View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not-for Publication

DECONTROLLED AFTER SIX MOUTHS

H.lij

January 30, 1958
CAPITAL MARKET DEVELOPMENTS
(Including Quarterly Review of State and
Local Government Security Financing)

Large public security offerings for new capital during the
week ending January 2 i consisted of a corporate issue for $75 million,
l
State and local government issues -totaling $lb9 million and a foreign
government issue for $15 million. This week the calendar includes
State and local government issues amounting to $132 million and a
foreign issue for $50 million. No large corporate issues for new
capital are scheduled for sale.
On Tuesday, Bell Telephone Company of Pennsylvania sold a
$50 million 3 3 A per cent debenture issue, proceeds of which will be
used to refund an equal amount of 5 per cent first and refunding mortgage bonds due October i960. The company had originally scheduled the
sale of the debentures for late July 1957, then postponed it because of
market conditions. The issue was offered to yield investors 3*65 per
cent. In early December, another'Bell Telephone Company had offered
a similarly rated issue to yield 3.98 per cent.
Bond yields - Yields on outstanding corporate and State and
local government bonds declined further last week, while U. S. Government bond yields increased. Yields on State and local government and
high-grade corporate bonds are now from 9 to 17 basis points lower than
their 1957 lows — March for corporate issues and February for State
and local government bonds.
Estimated February volume - The volume of new capital issues
is not 'expected to change much in February from that in January* The
corporate volume is estimated at about $800 million, one-fifth below
the volume in February last year. Large publicly offered issues, including the issues of Royal Dutch Petroleum Company and General Motors
Acceptance Corporation, are expected to total over $1*00 million. There
is some doubt, however, about the proportion of the Royal Dutch issue
which will be sold to American investors, and it is possible that a
portion of the proceeds for the GMAC issue may be used for refunding
purposes.
State and local government issues for February are currently
estimated at $750 million. This volume would be the same as the estimate for January (which has been increased by $50 million over earlier
estimates) and more than 30 per cent greater than the volume in February
1957.




H.lh

-

2

-

Stock prices - Stock prices, as measured by the Standard and
Poor's index of 500 common stocks increased last week, closing at J4I.7I
on January 2lt. Prices.increased slightly, on balance, in the early
part of this week, closing at Ul.88 on Wednesday.
State and Local Government Security Offerings in 1957
Security offerings by State and local governments, including
borrowings from the Federal Government, reached a record volume of
^
$7*1 billion of long-term security issues in 1957, compared to about
$5.5 billion of such financing in 1956, as•shown in the table, on the
following page. 1/ Excluding Federal Government loans (estimated at
$32b million in 1957 and $lli6 million in 1956) the increase in State
and local borrowing last, year would still be over 20 per cent.
The increased volume of financing in 1957 reflected mainly
the rise in the number of medium-sized issues. In fact, there was
only one issue over $100 million — the $250 million negotiated offering of Chelan County Public Utilities District No. 1, Washington sold
near the end of the year. A substantial number of sizable issues postponed earlier in 1957 were successfully offered later in the year.
Purpose of issue - As in other recent years, more issues
were sold for school building construction than for any other purpose„
The record volume of school bonds amounted to $2.5 billion, and accounted for over 35 per cent of the total„
r
New financing for highways, bridges and tunnels, aggregating
$1.0 billion, was two-fifths greater than in 1956. Issues to obtain
funds for sewer and water purposes totaled $1.0 billion, compared with
$800 million in 1956. Miscellaneous public service enterprise bonds
were the only type in smaller volume during 1957 than in the previous
year.
.
Type of issuer - All levels of government sold a greater
volume of securities in 1957 than a year earlier. Municipalities sold
the largest volume, accounting for about one-third of all issues last
year. Offerings of State governments, representing 20 per cent of the
total, showed the largest percentage increase from 1956 — 80 per cent.
1/ Comparison with earlier years is difficult since the Investment Bankers Association of America's data, available beginning July 1956,
are believed to be more comprehensive in coverage and more detailed in
classification than earlier data. It should also be noted that Federal
Government loans are included in the Board's series. Estimates of the loans
have been compiled by the IBA since mid-1956, but are not in the ISA's total
of State and local security issues. The inclusion of these loans in
the Board's series prior to mid-1956 is thought to be less complete than in
the more recent estimates.




H.lU
Long-Term Security Issues of State and Local Governments
1953-1957
(In millions of dollars)
1957

1956

1955

1951

1953

Issuing authority:
State
County and township
Municipality
School district
Special authority
Unidentified 1/

1,508
L33
2,322
1,597
1,276.

818
328
1,811;
1,111
1,103
351

1,108
ii72
1,313
1,005
1,097
683

2,Ob7
bb2
1,601
828
1,163
587

767
271
1,052
83k
2,091
513

Total

7,135

5,525

. 5,976

6,969

5,558

7,08b
.2313
1,039
2#
135
1,018
503
333
1,211;

5,159
T75B2
701
258
61
817
663
110
817
351

5,911
T75T6
1,362
570
98
712
169
169
637
680

6,789

5,b77

2,136
b56
77
67b
597
162
681
576

• 1,588
506
133
6b 7
156
lbl
bb5
5b2

Purpose of issuer.
™~
New capital total
Schools 2/
Highways, bridges, and tunnels
Residential buildings
Hospitals and institutions
Sewer and water
Misc. public service enterprises
Veterans' aid
Other
Unidentified 1/

Refunding
Total

Type of issue:
General obligation
Revenue
Utility
Quasi-utility
Special tax
Rental
Public Housing Authority
Federal Government loans 3/
Total
~

-

.

50

66

65

180

82

7,135

5,525

5,976

6,969

5,558

b,785
1,?#

3,570
1,610
n.a.
n.a.
n.a.
n.a.
.199
lb6

3,770 • "3,380
3,205
1,730

3,b95
h M
n.a.

5,525

5b
289 .
18b
66
32b
7,12

b7b
2

n.a.
n.a.
n.a.
37b
9

b96
9

5,976

6,969

5,558

1/ Issues of less than $506,600 not further classified.
?/ Data for years prior to 1956 probably understate school issues by about onefourth because of unclassified small issues.
3/ Coverage for 1956 and 1957 is broader than for earlier years.
Note«—Details may not add to totals because of rounding.
Source.—1953-June 1956, Bond Buyer and.Federal Reserve; July 1956-1957, Investment
Bankers Association of America" Data for 1956 and 1957 not strictly comparable with data
for earlier years.




H.lli

- i t

Type of Issue - General obligations continued to be the most
important type of issue during 1957* The volume of such flotations
totaled $lw8 billion — a record amount, and was one-third greater than
in 19$6. Revenue bond financing also increased, but at a somewhat lower
rate. Sale of Public Housing Authority bonds jwas very small in.1957 in
comparison with other recent years.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

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




EXHIBIT A

H I G H - G R A D E B O N D YIELDS

Date

Corporate
Aaa 1 /

U. S. Govt,
long-term 2/

State and
local govt.
Aaa 3 /

Spread between
U. S. Govt, and
Corporate 1 State and
Aaa
1 local Aaa

(Per cent)
1953 - High
195b - High
1955 - High
1956 - High
Low
1957 - High
Low
December 27
January 3
January 10
January 17
January 2k

3.U2 (6/19)

2.99 (1/9)
3.09 (1/8)

2.85 (h/23)

3.17
2.91
3.79
3.07
k.lk

(12/23)
(1/7)
(12/28)
(3/2)
(9/27)

^ 6 6 (h/12)
3.73
3.68
3.65
3.61
3.57

3.19
2.7k
2.71
2-1*5
2.97
2.6k
3.15
2.8k
3.76
3.18
3.23
3.22
3.20
3.21
3.27

(6/5)
(12/31)
(1/8)
(8/6)
(8/5)
(1/7)
(12/28)
(2/17)
(10/18)
(2/8)

2.73
1.98
2.21
1.90
2.3k
2.05
3.05
2.17
3.k5
2.76
2.8k
2.86
2.86
2.68
2.65

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)'
(5/26;
(12/27)
(2/23)
(8/29)
(2/21)

.38
.20
•k3
.30
.27
.11
.kl
.12
.60
.27

.83
.33
.62.
.30
.76
.57
.71
.32
.k7
.15

.50
.k6
•k5
-1*0
.30

.39
.36
.3k
.53
.62

1 / Weekly average of daily figures. Average terra of bonds included is 25-26 years.
? / Weekly average of daily figures. The series includes bonds due or callable in
10 years or more.
3/ Thursday figures. Only general obligation bonds are included; average term is
20 years.
N o t e . — H i g h s and lows are for individual series and may be on different dates for
different series.




LOWER-GRADE

BOND YIELDS

CORPORATE Baa

IND LOCAL GOVT. Baa

Date

Corporate
Baa 1 /

State and
local govt.
Baa 2 /

Spread between
Aaa and Baa
State and
Corporate
local govt.

(Per cent)
1953 - High
195b - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
December 27
January 3 .
January 10
January 17
January 2b

3.89
3.50
3.7b
3 .M,
3.63
3.15
b.bl
3.58
5.10
b.b2
5.00
L.96
b.92
JU.8U
U.77

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
( 1 M )
(12/28)
(3/9)
(11/29)
(L/12)

3.79
2.96
3.32
2.93
3.26
3.02
b.22
3.20
b.5l
3.90
3.92
3.92
3.88
3.77
3.73

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6.)
(12/27)
(3/8)
(8/29)
(2/21)

1.27
.6b

1.21
.98
1.16
.93
1.03
.87
1.17
.89 .
1.21
l.Oli

1.27
1.28
1.27
1.23
1.20

1.08
1.06
1.02
1.09
1.08

.69
.12
.68
.52
•51
.15
.63

.12

1 / Weekly average of daily figures. "Average term of bonds included is
25-26~years.
2/ Thursday figures. - Only general obligation bonds are included; average
term T s 20 years.
Note.--Highs and lows are for individual series and may be on different
dates for different series.




STOCK MARKET

D.U

Stock price

jner credit
Common
Stock market custe
Customers'
volume 2/
(millions yields 2/ I W U debit balances b/ "others" 5/
of shares) (per cent)
(Millions of dollars)

1953 - High
195b - High
Low
1955 - High
Low
1956 - High
1957 - High
November
December
January 10
January 17
January 2b

26.5b
22.95
35.98
2b. 93
1*5.89
35.28
U9-6U
b3.22

(1/2)
(9/16)
(12/31)
(1/8)
(12/9)
(I/lb)
(8/3)
(1/20)

39*b8 f12/20)

2.5
0.9
3.7
l.b
b.6
1.5
3.1
1.5
b.2
l.b

6.25
5.38
5.82
b-32
. b.b2
3.6b
b.35
3.82
b.72
3.91

2,b55
2,055
3.b36
2,b05
b,030
3,537
b,0b7
3,91b
b,031
3,576

1,665
1,31b
2,388
1,653
2,805
2,517
2,823
2,7b0
8,887
2,b82

780
66b
l,0b8
7b6
l,2bl
1,018
1,267
1,155
1,163
1,05b

10.35
bo. 33
bo.37
bl.10
bl.71

2.5
2.6
2.2
2.b
2.3

b.62

3,577

b.58
b.50
b.b3

2,517
2,b82

1,060
1,09b
1,051
1,053
n.a.

It'63 3,576

n.a.—Not available.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 19bl-b3"10. Monthly data are averages of daily figures rather than of
Fridays' only, highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
b/ 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 reporting member banks. Excludes loans for
purchasing or carrying U.S. Government securities 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.
Note.--Highs and lows are for individual series and may be on different dates
for different series.




Exhibit D
Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital

January
February
March

Corporate
1957
1

State and local 1/
1
1956
I
1
1957

April
May
July
August
September

1958

1,063
1,071
1,3W

573
712
817

e/ 750
e/ 750
506

10*
*1
696
390

818
1,11*6
61*1

765
51*6
393

378
1*90
735 .

991
911
973

e/ 800
e/ 825

I

1956

921*
771
1,169

1958

1,063
651*
838

529
581
1*30

1*08
206
357

696
632
688

639
31*7
1*09

1,820

1,1,90
1,603
971
1,395

October
November
December

1,0
831
e/1,000

715 ,
1,0692/
1,008

1st
2nd
3rd
l*th

3,1*79
3,181*
2,878
e/2,81*5

2,102
2,805
2,556
2,922

6,662
9,51*0
e/12, 385

1,907
7,1*63
10,381*

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

tlhh

2,017

m

7,081*

3,093
l*,00l*
5,1*59

Excluding finance companies jj/
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

Year

3,268
2,921*
2,560
2/2,695

1,61*7
2,51*1
2,21*6
2,026

e/ll, UU6

9,260

1/ Data through June 1956 are Bond Buyer data classified as new capital by
Federal Reserve; later data are from the Investment Bankers Association of America
and are somewhat more complete as to coverage than the earlier data, particularly
for Federal Government loans.
2/ Includes $571.5 million AT&T common stock issue.
j/ Total new capital issues excluding•offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




H.lU

Exhibit E
Large Public Security Issues for New Capital
(Other than U. S. Treasury) 3/
Proceeds of Large Issues Offered
(Millions of dollars)

Month

Corporate

1956 - December
1957 - January
February
March
April
. May
June
July
August
September
October
November
December

State and
local government

201
386
306
194
499
218
176
265
357
185
435
386
1*39

430
567
671
788
477
329 •
877
525
526
537 •
574
420
399

Other 2/

100
50
125
25
39
25
30
75

Large Individual Issues Offered January 1 through 24

Issuer

Type y

Amount
Coupon
(millions Maturity rate or
Offering
yield
of
net interdollars)
est cost

Rating

CORPORATE
Commercial Credit Co.
Notes
50.0
Conn. Light & Power Co.
Istf ref .mtg^bds
1.30.0
Washington Water Pwr. Co.
1st mtg. bds. 20.0
Commonwealth Edison Co.
S.F. deb.
50.0
W. Va. Pulp & Paper Co.
Deb.
ho.o
Pacific Power & Light Co.
1st mtg. bds. 15.0
Alabama Power Go.
1st mtg. bds. 23.0
Kimberly Clark Corp.
S.F. deb.
15.0
Pacific Gas & Electric Co. lst&ref.mtg.bds.75.0




1978
1988
1988
2008
1978
1988
1988
1983
1978

4
3
4
3
4
4
3
3
3

1/8
7/8
1/8
7/8
1A
7/8
3A
3A

1.20
3.89
li.lO
3.83
U.05
U.25
3.85
3.75
3.65

Aaa
A
Aa
A
Baa
A
Aa
Aa

H.lii

E-2
Large Individual Issues Offered January 1 through 2h (Cont'd)

Issuer

Type 3/

Coupon
Amount
Offering
rate or
(millions
Maturity
net inter- yield
of
'est cost
dollars)

Rating

STATE AND LOCAL GOVERNMENT
25.0
G.O.
Los Angeles, California
G.O.
Dade Co., Florida
Uw5
G.O.
Caddo Parish S. D., La.
7.5
Des Moines Sch. Dist., la
G.O.
5.7
State of New York
G.O.
37.5
Rev.
Ga. Rural Roads Auth.
17.5
State of Missouri
G.O.
55.0
G.O.
25.5
New York, New York
10.0
G.O.
State of North Carolina
Pa. State Hwy.fr Bridge
20.0
Rev.
Auth.
Rev.
San Diego Wtr. Auth.,Calif.
7.5
11.8
Rev.
Perrna. State Univ.
6.2
Swr. rev.
Mansfield, Ohio
100.0,
G.O.
State of California
Swr. rev.
Milwaukee Co., Wise.
5.7
Puerto Rico Water Resources
Rev.
25.0
Auth.

1959-88/68
1958-72/63
1959-78
1958-77
1959-72
1959-78/68
1959-79
1959-61
1959-77
1960-79/65
1959-93
1961-77,99
1959-87/67
1959-83/78
1959-68
1960-95

3.18
3^61
3.17

2.62

2.26
3.hi
2.31
2.12
2.39
2.63
3.29

3 *6
.5
3.07
It.17

2.10-3.30

2.75-3.50
2.15-3.20
1.80-2.60

1.60-2.30

2.20-3.10
1.60-2.38
1.75-2.05
1.60-2.UO

Aa
A
A
Aa
A
A
Aaa
A
Aa

1.90-2.70
2.00-3.35
2.50-3.73
2.30-3.75
1.65-3.15
1.50-2.15

Baa
Aa
Aaa

2.60-L.10

Baa

Aa

A

OTHER
Int'l Bk. for "ReconstrucBds.
150.0
tion and Development
Ext. loan bds.15.0
Union of South Africa

1979
1968

h iA
5 1/2

li.29
5.70

Aa
•A

n.a.—Not available.
1/ Includes corporate and other security offerings of #15 million and over;
State""and local government security offerings of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
3/ In the case of State and local government securities, G.O. denotes general ,
obligations; Rev., revenue bonds; G.R., general obligations additionally secured by
facilities revenues; L.L, limited liability obligations secured by pledge of designated revenues.




H.14"

Exhibit F
Forthcoming Large Public Security Offerings for New.Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

. Date of
computation
1956 - Dec. 31
1957 - Jan. 31
Feb. 28
Mar. 29
Apr. 30
. May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31

Nov. 29

Dec. 31

During month following
date shown
Corporate State and Other 2/
local govt.
1*76
591
740
461
187
525
370
526
578
#6
158
383
378

280
153
153 .
290
179
97
172
252
243 .
370
3#
387
383

100
35
25
•25
25
30
30
18
150

Subsequent to
date shown
Corporate|g^.|0ther ^
796
966795
486
258
525

4i5

811
845
647
815
1,193
1,161

763
648
631
862
396
388
498
514
439
587
573
589
614

100
35
25
25
25
30
15
45
63
165

Forthcoming Large Offerings, as of January 24
Type

Amount
(millions Approximate date
of dollars) of offering

CORPORATE

Royal Dutch Petroleum Co.

Common stk.

100.0

Northern Natural Gas Co.

Common stk.

21.8

^Tennessee Gas Transmission Co.
^Southern California Edison Co.
Indiana & Michigan Electric Co.
Pennsylvania Electric Co.
Cleveland Electric Illuminating Co.
^General Motors Acceptance Corp.
,*Union Electric Co.
American Telephone & Telegraph Co.

Common stk.
Preferred stk.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Deb.
1st mtg. bds.
Conv. deb.

27.0
25.0

25.0

29.0

30.0

150.0
35.0
718.3

Deb., bds. & common 45*0
Commerce Oil Refining Corp.
40.0
Natural Gas Pipeline Co. of America 1st mtg. bds.




Feb. 10
(rights expire)
Feb. 11
(rights expire)
Feb. 11
Feb. 12
Feb. 14
Feb. 25
Feb. 26
Feb.
Mar. 6
Mar. 12
(rights expire)
Winter
Winter

F-2
Forthcoming Large Offerings, as of January 2 t (Cont'd)
i
Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE M P LOCAL GOVERNMENT
Dallas, Texas
Water & sewer rev. 5.0
Dallas, Texas
6.8
G.O.
Florida State Board of Education
G.O.
7.9
Tonawanda City Sch. Dist., N. Y.
G.O.
5.1
State of South Carolina
8.0
G.O.
•^University System Bldg. Auth., Ga.
G.O.
9.0
Boston Met. Dist., Mass.
G.O.
5.5
Los Angeles, California
Wtr. rev.
9.0
•KPort of New York Authority
Rev.
lo.o
*Austin, Texas
El. wtr. & swr . rev. 6.8
State of New Hampshire
G.O.
2-l
8.t
Met. Fair & Exposition Auth., 111.
Bldg. rev.
25.0
*Columbus City Sch. Dist., Ohio
G.O.
5.0
•^Detroit, Mich.
Wtr. rev.
5.0
*Springfield, Illinois
Swr. rev.
5.6
Allegheny Co. Sanitary Auth., Pa.
Swr. rev.
25.0
No. Hempstead Sch. Dist. No. 9, N.Y.
G.O.
7.h
East Baton Rouge Par. S.D. No.l, La.
10.0
G.O.
Memphis, Tenn.
G.O.
12.5
New Orleans, La.
G.O.
6.3
Denver, Colorado
20.0
Wtr. rev.
Public Housing Authorities
67.1
Wichita Sch. Dist. No. 1, Kansas
G.O.
5.0
New York State Thruwsgr Auth.
Rev.
5o.o
^State of Minnesota
12.0
G.O.
Met. Water Dist. of Southern Calif.
• 18.0
Rev.
Guilford Co., North Carolina
6.0
G.O.
*Long Beach, California
G.O.
10.1
^State of Connecticut
G.O.
35.0
•instate of Alabama
G.O.
21.0
^Houston Tnd. Sch. Dist., Texas
G.O.
15.0
Milwaukee, Wisconsin
Wtr. rev.
10.0
Pennsylvania Turnpike Commission
62.0
Rev.
Inter-American Center Authority,Fla.
Rev.
20.0

Jan. 27
Jan. 27
Jan. 28
Jan. 28
Jan. 28
Jan. 28
Jan. 29
Jan. 29
Jan. 29
Jan. 30
Jan. 30
Feb. 3
Feb. I
t
Feb. i
t
Feb. I
t
Feb. I
t
Feb. i
t
Feb. i
t
Feb. i
t
Feb. 5
Feb. 5
Feb. 5
Feb. 6
Feb. 6
Feb. 11
Feb. 11
Feb. 11
Feb. 18
Feb. 18
Feb. 19

e Feb.

26

Mar. 18

Winter
Winter

OTHER
Quebec Hydro-Electric Commission

Deb.

50.0 •

Jan. 29

*—Included in table for first
1/ Includes corporate and other issues of 815 million and over; State and
local-government issues of £15 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
Note.—Deletions for reasons other than sale of issue: None.




Exhibit G

H.Hi

Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1/
Aa-rated offering yields
A-rated offering yields
Amount above
Amount above
Actual
Actual
seasoned yields
seasoned yields
(per cent)
(per cent)
=(basis points)
(basis points)

Date

1952 - 1956
•

High
Low

.

lw30(12/12/56)
2.93(3/31/51)

.

1957 - January
February
March
April
- . May
June
July
August
September 5

.

October 1

6
25

15
17
2U
November 7

8
15
20
21
22

December 6

12

62
-3

L.liU
ii.25

57
hh

*1.29
h.Uh
U.71
U.66
*5.00
1.80
L.85

50
58
81
57
75
51
56

U.78

l5
i

U.97
Ii.86 2/

63
52

U.82
li.65
U.65
ii.30

53
37
39
U

3.60

-8

None

1958 - January 8

9
17
21
23

>6)
1.58(12/6/!
3.00(3/17/51)

U.62

70
-15
6U

None

h .50
h.55
1.80
*5.10
U.86 2/
None ~~

l5
i
5U
. 79
106
70

5.10

51

5.00
lw95
5.30
. 5.50 .
.

39
3U
67
88

5.05 2/

l3
i

• li.LO
I .07
t
li.10 2/
3.85 "
3.80

i
i
9
13
-3
-8

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
seasoned 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
from 26 to 28 years.
2/ Both issues on which July average is based and other issues so marked
provide for a 5-year period during which issue may not be called for refunding at
a lower coupon rate. Other issues have no such provision.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102