by tho U. S. Gov-rnnar.'.. Souroii lon'.;-t«m, Securltlos and foohongt Cor.nl nil on;
short-term, Federal Reaorve.
4/ Principally tax and bond anticipation not*a, rarrnnts or certificates ar.d Public Homing Authority
not«a. In sotno Instances VHA rote a lrrtlud*d may havs a somewhat longer tone tb<\n on* yo nr.
Source i fiond Buy*r.




—12—

Large" Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Corporate

Month

230
279
262
38k
309
139
U|2
303
#1
266
566
i65
260

1959 - December
I960 - January
February
March
April
May
July
August
September
October
November
December

State and
local government

Other 2/

217
388
283
225
370
23k
561
191
298

70
•100
320
191
71
28
30
75
25
77
150
99

%
k6

1%
222

Large Individual Issues Offered January 1 through 13

Issuer

type 2/

Amount
Coupon
Offering
(millions
Hating
Maturity
net inter- yield
of
est cost
dollars)

CORPORATE
None
STATE AND LOCAL GOVERNMENT
Fulton Co., Georgia
Port of New Orleans, La.
Los Angeles Sch. Dists.,
California
State of California
OTHER
None




G.O.

0.0.

1962-87
14.5
17.0 1966-96/76

3.28
3.77

1.50-3.hS
2.1*0-3.90

Aa
A

G.O.
G.O.

1961-85
30.0
95.0 1963-87/82

3.63
3.68

1.50-3.80
1.95-3.80

Aa
Aa

1-2

-13-

Footnotes
Includes corporate and other security offerings of $15 million and
over; State and local government security offerings of $10 million
and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues and non-guaranteed issues by Federal agencies.
2/ la the case of State and local government securities, G.O. denotes
general obligations; Rev.-Ut., revenue obligations secured only by
income from public utilities; Rev.-Q.Ut., revenue bonds secured
only by revenue from quasi-utilitiei; Rev.-S.T., revenue bonds
secured by re-venue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease paymmts.
1/




-14-

Exhibit J
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasuiy) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation

1 9 # T Dec. 31
i960
Jan. 29
Feb. 29
Mar. 31
Apr. 29
May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30

During month following
date shown
State and
Corporate
Other 2/
local govt.
210
207
301
#9
202
483
237
596
216
576.
ao
260
91

Subsequent to
date shown
State and
Corporate
Other 2/
local govt.

30
45
35

445
210
255
250
243 277 •
180
275
283
212
258

30
30
77
50

2h2

——

412

—

280
372
372
344
357
553
1*55
1,006
731
836
#5 .
335
1,036

515
310
385
280
258
502
380
324
283
336
391
560
682

'

30
45
35
60
30
127
50
——
—

Forthcoming Large Offerings, as of January 13
Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE

Texas Eastern Transmission Corp.
Texas Eastern Transmission Coip.
Lone Star Gas Co.

Pfd. stk.
1st mtg. p.l. bds .
Com. stk.

15.0
30.0
26.2

Brunswick Corp.

Conv. sub. deb.

25.6

"

Montgomery Ward Credit Coxp.
Montgomery Ward Credit Corp.
Consolidated Natural Gas Co.
•^Southern Co.
American Telephone & Telegraph Co.
Commerce Oil Refining Corp.
Liberian Iron Ore, Ltd.
Realty Collateral Corp.

Deb.
Sub. deb.
Deb.
Com. stk.
• Com. stk.
Deb., bds. & com.
Bds. & stk.
Coll. tr. notes

25.0
25.0
45.0
30.0
e/800.0
45.0
30.0
20.0

Jan. 19
Jan. 19
Jan. 23
(rights expire)
Jan. 25
(rights expire)
Feb. 2
Feb. 2
Feb. 8
. Feb. 11
March
(rights expire)
Indefinite
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
G.O.
State of Oregon
G.O.
State of New To lie
G.O.
1
Montgomery Co., Md.
Rev.-Ut.
Contra Costa Co. Wtr. Diet., Calif.
for
FRASER
Rev.-Rent.
Pennsylvania St. Pub. Sch.Bldg.Auth.

Digitized


30.0
63.5
11.0
12.8
20.6

Jan.
Jan.
Jan.
Jan.
Jan.

17
17
17
18
18

Forthcoming Large Offerings, as of January 13 (Cont'd)
Issuer

Ifrpe

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT (Cont'd)
New Yoik City, New York
State of Maryland
State of Connecticut
^Houston Ind. Sch. Dist., Texas
*State of North Carolina
Baltimore, Maryland
#Dallas, Texas
Los Angeles Dept. of Wtr. & Pwr.,
California
Orleans Parish School Dist., La,
Kentucky Turnpike Authority
Dade County, Florida
New York State Housing Fin. Agency

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.-tit.
G.O.
Rev.
G.O.
Rev.

76.5
20.3
29.0
1U.0
10.0
ltf.o
19.0
12.0
10.0
55.0
U6.0
100.0

Jan.
Jan.
Feb.
Feb .
Feb.
Feb.
Feb.

2b

2k

1
6
8
15
20

Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
None
•—Included in table for fh^t time.
e/ Estimated.
2/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over,
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
Note.—Deletions for reasons other than sale of issue: None.




»l6e>

Bxhlblt K
Xields on New and Outstanding
Electric Power Bonds, Bated Aa and A 1/
Date

1952-1959 - High

Low

1959 - July

Aug.
Sept.
Oct.
Nov.
Dec.
19^0 - Jan.
Feb.
Mar.
Apr.
May 10
12

Aa-rated offering yields
Amount above
Actual

5.30 (12/8/59)
2.93 (3/3V5U)
*li.93
lt.83
5.13^/
*5.08
*5.30 '
5.09
lt.82
lt.91
ii.88

.

87
-3
31
23
:
63
1,5
25
37
32

29

July 8

L82
L8U

25
27

13

Sept. 15
23

28
Oct, 5
21
Nov. h
16
17
18
Dec. 7

5.45 (9A8/59)
3.00 (3A7/5U)

%
t'

27
17
2U
22

It. 78
i».85

33
liO

5.00

. 149

123
-15

5.07

17

*5.65
5.33

60
1*3

4S/

51

>.97
5.1U
5.10

5.20

25

June 17
28

Aerated offering yields
Amount above
Actual
(per cent) seasoned yields
(basis points)

li.95

lt.93

28

3I
26
33
11

It. 88
It. 80

11
8
2lt

I1.68

26

5.05

U3

*—Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond Survey.
Except where indicated, the actual yield figure and the amount above eeaeoned
yields are averages of offerings during the indicated period and of the differences between these new offering yields and yields on seasoned issues of similar
quality for the same day. Average maturity for the seasoned issues varies fro*
26 to 28 years.
2/ Provides for a 5-year period during which issue may not be called for refunding
at a lower coupon rate. Monthly averages so marked include one or more Issues

with such a provision. Other issues have no such provision.



-17Exhibit L
Sources and Uses of Funds By
Life Insurance Companies

u. s.
Cash

Govt.
ities

Value of assets at
end of period:
•1,273
19^6 - Dec.
1,29k
1957 - Dec.
1,363
1958 - Dec.
1,327
1959 - Dec.
1,233
1960 - Nov.

Uses of funds 1/
State and
Busilocal govt. Mortness
gages
secursecurities 2/ ities

Other

Total
sources
or uses

32,99k
35,271
37,092

12,272

95,8kk

,521

"
17' H I

(In millions of dollars)-

2,23k

6,8k8
6,W

39,552
42,133
i^,612
1*6,977
148,708

-17
55
110

11
19
-1U2

309
137
308

26
32
12

186
11*5
291

72
88
33k

587
1*76
913

1959 - Jan.
Feb.
Mar.
Apr.
May
June
• July
Aug.
Sept.
Oct.
Nov.
Dec.

-81
-27
-111
-2k
10
3
-15
19
-31
22
33
99

303
-71
-185
22
-16
11
13
95
-185
-22
-131
-168

188
223
251
2h2
193
2l*2
211*
75
95
208
207
227

53
30

119
139
136
116
135
157
211*
171*
211
251
21*0
315

-17
17k
108
80
97
60
208
101
95
92
13k
226

1*98
1*96
728
k9k
200
559
1*99
722

I960 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept,
Oct.
Nov.
Dec.

-91
-53
-30
39
-12
33
12
k
-51
-35°

27k
196
21*2
225
203
192
63
226
179
211*
208

82
207
115
95
128
211
206
175
122
11
102

Changes:
1958 — Oct •
Nov.
Dec.

7,519

7,028
7,182

128
125
-167
-85
-62
-102

P

-I4O
-6

-62
23

hjoU

13 it
231
125
167
168
1*0
198

2,377
2,691

3^5

66
1*9
79
23
9k
15
8

16
23

20
25
35
21
26
13
10I*
k3
82

11

13,206 101,309

lit, 61:0 107,580

Uses of funds represent net changes in assets and therefore reflect ne
than gross, uses.
2/ Includes securities of domestic corporations only.
Source• —Institute of Life Insurance.

l/




lis',056

576
1*61*
299
1*29
511*
1*69
628

-18Exhibit M
Sources and Uses of Funds By
Savings and Loan Associations

Cash
Value of assets
at end of period
1956 - Dec.
1957 - Dec.
1958-- Dec.
1959 - Dec.
19&) - Nov.
Changes:
1958 - Oct.
Nov.
Dec.
1959 - Jan,
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct,
Nov.
Dec.
IS60 — Jan.
Feb.
Mar.
. Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

Uses of funds 1/
Total
u. s.
Mort- . Other sources
Govt,
gagesi/ assets or uses
ities

Sources of funds
Net
Borrow- Other
change
savings ing 3/
capital

(In millions of dollars)
2,119
2,146
3,585
2,201
2,301

2,782
3,173
3,819
U,U7U
4,577

35,775
40,049
45,627
53,093
59,445

2,199
2,770
3,108
3,707
4,173

42,875
48,138
55,139
63,475
70,496

37,148
41,912
47,976
54,556
60,823

1,347
1,379
1,444
2,388
1,870

4,380
4,847
5,719
6,531
7,803

-107
42
335

104
5i
37

605
470
528

137
102
-53

739
665
847

507
480
1,072

58
41
212

174
144
-437

-298
-26
-2
-182
26
245
-1*32
-43
-53
-68
65
381

297
97
76
105
23
-4
104
17
-7 7
-34
-26

402
427
593
705
754
840
7%
727
670
621
459
485

-55
80
98
151
178
10
-108
22
65
88
140
-70

346
578
765
779
981
1,091
347
723
675
648
630
773

434
408
529
420
604
1,090
190
394
444
399
483
1,185

-181
-56
-5
97
63
313
31
118
148
136
57
223

93
226
241
262
314
-312
126
211
83
113
90
-635

320
398
545
566
634
779
640
712
649
' 586
523

-113
62
100
104
209
-5?
-151
2
57
• 74
174

94
494
667
64l
939
908
219
718
732
781
828

468
409
623
372
630
1,216
149
. 489
602
651
658

-453
-125
-127
38
3
211
-126
21
48
-21
13

79
210
171
231
306
-519

-314
-33
49
-30
81
329
-236
31
23
104
96

201
67
-27
1
15
-148
-34
-27
3
17
35

1/

208
82
151
157

Uses of funds represent net changes in assets and therefore reflect net, rather than gross, uses. Savings and loan associations do not hold business securities
and data on holdings of State and local government bonds, presumed to be small,
are not available.
2/ Prior to 1957, data adjusted to include mortgage pledged shares as currently reported,
3/ Advances from Home Loan Banks and other borrowing.
Source.—Federal Savings and Loan Insurance Corporation.




-19-

Exhibit N
Sources and Uses of Funds
By Mutual Savings Banks

Cash

Uses of funds 1/
Busi- State &
U. S.
local
ness
MortGovt,
govt.
securgages
securities
ities
ities
2/

m

tine of assets
i end of period
1956 - Dec.
1957 - Dec.
3,958 - Dec.
1959 - Dec.
1960 - Nov*

920
890
921
829
788

langes:
1958 - Oct.
Nov.
. Dec.

-8 . -92
-32
-38
-2
101

1959 - Jan. ]/ -96
18
Feb.
Mar.
45
-114
Apr.
8
MayJune
43
July
-79
Aug.
3
-2
Sept.
-27
Oct.
20
Nov.
111
Dec.
1960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
'

-131
37
41
-86
42
108
-69
-6
22
-8
9

6,861*

6,281

Sources of funds
Net
change
in
deposits

Other

19,529
698 33,311
20,951
761 35,168
23,039
855 37,779
24,768
910 38,942
26,552 1,015 40,336

30,032
31,695
34,041
34,983
35,968

3,279
3,473
3,738
3,959
4,368

Other

Total
sources
or uses

(In millions of dollars)
3,523
4,331
1,973
4,849
5,023

669
682
725
722
677

-6

-3
-1
-7

195
151
174

-46
43
-3

40
123
309

95
42
418

-55
81
-109

208
125
175
155
161
145

-58
32.
38
-32
45
39

175
216
330

122
113
313

53
103
17
-16

-55
-28
'23.

17
-4
41
-33
10
19
4
-1
8
-20
-8
-24

160
137
124
132

-12
-9
52
-19
13
57
38
-8 •
32
-4
34

-6
-9
3
13
-23
-4
-4
-5
1
-6
-5

159
116
150
129
161
169
159
206
196
168
171

119
39
62
-44
13
-85
-13
-12
-32
-281
-85
-12
-9
—11
32
-148
-80
• -93
-48
30
-32
-156
-68

47
-16
6
-31
58
-20
-47
13

-rZ

-12

S

33
31
-37
42
-12

-12
43
41
-21
63
-59
42

6

14
-25
13

-10

6

217
161
32
192
163
-283
65
218

120 =
202
-54
80
197
-187
-27
340

-11
167
319
-132
176
178
118
223
233

-68
50
320

154

LA 5

221
21
105
278
56
39

-9J
86
112
=34
-96
92
-122
57
117
-1

-37
118
-43
97
118
-45
-87
!
115

Uses of funds represent net changes in assets and therefore reflect net, rather

'

includes Canadian government and political subdivisions, International Bank for
Reconstruction and Development, nonguaranteed Federal agency and other bonds as
well ae corporate bonds and stocks.
' Adjusted to eliminate the effect of a consolidation of a large savings bank with
a commercial
bank.
•
'

lUrce.—Nat. Assoc. of Mutual Savings Banks and Federal Deposit Insurance Corp.



January 16, 1961
-20-»
Part II - Canada
Canadian interest rates eased during the week with an active
demand for securities resulting from the high post-Christmas liquidity.
The Bank of Canada was a modest seller of securities but the chartered banks
added to their bill holdings. The money supply has increased in December
and January. The Canadian dollar leveled off last week at about 100.5
(tJ.S. cents) last week with little activity reported in the market.
Industrial stock prices rose further through the week.

-

Money market. The average yield on the 3-month Treasury bill
at last Thursday's auction declined by 16 basis points from 3«3U per cqnt
on January 5 to 3.18 per cent on January 12. The yield on the 6-month bill
also declined during the week from 3.63 per cent on January 5 to 3»U8 per
cent on January 12. The Bank of Canada sold $9 million of Treasury bills
during the week, and the general public sold $2li million, while the chartered
banks purchased $39 million (see Table). The average yield on day-to-day
loans during the week ending January 11 was 2.80 per cent, no change from
the previous week.
There was a narrowing of the spread favoring the Canadian short
Treasury bill from 1.07 per cent a week ago to 0.91 per cent last week as
a result of the decline in the Canadian yields, However, there was little
change in the net incentive on a covered basis (0.66 per cent per annum)
because the decline in the discount on the forward Canadian dollar offset
the decline in the Canadian yield (see Table).
Bond market. Bond yields declined during the week for all
maturities. The spread between selected comparable Canadian and United
States securities (Thursday yields for bills and Wednesday yields for
bonds) were as follows (figures in parenthesis refer to the previous week):
0.91
0.98
0.82
1.29
1.50

per
per
per
per
per

cent
cent
cent
cent
cent

on
on
on
on
on

a 91-day bill (1,07)
a 182-day bill(l.l5)
an 80-year bond (0.99)
a 30-year bond (1.37)
a 35-year bond (1=59)

The Bank of Canada sold $12 million of bonds and the general public sold
$11 million, and the chartered banks sold $2 million; the Government accounts
purchased $22 million and sold $6 million of bills (see Table).
The press reported a heavy demand for the $10 million Hamilton
issue offered as follows: $3.2 million, 5-3/U per cent, 1- to 7-year bonds;
$1.7 million, 6 per cent 8-to-lO'sj and $5.2 million, 6 per cent, ll-to-20's,
all at par. The offering price for the 6 per cent, $5 million, 20-year
Newfoundland issue was 98-1/2 to yield 6.13 per cent. Saskatchewan is
reportedly gathering views from investment men regarding the possibility of
issuing $U-$5 million parity bonds.




There was another increase in rates on Bank of Nova Scotia
term notes which were introduced last September. The new rates, effective
January 9» 196], are the highest since the notes were first issued in
September i960 (see Table).
Chartered bank loans and money supply. Chartered bank loans,
unadjusted for seasonal factors, rose $2U million last week, contrary to
normal seasonal expectations. The money supply also expanded controlseasonally, with an unadjusted increase of $U2 million.
Foreign exchange. There was little change in the spot rate on
the Canadian dollar through the week with only narrow fluctuation around
100.5 (U.S. cents). The forward discount on the Canadian dollar decreased
somewhat from O.liU per cent per annum on January 5 to 0.25 per cent
on January 12.
3 months
Per cent
Spot
per annum
forward
January 5
6
9
10
11
12

100.L69
100.U69
100.500
100.5U7
100.750
100.625

100.359
100.391
100.138 100.500
100.688
100.563

-0.1tU
-0*31
-0.25
-0.19
-O.25
-0.25

Stock, exchange. Prices of industrial stocks on the Canadian
exchanges continued to rise through the week ending January 6. During the
period from December 5 to January 6, the Toronto and Montreal indices showed
a rise of from 6 to 6.5 per cent compared with a 5*5 per cent rise in the
Standard and Poor industrial average for New York. The following table
,compares the three industrial indices:
New York
Toronto
Montreal
Standard &
High
Low
Dec. 5
12
19
27
30
Jan. 3
a
5

6

532.58
172.38
U99.31
507.38
511.UU
518.31
52U.91
52a.l3
527.81
528.56
529.69

320
250.3

26a.a

267 .a
268.5
2?a.6
276.7
276.1
280.2
281.3
282.0

65.00
55.98
58,58
60.3a
60.62
60.97
6l.a9
60.87
61.77
62.00
61.86

The total value of stock shares sold on all Canadian exchanges during
the week ending January 6 was $9,855 million, somewhat higher than recent weeks.
British Commonwealth Section
Division of International Finance
Board of Governors of the Federal Reserve System




Selected Canadian Money Market and Related Data
Canadian don*?
,
3-mo. discount (-1
forward premium (+)f*/

3-iao. Treaa. bills
Spread
over U.S.
1959 - High
Low
i960 - High
Low

6.16
3-25
' 5oiU
I068

k.63
2.10

2.96
0.30
1.62
-0.82

105:51
102.58
105.27
100.33

Dec. 22
29
Jan. 5
12

3»U6
3.25
3»3U
. 3.18

2.22
2.17
2.27
2.27

1.2U
1.08
1.07
0.91

101.28
100.33
100.U7
100.63

.-

UoU9

2.80

—

101.03
100.22
100.36
100.56

Net incentive to
hold Can.
bill*/

0.99
-0.91

1.99
-0.57

-0.91
-0.U3

0.33
0.65
O.63
0.66

-o.UU

-0.25

a/ Average yield at weekly tender on Thursday.
2/ Composite market yield for the U.S. Treasury bill on Thursday close of business#
c/ In U.S. cents.
3 / Spread between spot rate and 3-month forward Canadian dollar on Thursday
closing, expressed as per cent per annum.
e/ Spread over U.S. Treasury bill (column 3)% plus 3-month forward discount or
premium (column 6).
Selected Government of Canada Security Yields
6-mo. Treaa.bills
Spread
Canada
u?s!l/

1959 - High

Low

1960 r High

Low

Dec. 22
29

Jan. 5
12

6.2k

5 oil
5.33

1.99

3.68
3.5U
3.63

3oU8

Intermediate
bonds (8 yr.)
Spread
OirnyU

Long-term bonds
(26 Tear)
135 year)
spread
Spread
Cw^da
Canyla

A

5.27

1-37

U.5o
5.55

1.11

-0.86

U.09

0.21

1.26

U.69
U.7U
U.70
U.68

0.92
1.00
0.99

1.17
'1.15
0.98

0.82

.

5.30
U.UU

Mk

w

5.12
U.63

1.36
0.85

5.19
5.19
5.19
5.17

1.37
1.37
1.29

1.36

5.05
U.73
5.28
U.68

5.23
5.23
5.23

•5.20

a/ Average yield at weekly tender on Thursday.
V Spread between Canadian auction rate and composite market yield of U.S.
bill on close of business Thursday.
0/ Government of Canada 2-3A per cent of June 1967-68.
Z/ Spread ov$r U.S. Government 2-1/2 per cent of 1963-68.
e/ Government of Canada 3 - l A per cent of October .1979•
l/ Spread over U.S. Government 3-1/U per cent of 1978-83.
"' Government of Canada 3-3A per cent of Septentoer 1996 - March 1998.
# 1' Spread over U.S. Government of 1995#




1.61
0.95
1.56
1.57
1.59
1.50

Canada: Changes in Distribution of Holdings of Canadian
Government Direct and Guaranteed Securities
(millions of Canadian dollars, par value)
Bank of Canada
Treas.
Hill
Bonds
fov. 10
17
2h
)ec. 1
8
15
22
29
Tan. 5
12

krarcei

- 1
+ 3
+ 1
+ 10
• 9
- 2
5
- 3
+ 2
- 9

Government
Total
+ 2
- 1
+ 8
+ 2k
- U
- 6
-103
+ 2
- 11
+ 16

- 1
+ 10
- 3
+ 3
- 3
+ 1
- 9
0
- 2
- 12

Chartered banks
TrOBS#
Bonds
bills
+
+
+
+
+

6
28
30
21
7
13
18
6
18
39

+
+
+
+
-

General public
Savings Treas.
Bonds
bonds
bills

7
6
3
8
28
5
23
lU
12.
2

+199
+131
+271
4 U
- U
- 13
- 11
- 8
- U
+ 16

+
+
+
+
+
-

- IS
- ?u

Bank of Canada, Weekly financial Statistics*

Yields on Bank of Nova Scotia Term Notes
(per cent per annum)

1 year
2 year
3 year
U year
5-6 years
Source:

Sept.

Oct.

Nov.

3.75
U.oo
U.25
U.75
5.oo

3.25
3.75
U.oo
U.50
U.75

3.50
U.OO
U.25
U.50
U.75

The Financial Post.




Jan. (1961)
U-iA
U-l/2
U-3/U
5
5

6
26
29
3
1
19
11

+
+
+
-

7
17
5
27
31
U
62
2k
10
11

January 16, 1961.

^-Appendix 1
United Kingdom:

Money and Capital Markets during December

Despite two cuts in Bank rate in the past three months and continuing
declines in the Treasury bill rates, yields on long-term British government
securities rose further in December. In early January Consols showed their
highest yields in at least 100 years. The contrast between movements in bill
and bond yields since early October is summarized in the following security
yields (in per cent per annum)s

Treasury bills

I960
Jan. 1
3.73

Bonds$
1966 (5-1/2%)
1975 (350

2.00
5.30

2012 (5-1/2%)

Undated*
War loan (3-1/2%)
Consols (2-1/2$)

Oct. 7
5,56
6.00
5.98

Dec. 30
ho35
5.51

6.11

5.91
5.39
5.0U

5.83
5.56

5.9U
So 70

jrmrru-i/2%)
The substantial rise in bond yields in the course of I960 can also be seen
in the figures.
During December, the British bill remained about 2 per cent above
the New York bill. With the exchange risk covered, the London bill showed a
1 to 1-l/U per cent higher return to the investor.
Two pieces of evidence suggest that, at least on a net basis, the
capital inflow may have come to a hplt in December. First, Britain's reserves
adjusted for special private and governmental debt transactions showed a
deficit of $62 million in December, the first such deficit in nearly a year.
Secondly, security sterling which had risen sharply in the fall as foreign
residents bought British bonds fell by more than two cents in December„ Press
reports suggest that substantial foreign purchases of bonds occurred during
the " autumn months; perhaps in anticipation of a general decline in bond yields
in Britain. Sales by foreign holders have contributed to recent price declines
in the gilt-edged market.
Growing pressure on credit availabilities is suggested in the
decline in London clearing bank loans between mid-November and mid-December.
The London clearing banks are now entering the tax-gathering quarter (when




there are seasonal drains on their liquid assets) with a liquid-apset
ratio well below the usual December level. A number of newspaper reports
have discussed, among other alternatives, whether the banks will bf forced
to sell more gilt-edged securities and whether the authorities will make
releases from Special Deposit balances. A further slight fall occurred in
instalment credit during the month.
Renewed activity in the bullion market pushed up gold prices
during December and early January. The spot sterling rate declined in
December but strengthened in early January. The trade returns for November
continued to be unfavorable.
Money market conditions. After declining through the first half
of December, money market rates held steady in late December and early
January. The yield on Treasury bills declined from U.63 per cent on
December 2 to U.35 per cent on December 23 and subsequently remained at
that level through January 6 (see Table). The yield on British Treasury
bills exceeded the U.S. Treasury bill yield by between 2 and 2-l/U per cent
through late December and early January.
The incentive to hold the London bill rather than the U.S. bill
(with exchange risk covered) remained between 1 and 1-l/U per cent throughout the period (see Table),
Gild-edged market. Sluggish conditions in the gilt-edged market
brought further increases in yields on British Government securities; longterm yields reached their highest levels in at least 100 y e a r s . O n January
12 the yield on 2-1/2 per cent Consols went abovtt the 1921 all-time high,
as may be seen in the following price and yield figures:
Price
1921
1956 (Dec. 1)
1957 (Sept. 20)
I960 Dec. 1
23
1961 Jan. 5
6
12

L3-5/8
50-lA
U5
U5-1/U
hh
13-15/16
13-11/16
U3-9/16

Yield
5-73
U.98
5.56
5.52
5.68
5.69
5.72
5.7U

Yields on Government securities in all maturities reached highs for the
year in the closing days of I960 and have continued to rise in early January
New capital issues on the London market (excluding Treasury
operations) during the first eleven months of i960 totaled £529.9 million
compared with sWiO.L million in 1959, according to the estimates of the
Midland Bank. Total new issues were broken down as follows (in millions
of pounds):




Borrowers

1957

1958

1959

i960

United Kingdom
Overseas

268.2
U5.U

2U7.9
59.9

107.6

190.3
39.6

Total

313.6

307.8

UUo.U

529.9

The Government of Northern Ireland has issued a £7 million
Exchequer Stock, 1977, at 6 per cent and priced at 99. This stock is
offered as conversion to holders of the £7 million Northern Ireland 3 per
cent Loans Stock, 1956-61.
^
Trade balance. Trade returns for November showed no improvement.
Seasonally-adjusted figures were (in millions of pounds):
Trade
Exports
Imports
balance
I9605 January
May
September
October*/
November—/

308
298
205
• 252
3Ul

368
389
386
385
lill

- U8
- 80
- 77
&122
- 70

a/ Affected by tally clerks1 strike. These two months
shdulfi probably be considered together.
However, the Board of Trade's detailed analysis suggests that imports may
have finally reached their peak. The trade deficit combined with reduced
"invisibles" earnings produced a £101 million current account deficit in
the third quarter of i 9 6 0 compared with a surplus of £ U 3 million a year ago.
Bullion market. After declining to $35.Ul per fine ounce on
December 2, the price of gold on the London market rose steadily through
December and early January reaching $35.77 per fine ounce on January 13.
Political events in Europe contributed to the demand for gold.
Sterling
fixing price
December 2
9
16
23
30
January 6
13

— 2 5 2 / 252/9
253/253/6
25k/25U/3
25U/10

Spot
sterling

Dollar
fixing price

Trading
range

281.05
280.93
280.78
280.62
28d.35

35.1123
35.5025
35.5186
35.5685
35.6OU1i

35.U00-35.U50
35.560-35.600
35.510-35.530
35.550-35.580
35.510-35.620

280.68
280.73

35.681k
35.7696

35.68o-35.68U
35.730-35.770

Commercial bank loans. Loans of the London clearing banks declined
by £9.2 million in the month to mid-December} except for August i 9 6 0 , bank
loans have not declined since the 1956-1958 credit squeeze was relaxed.
The liquidity ratio was at 31»9 per cent compared to 3U.2 per cent in midDecember 1959. Between August and November i 9 6 0 , loans by members of the




British Bankers' Association rose by Z$h million to £3*570 million»
Excluding loans to the nationalized industries, the rise was only £38
million, the smallest increase in any quarter for nearly three years.
Instalment credit. The total hire-purchase debt declined by
£3 million in November, compared with falls of £7 million and £8 million,
respectively, in October and September. Between March 195>8 and May I960,
when instalment credit restrictions were reimposed, there was an average
monthly increase of £20 million. The whole of the drop in November was in
the debt owed directly to finance houses, mainly for vehicles, which now
stands at £620 million. The debt owed directly to household goods shops
was unchanged at £322 million.
Foreign exchange. Spot sterling declined steadily through
December from 281.22 U.S7 cents to 280.3U U.S. cents; it regained strength
in early January and closed at 280.73 U.S. cents on January 13 (see Table).
The discount on 3-month forward sterling was unchanged in
December (see Table). Security sterling fell from a small premium about
spot sterling of 281-1/8 U.S. cents in early December to a substantial
discount of 278-3/8 U.S. cents in early January.
The sterling area's reserves of gold and foreign exchange rose in
December by £23 million to £1,15U million. If the special capital movements connected with the inflow of £131 million from the Ford Motor Company
for the purchase of the minority shareholding in Fords (U.K.), the outflow of £67 million to the U.S. and Canadian Governments in respect of
loan service and the outflow of £17 million to the International Monetary
Fund for the purchase of sterling are excluded, the reserves declined by
£22 million. This is the first such fall in reserves since January.
Stock market. On December 9, stock prices reached a I960 low
of 295 after a 9-week decline of about 12 per cent. Prices moved up
thereafter. The price index closed the year at 305 compared with 338 on
January 1, I960.

British Commonwealth Section
Division of International Finance
Board of Governors of the Federal Reserve System




United Kingdoms

Date

Treasury Bill Yields and Exchange Rates

3-nOo Treasury bill
Discount
,
, , Differon 3-moe
U.K.*/ U . S ^ /
ence
sterling^/

1959 - High
Low
1960 - High
Low

3,6
3»0
So68
2.13

k.7
2.6
k.59
2.0$

-1.1
0o4
3-63
-0.8k

Nov. 11
18
25
Dec. 2
9
16
23
30
Jan. 6

k.77
1.67
U.6U
U.63
k.k8
U.38
1.35
U.35
k.3k

2.U5
2.32
2.37
2.30
2.39
2.25
2.30
. 2.33
2.26
2.22
2.2k
2.1k
2.18 "
2.17
2.20
2.15
2.28
2.06

Net
incentive
to hold
.
U.K. bill*/

Exchange rate
Spot
Discount
sterling
on 3-mo.
«/
sterling*/

—
=(P) .61
2.33

--1.95
- .23

-=
281.58
279.83

1.6k
(P).k7

1.62
l.kl
1.15
1.02
0.97
1.01
0.96
0.90
1.03

0.70
0.89
1.10
1.31
1.05
1.13
1.21
1.25
1.03

281.58
281.29
281.26
281.12
280.86
280.71
280.57
280.3k
280.72

1.1k
0.99
0.81
0.72
0.68
0.71
0.67
0.63
0.72

!
mj Average yield at Friday weekly tender.
%f Closing market yield for Friday in New York.
c/ Spread between spot and forward rate in per cent per annum.
a/ #et of difference in bill yield less discount on 3-month sterling.
e/ Spot rate in New York market in U.S. cents.
~tj Spread between spot and forward rates in U.S. cents.

United Kingdoms

Selected Capital Market Yields

6-year
bond*/

l5-year
bonc^/

War ,
loan®/

I960 - High
/
Low -

6.11
k.93

6.00
5.33

5.9k
5.33

5.70
5.03

k.96
3.7k

l.k9
0.63

338.6
29k. 6

Nov. 11
18
25
Dec. 2

5.98
5.97
6.00
6.05
6.05
6.08
6.08
6.11
6.11

5.82
5.82
5.83
5.83
5.86
5.88
5.90
5.91
5.97

5.73
5.67
5.7k
5.80
5.88
5.90
5.93
5.9k
5.95

5.kk
.5.39
5.k6
5.52
5.59
5.66
5.68
5.70
5.70

k.52
k.k9
k.66
k.71
k.96
k.90
k.82
k.82
k.73

0.92
0.90
0.80
0.81
0.63
0.76
0.66
0.88
0.97

313.3
315.9
308.7
301.8
29k.6
299.6
305.3
30k .7
310.6

L
23
30

a/
5/
t/
d/
e/
T/
%/

Consols

Share
yields/

Share
pricesg/

5-1/2 per cent Exchequer9 1966.
3 per cent Savings Bond 1965-75=
3-1/2 per cent War Loan (undated).
2-1/2 per cent Consol (undated)
Financial Times.
uurerence between yield on 2-1/2 per cent Consols and share yield.
Financial Times.




UNITED KINGDOM

WEEKLY SPOT AND

FORWARD STERLING RATES

J MONTHS fOIWAlD

Million!

MONTHLY TRADE BALANCE
SEASONAUY ADJUSTED

CHANGE ON

OFFICIAL FOREIGN EXCHANGE RESERVES

ADJUSTED CHANGE
«d.

L

M

I




„.dd

R

N

L O J L

ACTIIAL (MANGE

T il ri fl.

Il h l i L ^

of

t