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DECONTROLLED AFTER SIX MOUTHS

CAPITAL
, MARKET
DEVELOPMENTS

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




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r
n o.

Revised
Not available




3
TABLE 1: Yields, Volume and Reception

WEEK ENDING:

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
.OFFERINGS
WITHIN 28 DAYS

1969 - June

6
13
20
27

7.52
7.75
7.66
7.50

6.90
6.96
7.03
7.03

226
267
435
240

73
96
91
90

644
432
687
595

July

4
11

7.63

7.03

86
320e

49

515

WEEK ENDING:

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX

1969 - June

6
13
20
27

5.55
5.60
5.60
5.55

July

4
11

5.55

MUNICIPAL BOND MARKET
VOLUME2!
PERCENT
,BONDS SCHEDULED
GROSS
SOLD BY END
• WITHIN 28 DAYS
OF WEEK
OFFERINGS

5.73
5.82
5.79
. 5,68

222
115
177
191

73
89
79
86

. 365
439
552
530

....

138
130e

57

690

V

5.68

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

Sec footnotes to Table 3




.
.

X

'

;

•

TABLE 2: Details on Inventories
CORPORATE BONDS .IN SYNDICATE END OF LATEST WEEK
[ORIGINAL
RATING AND
] ESTIMATED PROCOUPON 1 YIELD CALL PROTECTION ' ] PORTION SOLD
ISSUER

AMOUNT
(MIL. $)

DATE
OFFERED
7/1 .
7/1
6/25
6/25

'

12
25
" 5
18

8
i 8
8
6-1/2

Madison G.. & E. 1st
Central Tel. 1st
Missouri P. & L.
Fisher Foods

'

\

• '

7.95
8.00
7.90
6.50

'

'

Aa
Aa
A
Ba

5 yvs,,_L v
5 yrs.
5 yrs.
(N.C,)

20 %
85 %
751%
75 %

'

/

•

^

i

/

OFFERED

DATE
| RELEXSED
6/30
6/30
7/1
7/3
7/1

6/18
6/24
6/25
6/26
6/30

•

July

60
25
30
25
40

Ind. & Mich. Elec.
West Penn. Pwr.
Duquesne Light
Hawaiian Tel .
Mich.-Wise. Pwr. & Light

INVENTORIES 1
MUNICIPALS
BLUE :
LIST
I
IN SYNDICATE

DATE

1969 - June

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
• COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD

AMOUNT

6
13
20
27
7g/

509
461
385
r/349
353.

8
7 -7/8
7-3/4
8
8 -1/8

7.75
7.75
7.73
7.85
8.13

25
13
12
27
22

A
Aa
Aa
A
A

5
5
5
5
5

yrs.
yrs.
yrs.
yrs.
yrs.

65%
50%
10%
20%
90%

CORPORATES
IN SYNDICATE

164
118
80
45

101
3
41
53

86

. 22

N.C. - No call protection.
. • .^ \
1
All figures in.millions of dollars. Blue List is daily average for week ended Friday,except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Fridav.




BONDS IN SYNDICATE
i—i—i—(—i
i i i T
i
CORPORATE BONDS IN SYNDICATE

I—i—~i
1 1 1—l
I I I
MUNICIPAL BONDS IN SYNDICATE




i

I

i

r

TABLE 3: High Grade Bond Yields
U.S. GOVERNMENT
20-YEAR
CONSTANT.
MATURITIES 3

BOND .
.
BUYER'S
SEASONED
MUNICIPALS 4

6.24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.45(12/7)
3.40(2/2)

MOODY'S SEASONED
" CORPORATE
.
Aaa!2

1967 - High
Low

NEW
CORPORATE
Aaa 1
6.55(12/8)
5.11(2/10)

1968 - High
Low

7.02(12/13)
6.13(8/30)

6,55(1/27)
5.95(9/13)

5.90(1/20)
5.18(8/9)

4.85(12/26)
4.07(8/8)

1969 - High
Low

7.75(6/13)
6.90(2/21)

7.03(6/20)
6.55(1/3)

6.41(5/30)
5.96(1/24)

5.82(6/12)
4.82(1/28)

6.37
6.27
6.25
6.25
6.30

5.73
5.82
5.79
5.68
5.68

DATE

1969 - June

6
13
20
27
.
July 7e/

1

7.52
7,75
7.66
7.50
7.63 '

6.90
•6.96
7.03
7.03
7.03

,

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in. this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and/lows are for individual series and may be on different dates
for different series.




HIGH GRADE BOND YIELDS

Per cent

NEW CORPORATE Aaa

MOODY'S
X Z
CORPORATE Aaa

U S. GOVT. 20-YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

- 3
1965




1966

1967

1968

1969

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE

-; PERIOD
1969p

1

STATE AND LOCAL 2

1968p

1967

1969p

1968p

1967

1,178
. 1,158
1,404

1,492
1,236
1,450

January
February
.March

2,075
2,045
2,098

1,771
1,608
1,799

1,684 1
1,418 !
2,362 V

1,260
986
525

April
May
June

2,707
2,050e
2,560e

1,428
1,866
2,411

2,015
1,518
2,674

i
1

1,779
1,085
700e

1,318
1,143
1,395

1,130
1,254
1,497

July
August
September

2,700e

2,143
1,432
1,557

2,589
2,481
1,763

;

: 800e

1,469
1,699
1,444

950
860
1,340

2,129
1,767
2,054

2,409
1,500
2,385

2,230
' 1,021
1,115

975
1,401
1,182

3,740
3,856
4,612
4,366

4,177
3,881
3,150
3,557

7,956
12,008
16,574

. 8,059
11,209
14,766

October
November
December
1st
2nd
3rd
4th

Quartet
Quarter
Quarter
Quarter

1st half
Three quarters
Year

6,218
7,317

5,178
5,704
5,133
5,950

.

10,882
16,015
21-965

!

5,464
6,208
6,832
6,294
11,672
18,504
24,798

2,771
3,564

1

Excluding finance companies 3
1st Quarter
2nd Quarter
3rd" Quarter
4th Quarter
Year

5,107
5,427
4,785

>

5,308
6,063
6,584
5,859

|

23,814
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.
,
Estimated.




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

(QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
OFFERED
PLACED
STOCK
FOREIGN | CONVERTIBLE

1968 - I
II
III
IV
1969 - I
lie/

5,178
5,705
5,133
5,951
6,218
7,317

2 465
3 105
2 606
2 555
2 657
3 ,377

1 724
1 644
1 361
1 922
1 540
1.
,793

989
956
1 166
1 474
2 ,023
2 ,105

313
172
124
113
215
n.a.

584
758
1,037
902
1,355
1,536

1,867
2,418
2,144
1,433
1,556
2,129
1,767
2,055
2,075
2,045
2,098
2,707
2,.050
2,560

,046
1,
1 ,340
1,
,244
637
727
1,
,009
939
607
980
842
835
1 ,267
900
,210
1,

521
685
528
400
433
595
362
965
636
395
509
634
550
650

300
385
372
396
398
525
466
483
460
808
755
805
600
700

89
52
47
49
28
24
49
40
103
74
38
9
n.a.
n.a.

380
239
605
211
221
365
211
326
376
578
401
436
700
400

563
767
843
362
453
640
421
651
403
513
491
515
500
325

and finance, and commercial and other.
Source: Securities and Exchange Commission,
able.
e/ Estimated.




COMMUNICATIONS

OTHER
ISSUERS

1.
,442
1,
,244
L ,160
1,
,435
,346
1,

422
536
490
319
473

1,407
2,223
1,825
2,483
2,991

1:
,609

- 424

3,909

104
239
239
95
156
115
162
41
186
56
231
44
200
180

642
898
822
530
472
700
741
1,044
860
1,161
970

PUBLIC
UTILITY

1,
,907
1,
,703
,657
1.
1,
,712
1,407
1 ,340

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
Maye/
June e/

GROSS PROCEEDS BY

Quarterly supplements are avail-

557
507
239
446 .
475
674
443
319
627
315
404
739
320
550

V, 030
1,470

I
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
During June 1969.

TYPE '

. AMOUNT
(MILLIONS
OF
DOLLARS)

COUPONRAN,: OR '
M.i- 1 .TKRI ST COST

MATURITY

01-TKR-

MOO I ' '
'
i

INC.

RA'l I N
.<

8

7.85

A

8-1/2
7-5/8
7-3/4
5-1/4
8
8-1/8
7-1/2
8-3/8
8
8
5-1/8
8 ,

8.55
7.63
7. 72
5.25
7.90
8.00
7.50 .
8.38
8.00
7.83
5.13
7.75

Ba
Aaa
Aa
Ba
Aa
Aa
Aaa
N.R;
Aa
Aaa
Baa
A

y i i;r.i)

Corporate

Virginia Elec. & Pwr. Co.
Pfd. stk.
Pennsylvania Electric Co.
Rev.
Texas Eastern Transmission
Corporation \
Debs.
Consumers Power Company
1st mtg. bds.
Virginia Elec. & Pwr.
Bds.
Paper Craft Corporation
Conv. debs.
Florida Power & Light Co.
1st mtg. bds.
Pennsylvania Power. & Lt, Co,1st mtg.
Shell Pipeline Corp.
Debs.
Beneficial Finance
Debs.
Wisconsin Power & Light
1st mtg.
Illinois Bell Telephone Co. 1st mtg. bds.
Carrier Corporation
Conv. debs.
Indiana & Michigan Elec. Co 1st mtg. bds.
South Carolina Elec. & Gas
Company
Rev.
Standard Oil Company
Debs.
Reichbold Chemicals Inc.
Debs.
Budd Company
Conv. debs. Fisher Foods, Inc.
Debs.
West Pennsylvania Pwr. Co; 1st mtg.
Colorado Interstate Corp.
Bds.
Duquesne Light Company
1st mtg. bds.
Continental Oil
Debs.
Hawaiian Telephone Company Rev.
Consumers Power Company.
Pfd. stk.
Baltimore Gas & Elec.
om. stk.
Kimberly-Clark Corp.
3om. stk.
Central Tel. & Utilities
Corp.
1st mtg. bds.
Mich. Wise. Pipe Line Co.
Bonds
" " i" '
 ^


-

\\

35.0
28.0

1999

50.0
50.0
75.0
15.0
50.0
40.0
60.0
50.0
25.0
150.0
25.0
60.0

1989
1999
1999
1994
1999
1999
1999
1971
1999
2005
1989
1974

35.0
100.0
25.0
30.0
18.0
25.0
30.0
30.0
100.0
25.0
35.0
54.2
57.8

1999
1999
1994
1994 .
1994
1999
1989
1999
1999
1994

25.0
40.0

•

8
7.60
8
5-7/8
6-1/2
7-7/8
8
7-3/4
7-1/2
8

8.00
7.60
8.10
5.88
6.50
. 7.75
8.00
7.73
7.52
7.85

8
8-1/8

8.00
8.13

A
A
Baa
Ba
Ba
Aa
A
Aa
Aa
A

(r-ts. exp.)
(rts. exp.)
1994
1989

Aa
A

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
During June 1969.
uUUPON
HAT.: OR
OFFKR- MOO I ' V '
RAT I M,
M.i ' I .TICKINC
I ST COST
Y1 HI. I
)

AMOUNT
(MILLIONS
OF
DOLLARS)
State

& local Government

University of California
Rev. bds.
King Co., Washington
G.O.
Los Angeles Dept. of Wtr.
and Pwr.
Rev.
Alabany Co., New York
G.O.
Nassau Co., New York
G.O.
Phoenix Civic Plaza Bldg.
Corp., Arizona
Rev.
Shrevpport, Louisiana
Bds.
Shreveport, Louisiana
Rev.
Massachusetts, State of
G.O.
Port of New York Auth.
Rev.
Minnesota, State of
G.O.
Jftempstead, New York
G.O.
Coastal Ind. Wtr. Auth. Tbx. Rev. .
Coastal Ind. Wtr. Auth., Tex.Rev.
Jefferson Parish, La.
G.O.
Philadelphia, Pa.
Bonds
Philadelphia, Pa.
Bonds
Alaska
G.O.
Louisiana State Bd. Comm.
Bonds




16. 2
28. 3

1969-2006
1971-2009

3.00
6.07

39. 0
70. 0
42. 1

1970-1999
1970-1989
1970-89

19.0
8. 7
5.
,0
28.
,5
30.
.5
12.
,0
10,
,0
10,
,0
9,
,0
17 .5
38 .0
22 .6
10 .5
15 .0

1973-1999
1970-94
1970-94
1970-89
1970-96
1970-89
1970-83
1982-1991
2007
1984
1970-99
1970-94
1979
1970-84

5.40-5.90
5.50-6.20,

A

5.90
5.96
5.98

4.90-5.85
5.00-5.90
5.50-5.95

Aa
A
A

6.43
5.90
5.93
5.54
5.67
5.48
5.72
5.96
5.96
6
6.43
6.35
5.69
5.59

5.40-5.90
5.25-6.00
5.30-5.90
5.05-5.55
5.10-5.75
5.00-5.50
5.25-5.65
5.50-5.80
5.97
5.50-6.50
5.60-6.30
5.60-6.50
5.50
5.20-5.50

A
A
Aa
Aa
Aa
Aa
A
A-l
A-l
Baa
Baa-1
Baa-1
Baa
A-l

\

\

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1

1
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

During June 1969.
COUPON
RATE OR
OFFER- MOODY'S
NET INTERi;;
;c
RATING
EST COST
. YIELD

Other - /
Tennesee Valley Auth.
bev.
Alberta Government Telephone
Commission
pebs.
Canadian Pacific Railway
Co.
. '
.
Equip.
Federal Land Bank
Bonds

100.0
30.0
30.0
270.0

1974

7.75

1994-98

8.19

Aa

8.25
8.15

Aa

1984
1971

8-1/4
8.15

Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
.
„ . ,

ISSUER

TYPE

AMOUNT :
(MILLIONS
OF
DOLLARS).

APPROXIMATE DATE
OF OFFERING

Corporate
Conv. debs.
*Beneficial Standard Corp.
Debs.
So. Bell Tel. & Tele. Co.
*Dow Chemical
Debs
Cities Service Co.
Debs.
Lomas 5 Nettleton Fin.Corp. Conv. debs.
=
Sheller-Globe Corp.
Conv. debs.
Debs.
Nat'1. Cash Register Co.
Vernitron Corp.
Conv. debs.
Century Mtg._Investors.
Debs.
^ Cleveland Elec. Ulluminat±ig Bonds
Wisconsin Gas Co.
Bonds
Commonwealth Edison Co.
1st mtg.;
Consolidated Natural Gas Co. Debs.
*Weyerhauser Co.
Debs.
Nat'1. Fuel Gas Co.
Debs.
American Elec. Pwr. Co.
Com.stk.
Bell Tel. Co. of Pa.
Debs.
Bonds
*Metropolitan Edison Co.
Bonds
*Florida Pwr. Corp.




15 .0
150 .0
100 .0
100,
.&
25,
.0
25,
.0
100,
.0
20.
.0
25,
.0
30.
,0-60.0
16.
,0
100.
,0
30.
,0
150. 0
20. 0
92. 7
100. 0
28. 0
35. 0

July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
Aug.
Aug.

7
8
9
16
10
14
14
14
14
15
15
22
22
22
23
28
29
5
7

13

TABLE 7: Forthcoming Large Long-term Public Security Offerings for N e w Capital
(Other than U.S. Treasury)1
(continued)
'

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Government
*Kentucky, State of
Ft. Wayne Comm. Sch. Bldg.
Corp., Ind.
Tallahassee, Florida
*Alexandria, Va.
Allegheny Co., Pa.
Oklahoma
Los Angeles Dept. of
, Airports
*New York City
Dallas Co., Texas
Hempstead S.D. #1, N. Y.
*Commonwealth of Penn.
*New York State Housing
Finance Agency
^Seattle, Wash.
*0hio, State of

1
2

Bonds
1st mtg.
Rev.
Bonds
G.O.
G.O.

"

20.0

July

20.8
12.0
11.3
34.5
30.3

July 8
July 9
July 9
July 10
July 15

Rev.
Bonds
Bonds
G.O.
G.O.

60.0
146.3
25.0
10.7
125.0

Bonds
G.O.
Bonds

80.0
25.0
65.0

July
July
July
July
July

8

15
15
17
21
22

July 23
July 29
July 29

Included in table for first time.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




,
/

TABLE 8: Stock Prices and Volume

n
STOCK PRICES 1
S&P
5003
1967 - High •
Low

97.59(9/25)
80.38(1/3)

D.J. - IND.

—

TRADING VOLUME '

AMEX 4

AMEX

943.08(9/25) 24.52(12/29)
786.41(1/3) 13.78(1/27)

60.7(8/14)
27.4(1/6)

33.5(10/27)
8.3(1/6) .

1968 - High
Low

108.37(11/29) 985.21(12/3) 33.25(12/20)
87.72(3/5)
825.13(3/21) 22.00(3/22)

82.1(6/7)
34.0(2/23)

45.4(6/7)
14.1(2/23)

1969 - High
Low

105.94(5/16)
96.67(6/20)

968.85(5/14) 32.910 /3)
869,76(6/27) 27.75(6/27)

72.7(5/2)
32.8(4/4)

38.4(5/9)
12.9(4/4)

924.77=
894.84
876.16
869.76
886.12 .

56.1
59.9
56.5
54.2
40.0

30.3
26.8
22.7
22.3
16.9

1969 - June 6 102.12
13
98.65
20 j 96.67
97.33
2 7
•
J
July 7e./| 99.61

30.52
29.27
27.99
27.75
28.64

Figures other than highs and lows are Fridays only,
for the year and are not necessarily for Fridays.

Highs and lows are

.Total, number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
27 1/2 hours per week. From August 8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week
was also in effect from January 22 through March 1, 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. Beginning January 3, 1969, the exchanges have been
open 4 hours each day, 20^hours per week. NYSE is New York Stock Exchange;
AMEX is American Stock Exchange.
1941-43 = 10.
4

Average dollar value of shares listed.

E./

Preliminary.




STOCK PRICES AND TRADING VOLUME
AMEX

D
J

Weekly

(Ind)
1300

STOCK PRICES

SP
A

(500)
130

1260
AMEX PRICE LEVEL INDEX A

126

1220

122

1180

33

118

1140

114

1100

S&P's 500

110

1060

106

1020

25

102

980

98

940

94

900

90

860

D J. IND.

86

820
780

78

740

74

AMEX T R A D I N G VOLUME (TOTAL FOR WEEK)
40

20

- NYSE T R A D I N G V O L U M E FTOTAI. FOR" WEEK)

1965

1966




1967

1968

1969

17

TABLE 9: Security Credit

END OF PERIOD

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY: •
BROKERS 1 | BANKS 2 1 TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS1 NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

Outstanding;

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr. r/'
May 2j

6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,200
5,930
5,750
5,590
5,570
5,670

2 ,360
2 ,410
2 ,420
2,490
2 520
2 560
2 630
2 710
2 750
2,
,810
2,
,780
2,
,760 ^
2,
,770

9,000
9,100
8,920
8,950
8,910
8,810
8,830
8,900
8,680
8,560
8,370
8,330
8,440

8,268
8,728
8,861
8,489,
8,724
8,859
9,029
9,970
9,107
9,148
8,318
8,044
8,474

3,064
3,293
3,269
2,984
3,126
3,407
3,419
3,717
3,597
3,647
3,294
3,077
3,084

5,204
5,435
5,592
5,505
5,590
5,452
5,610
6,073
5,510
5,501
5,024
4,967
5,390

10
50
10
70
30
40
70
80
40
60
-30
-20
10

220
100
-180
30
-40
100
20
80
-220
-120
-190
-40
110

567
460
133
-371
235
135
. 170
761
-683
-51
-830
-274
430

85
229
-24
-285
142
281
12
298
-120
50
-351
-217
7

482
231
156
-86
85
-138
158
563
-501
-.9
-477
-57
423

Change in
Outstanding;

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.r/
May 2./
1
2
3

210
50
-190
-40
-70
-140
-50
--

-270
-180
-160
-20
100

Margin debt, as reported by the fjew York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for"purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit'balances and customers' net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. • Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.




. TABLE 10:- Savings Flows at Nonbahk Depositary Intermediaries
($ millions)

DATE

SAVINGS & LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
SHARE CAPITAL
REGULAR DEPOSITS 3 , NET .
• NEW
NEW
ANNUAL
ANNUAL
MONEY 2
GROWTH
NET
MONEY 2
GROWTH
NET
FLOW
RATE 1
RATE 1
FLOW

(-"TOTAfc—
x
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Adjusted
1966
1967
1968

2,557
5,082
4,186

1968 - Mar.
Apr.
May
1969--Mar.
Apr.£/
May £"/

645
-75
363

4.9
9.3
7.0
__
--

642
-197
315

227 | 3,584
2,376 10,687
1,143
7,396
117
-189
300

1,275
-294
' 757

81 ; 1,370
-325 . -492 '
235
619

3.2
9.4
5.9

—

-——

, -552
6,129
2,676

6,141
15,769
11,582

541
-324
722

1,920
-369
1,120

524
-536
601

2,012
-689
934

3.8
9.4,
6.3

-325
8,505
3,819

—

658
-513
1,022
'

605
-861
836

Seasonally Adiusted
1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr. p/
May \ f
1
2
3

p

362

6.8

220
384
382
160
364

4.1
7.2
7.1
3.0
6.7

--

620

5.7

-r

523
582
895
214
476

4.8
5.3
8.1
1.9
4.3

—

• --

-—
——
__

982

6.1

743
966
1,277
374
840

4.6
5.9
7.8
2.3
5.1

__

__

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 9670 of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board,
Preliminary.
I




SAVINGS FLOWS (seasonally adjusted)
Monthly

.

Millions of dollars

2000
1600
TOTAL

1200

800
400

400
1200
SAVINGS & LOANS

800
400

400

800
MUTUAL SAVINGS BANKS

400

400
1965




1966

1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1
NET CHANGE
OUTSTANDING COMMITMENTS
ALL
ALL
MUTUAL
SAVINGS
TOTAL
SAVINGS &
.
SAVINGS &
.
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Seas onally Adjusted) JL/

DATE

TOTAL

1968 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. ;

8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7

6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

9.9
10.1
10.3
10.5
10.3

' ' 6.7 '
6.9
7.0
7.2
7.1

1969 - Jan.
Feb.
Mar.
Apr.
May £/

l

.
,'MUTUAL
^ SAVINGS
BANKS
(N.Y. STATE)

2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1

x

I

-.13
-.04
.24
.16
.14
.35
.27
-.01

-.16
-.10
. 16
.10
.22
.10
.08

.02
.06
.08
.16
.04
.13
.17
-.10

3.2
3.2
3.3
3.3
3.2

.15
.25
.17
.19
-.19

.08
.22
.09
.18
-.10

.07
.03
.08
.01
-.09

--

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Net changes are derived directly from unrounded outstandings .
levels as reported and after seasonal adjustment by Federal Reserve. Subtotals
may not add to total? because of rounding. Mutual Savings Banks and total data
include building loans beginning August 1967.




v"

I

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

\

Billions of dollars

TOTAL

S&L'S

N Y. MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings T

DATE

TOTAL
-INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
COMMERCIAL
LOAN
COMPANIES
BANKS
BANKS
ASSOC.

FNMA-GNMA

1965 - I
II
III
IV

4,761
6,365
6,469
6,303

4,813
6,431
6,403
5,947

823
1,749
1,805
1,322

9165
946
1,072
1,078

1,860
2,706
2,460
1,947

1,165
1,030
1,066
1,600

-52
-66
66
356

1966 - I
II
III
IV

5,425
5,648
3,976
3,056

4,630
5,097
3,468
2,587

975
1,656
1,300
774

753
513
739
715

1,683
1,651
373
54

1,219
1,277
1,056
1,044

795
551
508
469

1967 - I
H"
III
IV

2,617
4,868
6,285
6,246

2,267
4,762
5,706
5,484

151
1,200
1,751
1,537

770
786
839
758

486
2,119
2,595
2,320

860
657
521
869

350
106
579
762

1968 - Apr.
• May
June
July
Aug.
Sept.
Oct.
Nov.
^
Dec.

1,978
2,238
2,125
1,851
1,982
2,000
2,314
2,088
2,483

1,732
2,003
1,905
1,699
1,841
1,892
2,153
1,943
2,311

616
616
616
533
533
746
807
706
404

160
203
219
248
233
221
313
310
340

879
957
901
718
874
810
845
732
903

88
216
169
200
201
115
188
195
664

246
235
220
152
141
108
161
145
172

1969 - Jan.
Feb.
Mar.
Apr.
May-

1,750
1,770
1,945
2,202

1,549
1,549
1,740
'2,011
n.a.

500
500
500
600
n.a.

293
228
198
204
233

622
671
917
1,026
1,126

134
-150
125
181
n. a.

201
221
205
191
185

. l;

2

-

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.
FNMA includes GNMA after September 1, 1968.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL. FNMA - GNMA

2.0

1.5

FINANCIAL INSTITUTIONS

1966




1967

1968

1.0

1969

TABLE 13: Net Increases in Mnrtqao* Debt Outstanding
Billions of dollars, SAAR 2
QUARTER

TOTAL

RESIDENTIAL2

1- to 4FAMILY

1965 - I
II
III
IV

24.9
25.2
25.8
26.6

18,6
18.5
19.3
19.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
'9.5

14.7
12.1
8.3
7.2

4.3
3.5
2.6
2.3

6.9
6.5
5.4
4.3

11.6
10.0
8.3
6.2

2.4
2.2
,2.1
1.7

1967 - I
II
III
IV

15.5
20.4
26.3
28.6

9.9
13.7
19.1
20.9

6.8
10.5
15.3
16.5

3.0
3.3
3.8
4.4 ,

3.8
4.8
. 4.8
5.1

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

1968 - I
II
III
IV

26.9
25.8
25.8
31.4

18.2
17.9
17.6
21.5

15.4
14.8
14.1
17.0

2.8
3.1
3.5
4.5

6.2
5.6
6.4
8.2

9.4
8.7
10.2
11.8

2.4
2.3
1.8
1.7

1969 - I

30.0

21.0

3.1

7.0

10.6

2,0

2,

18.0

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

Corporation, Federal Home Loan Bank Board, Institute of Life Insurance,
National Association of Mutual Savings Banks, Departments of Commerce and
Agriculture, Federal National Mortgage Association, Federal Housing
Administration, Veterans Administration and Comptroller of the Currency.
Separation of non-farm mortgage debt by type of property, where not available,
and interpolations and extrapolations, where required, estimated by Federal
Home Loan Bank Board and the Federal Reserve.
Residential mortgage debt includes nonfarm only and is sum of I - t o 4-family
and multifamily mortgage debt combined.
Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

-

. • . i

i

1

1

1

1

T

32

TOTAL

24
TOTAL
RESIDENTIAL

Zx

I 1-4 FAMILY

COMMERCIAL

MULTIFAMILY

1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

AMOUNTS IN $ MILLIONS
IMPLICIT YIELD
ACCEPTED
.
6TOTAL
TOTAL
6312-18-'
312-18—/
OFFERED '
M0NTHS MONTHS
MOS,
• MONTHS MONTHS
MOS.

Apr. 1
7
14
21
28

182.9
175.9
144.7
128.1
157.7

93.1
102.5
101.1
100.9
84.1

4.6
8.2
7.9
4.6
4.8

47.2
57.8
52.3
59.8
58.7

41.4
36.5
40.9
36.5
20.5

8. 10
8. 12
8. 10
8.
,05
7. 94

8.11
I 8.13
8.10
8.05
7.94

7.98
8.01
7.98
7.93
7.86

May

170.8
210.4
236.2
263.0

84.4
85.0
83.3
96.1

6.7
9-3
13.8
12.3

58.2
55.9
51.0
67.8

19.5
19.7
18.5
16.0

7.
,89
7.
,87
.87
7.
.89
7.

7.90
7.89
7.88
7.91

7.83
7.81
7.81
7.84

103.0 15.3
100.& 21.3
100.5 15.4
124,3
8.7
121.5 22.7
(120.0)—

65.5
57.7
66.8
92.5
84.0

22.1
21.2
18.3
23.1
14.8

.92,
7.
7.
.99
8.
.31
8.
.37 .
8.
.39

7.95
8.01
8.26
8.40
8.43

7.86
7.92
8.14
8.26
8.27

5
12
19
26

June 2
9
16
23 |
30
July ?e f

'

304.6
291.6
409.7
304.1
245.6

Note:- Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA' forward purchase commitments, subject to an over-all. dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy,

1

For "proposed construction" of. new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points fee paid by investors
to servicers.

3
FNMA



announced limit of accepted bids for next week's auction.

FN MA WEEKLY "AUCTION" RESULTS

Millions
~1 120

A M O U N T OF ACCEPTED B I D S BY C O M M I T M E N T PERIOD
100

80
1 YEAR
I AND OVER

60
40

6 MONTHS

3 MONTHS

Per c e n t
8.6

I M P L I C I T YIELD
6 MONTH COMMITMFNTS

8.0

7.4

_J

6.8

Millions
400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED
AUG

OCT.

1968




DEC.

FEB

APR.

JUNE

1969

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS
UNADJUSTED
TYPE OF FINANCING
FHA VA

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
1968 - Apr.
1.591
• May
1.364
June
1.365
' July
1,531
Aug.
1,518
Sept. • 1.592
Oct.
1,570
Nov.
1,733
r Dec.
1,509
1969 - Jan.
Feb.
Mar.
Apr. £/
May j>/

1,878
1,686
1,584
1,556
1,509

922
838
790
904
867
944
965
905
922

669
526
575
627
651
648
605
828
585

162.0
140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4

1,066
975
828
788
875

812
711
756
768
634

101.5
90.0
131.9
158.3
155.2

22.6
20.5
19.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

21.4
17.5
16.3

5.4
5.5
5.0
4.9
4.8
4.6
5.3
4.2
4.4

134.0
114.9
113.1
116.2
110.9
111.1
114.0
105.4
75.7

1,340
1,280
1,281
1.289
1.290
1,393
1,378
1,425
1,463

14.2
13.2
18.9
23.0
21.1

3.8
3.5
3.9
4.4
4.3

83.5
73.3
109.1
130.9
129.8

1,403
1,477
1,421
1,502
1,370

18.8
20.9

18.6

Total starts are Census estimates including farm for both permit-issuing and
noxi-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started-at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963 are for approximately 12,000 and beginning January 1967 13,000, or
all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




PRIVATE HOUSING STARTS AND PERMITS
Monthly .annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.6

1.2

BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

y

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

DATE

1957 - High
1958 - Low
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low .
19.68 - High
Low

CONVENTIONAL
MORT25-YEAR 30-YEAR
GAGES
3
5.63
5.35
6.26
5.43
6.73
n. a.
n. a.
n. a.
n, a.

2

n.a.

n. a.
n.a.
5.44
6.81
6.81
6.29
7.52
6.78

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

1

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

NEW
Aaa CORPORATE
BONDS
4

.47
.15
.23
.25
.30
.11
-.12
.02
-.27

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

'

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

1968 - Nov.
n. a.
7.36
7.30
-.06
.6.61
• .75
Dec.
n. a.
7.50
7.40
-.10
6.79
.71
——
-1969 - Jan.
n. a.
7.55
6.92
Feb.
n. a.
7.99
7.60
-.39
6.91
1.08
Mar.
8.05
7.37
7.65
-.40
.68
Apr.
8.06
-.31
7.75
7.17
.89
May"
n'.
.a'
8.06
7.75
7.22
-.31
.84
V Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a. semi-annual interest investment, would be slightly higher than given in the
table.
•
2 Based on FHA-field-office opinions about average bid prices in the private
secondary "market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgaged. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates.
3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mort- gages. Dashed line indicates this change in the series.
4
See note for Table 1.




MORTGAGE AND BOND YIELDS

Monthly

Percent

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW. ISSUES
7
W

Basis points

Y I E L D S P R E A D (FHA MORTGAGEES. NEW ISSUE Aaa CORPORATE BONDS)

200

100

" ^ W \
1
1962




1964

1

1
1966

1
1968

1970

32
TABLE 17: Conventional Mortgage Terms
NEW HOMES

FEES &
TRACT CHARGES EFFEC- MATURITY

CONDATE

LOAN /

RATE
(PER
CENT)

PRICE LOAN
RATIO AMT.
(PER. ($000)
CENT)

(PER
CENT)

2

TIVE
RATE
3

(YEARS)

1

EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGE'S EFFEC- MATU- PRICE
(PER
RATE
TIVE
RITY RATIO
(PER
CENT)

CENT) RATE
2
3
-

i

'1

LOAN &
AMT. 1
(S000?1

(YEARS) (PER
CENT)

1968
May
June
July
Aug.
Sept.
Oct.

I
6.69
6.88
7.04
7.10
7.10
7.09
7.07
7.09

0.95
0.95
0.85
0.87
0.87
0.88
0.84
0.89

6.84
7.03
7.17
7.24
7.24
7.23
7.21
7.23

25.0
25.4
25.5
25.5
25.5
25.6
25.4
25.9

73.2
74.4
73.7
73.6
74.2
74.5
74.1
74.0

21.7
22.3
22.2
22.6
22.1
22.7
22.5
24.7

6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.87
0.86
0.83
0.85
0.82
0.84
0.82
0.85

6.95
7.12
7.23
7.26
7.25
7.22
7.21
7.23

22.5 73.1
22.6 73.1
22.5 72.6
22.7 73.0
22.6 72.6
22.5 72.4
22.7 72.9
23.3 73.2

7.16
"Feb.
7.26
Mar.
7.32
Apr.
'7.47
May £/ 7.50

0.84
0.81
0.93
0.96
0.88

7.30
7.39
7.47
7.62
7.64

25.6
25.6
25.8
25.4
25.8

73.6
73.3
73.8
72.6
73.0

24.1
23. 5
24.0
24.8
25.2

7.18
7.28
7.35
7.46
7.54

0.86
0.86
0.84
0.85
0.83

7.32
7.42
7.49
7.60
7.67

22.8
22.9
23.0
23.0
22.8

Nov.

Dec.
1969

.

18.3
18.2
18.5
18.6
18.3
18.3
18.9
20.4

:

20.0
19.6
20.2
19.9
19.8

i
;
>
J
1
'
i

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages bas.ed on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans.for refinancing, reconditioning or modernization; construction loans to
. home-builders; and permanent loans which are coupled with construction loans to ownerbuildiers. Related series on conventional mortgage rates only, based on unweighted
/ opinions of field-office directors of the Federal Housing Administration, are available
somewhat•sooner than the results of the FHLBB-FDIC survey^ and are included-in the case
of new home mortgage rates--in Table 16.

3

Fees and charges--expressed as a percentage of the principal mortgage amount--include
• loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




'
,

-

72.6
72.8
72. 7
71.8
72.0

1

2

t
,
;

CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30

MATURITY
NEW

25

EXISTING

20

LOAN/PRICE RATIO

75

NEW

EXISTING
70

1963




1965

1967

1969
• CHANGE IN SERIES

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