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AFTER S I X MONTHS
L.5.8

Confidential (F.R.)

CAl
MARKET
DEVELOPMENTS

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




70

INDEX

3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

Estimate
Preliminary
Revised
Not available




TABLE 1: Yields, Volume and Reception
CORPORATE BOND MARKET
MOODY'S •
SEASONED

WEEK ENDING:

1970 - May

1
8
15
22
28

8.91
8.98
9.10
9.05
9.20

MOODY 1 S
SEASONED

WEEK ENDING: "

1970 - May

June

1
8
15
22
28
5

12

i
i
!
j

!

19 i
6r/|

2

8.30
8.42
• 8.55

PER CENT
SOLD BY END
OF WEEK

195
345
610
284
222

99
100
97
62
96

7.92
7.99
8.09
8.16
8.21

. 9.05
9.23
9.30
n.a.

June 5
12
19
26£/

GROSS
OFFERINGS

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

261
383
517'
55 Oe

BONDS SCHEDULED
2,717
2,636*
2,385*
1,044
819

84
89
92
n. a.

1,069
1,285
869
n.a.

MUNICIPAL BOND MARKET
VOLUME 2
[ PER CENT
GROSS
SOLD BY END
OFFERINGS I
OF WEEK

6.50
6.55
6.70
6.74
6.80

6.79
6.89
6.96
7.02
7.12 .

196
113
319
250
245

6.75
6.85
6,95
n.a.

6.92
7.03
7.03
n.a.

90
302
403
22 5e

/

,
1
I BONDS SCHEDULED
| WITHIN 28 DAYS

77
68
70
63
86

530
624
449
508
308

69
72
79

608
754
398
n.a.

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, ra^ed 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 bv the' Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:
*

Sou footnotes to Table 3

AT&T rights offerings included in May estimate.




TABLE 2: Details on Inventories
DATE
OFFERED

1
, 1

6/18
6/17
6/17
6/10
.6/10
6/10

OFFERED

CORPORATE BONDS IN SYNDICATE END' OF LATEST WEEK "
•
.RATING AND "
YIELD CALL PROTECTION
ISSUER
COUPON

AMOUNT
J M I L - 9)

.

General Tel. Kentucky
Jersey Central Power & Lt *
Consumers Power
Pullman Trans.
Lone Star Gas.
Union Lt.

14. 0
,0
12.
60.
,0
30.,0
30.,0
10.
,0

DATE
1
| RELE\SED

,87
9.
,80
9.
.50
8.
10.
.00
.75
9,
.50
9.

70%
60 %
50 %
98 %
90 X
20 X

A
5 yrs.
A
5 yrs.
Aaa 6 yrs.
A
10 yrs.
A
5 yrs.
Aa
5 yrs.

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

AMOUNT

6/15

6/9

10.00
10.00
8.3/4
10.00
9.75
9.5/8

ESTIMATED .PROPORTION SOLD

25.0

West Penn. Power

9.5/8

9.40

+ 15

Aa 5 yrs.

50 7
o

INVENTORIES 1
DATE

MUNICIPALS
BLUE LIST

SYNDICATE

CORPORATES
IN SYNDICATE

1970 - May

June
No call protection.
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 Friday.




BONDS IN SYNDICATE
Friday f i g u r e s

CORPORATE BONDS IN SYNDICATE

200
100

MUNICIPAL BONDS IN SYNDICATE
300

200
100

SEPT.

DCC.

68




JUN.

1969

SEPT..

DEC.

MAR.

JUN.

1970

SEPT.

DEC.

/

.

DATE

TABLE 3: High Grade Bond Yields

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
CORPORATE
Aaa"2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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 (1/26)
4.07 (8/8)

1969 - High
Low

8.85 (12/5)
6.90 (2/21)

7.84 (12/26)
6;55 (1/3)

6.97 (12/26)
5.96 (1/24)

6.90 (12/18)
4.82 (1/28)

1970 - High
Low

9.30 (6/19)
8.20 (2/27)

8.55 (6/19)
7.79 (3/6)

7.55 (5/29)
6.60 (3/6)

7.12 (5/29)
5.95(3/12)

9.10
9.05
9.20

8.09
8.16
8.21

7.12
7.17
7.55

6.96
7.02
7.12

9.05
9.23
9.30

8.30 ;
8.42
8.55

7.33
7.43
7.41

6.92
7.03

1970 - May 15
22
29
June 5
12
19
1

\

7.03

New corporate issues, with call protection, adjusted (as described iri
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 In-,
vestors Service.
N o t e — H i g h s and lows are for individual series and may be on different dates
for different series.




i

HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

U S. GjOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966




1967

1968

1969

1970

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of doHars)
GROSS PROCEEDS
STATE AND LOCAL 2

CORPORATE 1

PERIOD
1970
January ~
February
March

2,636
1,802
3,539

April
May

3,000e
3,500e
2,800e

1969

1968

1970

1969

1,338
1,212
,1,499

1,262
987
538

1,178
1,158
1,404

1,801
1,110
737

1,318
1,143
1,395

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

2,787
3,648
2,464
2,982

3,840
3,856
4,612
4,366

6,435
8,899
11,881

7,956
12,008
16,574

2,075
2,045
2,098

1,771
1,608
1,799

i
j
'

2,748
2,076
-2,530

1,428
1,866
2,411

,
j

1,630
1,000e

j

l,050e

July
August
September

2,478
1,427
2,427

2,143
1,432
. 1,557

October
November
December

1,933
2,375
2,532

2,129
1,767
2,054

6,218
7,354
6,332
6,840

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

13,572
19,904
26,744

10,882
16,015
21,965,

1st
2nd
3rd
4th

Quarter
Quarter
Quarter.
.Quarter

1st, half
Three quarters
Year

7,977e
9 ,300e

Excluding finance companies
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year

6,170
7,037

5,107
5,427
4,785
' 5,654

1968

J

!'

1

4,049e
3,680e

|
3

j
1

20,973
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.

Note:

AT&T rights offering included in,May estimate.




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
1

QUARTER
OR
MONTH
1969 - I
II
III
IV
1970 - I

1969 - M a y
June
July
Aug.
Sept.
Oct.
No.v.
Dec.
1970 - Jan.
Feb.
Mar.
Apr.e/
May e /

1

TOTAL
6,218
7,354
6,332
6,840
7,977
2,076 1
2,530
2,478
1,426
2,427
1,933
2,375
2,532
2,636
1,802
3,539
3,000
3,500

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
' AND
MEMO:
BONDS
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
PLACED
STOCK
FOREIGN | CONVERTIBLE
OFFERED
2,657
3,411
3 j 186
3,479
4,577

1 ,540
1 ,673
1 ,347
1 ,053
1 ,235

2,023
2,268
1,797
2,307
. 2,147

871
1,272
1,279
685
1,222
969
1,164
1,346
1,5.95
1,068
1,914

510
514
609
259
479
313
226
514
516
266
471
400
300

694
744
589
482
726
651
984
672
525
468
1,154
600
200

2,000
3,000

1,355
1,126
750
809
922

215
227"
289
115
222

463
233
214
167
369
105
303
401
387
249
286
330
200

28
137
132
122
35
59
8
48
61
33
128
He a #
.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

2,584

1=
,346
L ,878
1.
,544
L ,967
2 ,085

569
691
875
362
625
260
453
601
811
357
1,416
800
850

392
702
493
507
544
745
622
600
639
540
906
960
450

1,407
1,773
1,862
1,314

Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are availa!,u

>




A

COMMUNICATIONS

OTHER
ISSUERS 1

473
432
684
598

2,993
3,266
2,243
2,961

766

2,543

197
191
286
126
272 .
120
201
277
234
226
306
25
1,800

915
946
826
433
984
808
1,099
1,054
952
680
911
1,215
400

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

• ' ISSUER

TYPE

2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATI- OR
• N - T INTERI;
IMS R COST

OFFERING
YIELD

MOODY':
RAT INC

Corporates
Debs .
100.0
Scott Paper Co.
25.0
Central Hudson Gas & Elec. Co. 1st Mtg.
23.0
Mapco Inc.
i Debs
30.0
1st Mtg.
Western Mass. Elec. Co.
Pref. Stk.
15.0
Western Mass. Elec. Co.
38.2
Com. Stk.
American Natural Gas Co.
Pref. Stk.
15.0
Tampa Elec. Company
24.6
^General Public Utilities Corp, Com. Stk.
35.0
1st Mtg.
Kansas City Power & Light Co.
Tampa Electric Co.
Pref. Stk. ' 15.0
Conv. Sub. - 40 .0
Chase Manhattan Mortgage &
Realty Trust
Debs.
Chase Man. Mtg. & Realty Trust, Benf. Int.
60.0
Consumer Power Co.
Com. Stk.
40.0
Mich. Consolidated
1st Mtg.
30.0
P.P.G. Industries
S.F. Debs. 125.0
San Diego G & E
Pref. Stk. . 16.0
Holiday Inns
1st Mtg. .
30.0
Texas Eastern Transm. Corp.
1st Mtg
50.0
Lone Star Gas Co.
S.F. Debs.
30.0
1st Mtg.
West Penn. Power
25.0
General Telephone of Calif.
Debs.
70.0
. Consolidated Edison Co., N.Y. Com. Stk.
73.4
Cincinnati Gas & Electric
Pref. Stk.
35.0
Washington Natural Gas Co.
Bonds
15.0
Pullman Transport Leasing Co. Equip. trst.
30.0
Ctfs.
Consumer Power Co.
60.0
1st mtg.
30.0
South Carolina Elec. & Gas Co . Bonds




2000
2000
1975
2000

8.88
9.38
11.00
9.38

8.90
9.33
11.00
9.28

2000

9.13

9.05

Aaa

1990

6.75

6.75

N.R.

1995
1995

10.00
9.00

10.00
9.05

A
Aa

1980
1972-90
1995 •
2000
2000

9.50
10.50
9.75
9.63
9.75

9.50
10.50
9.75
9.40
9.70

Baa
.'A
Aa
A

1995

10.25

10.36

Baa

1985
1976
2000

10.00
8.64
9.88

10.00
8.50
9.98

A
Aaa
A

.

.

Aa
Aa
Ba
Aa

--

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
June 1through Junel9, 1970

ISSUER

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATINC

Corporates
R.C.A.
R.C.A
Appalachian Power Co
Appalachian Power Co.
New Jersey Bell Telephone Co.
CIC Industries
Public Service Elec. & Gas Co.
Fedders Corp




Debs
75;0
Notes
75.0
1st mtg.
50.0
1st mtg.
20.0
Debs
100.0
Debs
25.0
Cum. Pref
Stock
35.4
Com. Stock 18.8

' 1990
1975 .
1975
1995
2010
, 1975

9.25
9.00
9.00
10.13
9.35
11.00

9.25
8.94
9.00
10.00
9.35
11.00

A
A
A
A
Aaa
Baa

TABLE b. Large Lonci io nn Public Security Issues f r New Capita I (continui ri>
"
o
' • ( t i i than U.S. Treasury)1 .
Ole
AMOUNT
. , ISSUER

TYPE

2

fMILLIONS

OF
DOLLARS)

COUPON
' I
i
. 1 MOODY'S
RATE OR
1 RATING
MATURITY NET INTER I:;<
I •
[ EST COST
VILLI)
'
|

I

State and Local
Atlanta Airport
Winchester, Mass.
Illinois Bldg. Auth
Alabama, State of
Delaware State Highway Dept.
Pueblo Co. S/D #60
Jefferson Parish, La.
Minneapolis-St. Paul, Mim.
Metro Area.
California, State of
Prince Georges County, Md.
Delaware River Port Auth, N.J.
Alaska, State of
Richmond, Va.
Onondaga Co. N.Y.
Houston, Texas Indp. Sch. Dist.

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

41.0
12.0
41.7
15.0
17.0
15.7
15.7
42.0
100.0
,35.0
75.0
12.9
27.0
16.0
10.0

1

1974-2000
1971-1985
1970-1991
1971-1989
2002
1971-85
1971-95

.
.

8.04
6.87
6.69
7.44
6.96
6.00

6.
,00-7.40
,00-6.70
5.
4.
,75-7.00
4.
,85-7. 10
.25
7.
5,
.10-7.
,00
,40-7.
5.
,10

1973-90
1971-85
1971-95
2010
1971-75
1971-90
1971-99
1971-90

6.94
6.25
6.91
7.83
5.91
6.32
6.60
6.72

5,
.50-7.
,30
Aa
5, 00-6.
.
Aa
.90
5,
.40-7.40
A
—
7 .83
5 .10-5.
.75 . Baal
—
4,
.90-6.
.70
5 .00-6.
.90
Aaa
.25
5 .00-7,
A-l

Baa
Baa
Aa
A-l
A
A
——

Other.
Bonds
Federal Home Loan Banks
300.0
1972
8.20
8 .20
Bonds
250.0
——
Federal Home Loan Banks
1973
8.40
8 .40
T.V.A.
Bonds
50.0
1975
8.29
9 .20
Aaa
T.V.A.
'
Bonds
50.0
1.975
8.66
8^0.:
Aaa
* S i g h t s offering.
1
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2
In case of State and local government securities, G.O. denotes general' ohli gat ion ;
Rev.-Ut. , revenue obligations secured only by income from- publ i c u t i l i t i e s ;
Rev. -Q. -lit. , revenue bonds secured only by income from quas i -ut.i 1 it i es ; Kev.-S.T.',
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
3
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
i OF OFFERING

Corporates
Debs.
1st Mtg.
Debs.
Notes
1st Mtg.
Equip. Tr.
Ctfs.
Equip. Tr.
American Airlines Inc.
Ctfs.
Debs.
B-W Acceptance Corp
Debs.
Dayton Hudson
Debs.
ITT Continental Baking Co.
Monsanto Co.
Debs.
Bonds
Baltimore Gas & Elec. Co.
Commonwealth Edison Co.
Pref. Stock
Bonds
Carolina Power & Light Co.
Debs.
*Beneficial Corp.
Washington Gas Light Co.
1st Mtg.
Debs.
*Ryder System Inc.
Debs.
Raybestos-Manhattan, Inc.
Southern Bell Tele & Tele. .
Debs.
^Continental Investment Corp.
Conv. Debs
S.F. Debs.
*Borg-Warner Corp.
Debs.
*Addressograph-Multigraph Cccp,
Debs.
Ramada Inns
Conv. Debs .
Avco Corp.

American Esna Corp.
Boston Edison
General Foods Corp.
: General Foods Corp.
Louisville Gas & Elec. Co.
Union Tank Car

Monogram Industries
Gamble-Skogmo, IncI
^Detroit Edison
*Detroit Edison
*Beck Industries
•Consolidated Natural Gas Co.
•Washington Gas Light Co.
Gulf Power Co.
Brooklyn Union Gas Co.
*Duquesne Light Co.
Diamond States Telephone Co.
Pacific Power & Light
Florida Power & Light Co.
Puget Sound Pwr & Lt. Co.
*Bell Telephone of Penn.
Kansas-Nebraska Nat.Gas Co.
*McDonnell Douglas Corp.
Western Electric Co.




25.0
60.0
75.0
50.0
20.0
25.0
78.5
35.0
25.0
40.0
150.0
45.0
100.0
50.0
75.0
20.0
35.0
25.0
150.0
30.0
35.0
60.0
25.0
50.0

25.0
Notes
20.0
Cap. Notes
Gen.&Ref .Mtg. 75.0
Com. Stk.
58.0
Debs.
15.0
Debs.
40.0
1st Mtg.
40.0
Bonds
16.0
30.0
1st Mtg.
40.0
1st Mtg.
Debs. ;
15.0
25.0 .
1st Mtg.
60.0 '
1st Mtg.
30.0
1st Mtg.
100.0
Debs.
Debs.
15.0
Notes
100.0
150.0
Debs.

June
June
June
June
June

22
22
22
22
23

June 23
June
. June
June
June
June
, June
June
June
June
June
June
June
June
June
June
June
June
June

24
24
24
24
24
25 '
24
24
29
29
30
30
30

June
June
July 1
July 1
July .
6
July 7
July 7
July 8
July 9
J'ily 9
July 13
July 14
July 15
July 16
July 21
July 22
July
Sept.29

.

/

.

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local
*Maine, State of
*Monroe ^€o. , N. Y."
*Austin ISD, Texas
*New York State Hsg. Fin. Agency
^Suburban Erie Bldg. Auth. Pa.
Mississippi Highway
Genesee Co., Mich.
Los Angeles, Calif., Parking Aih,
Maryland, State of
Tulsa, Oklahoma
Detroit, Michigan
Nassau Co., New York
~San Francisco BARTS
North Miami," Florida
^Oakland Co., Michigan
"Texas, State of
^Kentucky
^Oakland Co., Michigan
j
#
*0aklahoma City., Oklahoma

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

15 .3
11 .4
14 .8
87 .5
16 .7
20.
.0
.2
11,
25,
.0
46.
.8
23.
.5
46,
.0
.6
43,
-o
50.
12.
,0
,0
15.
15.,0
10.,0
15. 6
21. 3 .

.

June
June
June
June
June
June
June
June
July
July
July
July
July
July
July
July
Aug.
Aug.
July

23
23
24
24
24
30

1
1
7
8
13
14
14
0
1
5
21

*
1

Included; in table for first time.
Includes corporate and other issues "of $15 million and over; State and local
- Government issues of $10 million ai)d over.
2
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
' Postr-cncncntc:

Utic-.,
bide.

Co:r.i-n:'.ty School .District

rejected ell
,

Ri.r?.i:-f;tor. northern Inc. - 60.0 portioned bocause. of market
condition::.
' .




TABLE 8: Stock Prices and Volume

I

r
TRADING VOLUME r

STOCK PRICES

. 500'

D.J. - IND.

1968 - High
Low

108.37(11/29) 985.21(12/3)
87.72(3/5)
825.13(3/21)

1969 - High
Low .

106.16(5/14)
89.20(7/17)

AMEX
33.24(12/2Q
21.97(3/25)

968.85(5/14) 32.91(1/3)
769.93(12/17) 25.02(7/29)

82.1(6/7)
34.0(2.23)

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

82.6(10/17)
32.8(4/4)

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

1970 - High
Low

93.46(1/5)
69.29(5/26)

811.31(1/5)
631.16(5/26)

27.02(1/8)
19.36(5/27)

80.7(5/26)
44.6(3/20)

28.4(1/2)
10.3(6/12)

1970 - May 1
8
15
22
29

81:44
79.44
76.90
72.25
76.55

733.63
717.73
702.22
662.17
700.44

21.99
21.69
21.11

56.8
52.9
56.7
59.7
80.7

20.3

June 5
12
19

76.17
74.21
77.05

695.03
684.14
720.43

20.06
20.71
20.99
20.72

17.0
1:6.1
18.6
27.3

71.9
39.0
48.0

21.00

1

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

2

1941-43 = 1 0 .

3

Average dollar value of shares listed.

4

NYSE is the New York Stock Exchange; AMEX is the
Total number of shares traded per week (millions
normally conducted for 5-1/2 hours per day and 5
per week. In recent years, however, abbreviated
over the time periods, shown below:

27.4 .
i 10.3
13.0

'

:

Through:
August 8, 1967
January 22, 1968
June 30, 1968
January 3 , 1 9 6 9
July 7, 1969
January 2, 1970




Highs and lows are

August 20, 1967
March 1, 1968
December 31, 1968
July 3, 1969
December 31, 1969
May 1, 1970

American Stock Exchange«
of shares). Trading is
days per week, or 27-1/2 hours
trading to the extent, and

Hours/
Day

Days/
Week

>

4
5-1/2
4
4-1/2
5

<
'

5
5
4
5
5
5

Hours/
Week
20
20
22
20
22-1/2
25

STOCK PRICES AND TRADING VOLUME
AM EX
36

"

"

. '

'

Weekly

.

-'

(Ind.)

(500)

1280 128

STOCK PRICES

AMEX PRICE LEVEL INDEX /

28

1200 120

\f]

S&P's 5 0 0
j 1040 104

960

88

800

80

720

D.J. IND.

96

880

20 [
•

72

60

AMEX TRADING VOLUME (TOTAL FOR WEEK)

40

100
NYSE TRADING VOLUME (TOTAL FOR WEEK)

80

60
40

M

aiis
1966

1967




1968

1970

TABLE 9: Security Credit

END OF PERIOD

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

Jan.
Feb.r/
Mar. r /
Apr.&/

3,077
3.084
3.085
2,783
2,577
2,579
2,753;
2,613
2,803

4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,642

6,683
6,562
6,353
5,970

2,626
2,463
2,441
2,246

4,057
4,099
3,912
3,724

4,940
5,040
5,070
4,970

2,620
2,570
2,520
2,580

7,8707,670
7,560
7,610
7,590
7,550

4,680

2,430
2,370
2,370
2,330

7,110
6,940
6,890
6,710

-20
10
-30
-40
-30
-50
-50
-50
60

-40
IIP
-360
-210
-200
-110
50
-20
-40

-274
430
-260
-699
-496 •
20
204
-132
334

-271
7
1 •
-302
-206
2
174
-140
190

-57
423 ,
-261
-397
-290
18
30
8
144

-150
-40

-440.
-170
-50
-180

-762
-121
-209
-383

-177
-163
-22
-195

-585
42
-187
-188

1970 - Jan.
Feb.r/
Mar. r /
Apr. p /
Change in.
Outstanding:

1970

8,044
8,474
8,214
7,515
7,019/
7,039
7,243
7,111"
7,^5

5,000

5,570
5,670
5,340
5,170

- Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

NET CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

2,760
2,770
2,740
2,700
2,670

1969 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1969

8,330
8,440

CUSTOMERS'
NET DEBIT
BALANCES

4,570
4,520
4,380

-20
100
-330
-170
-170
-60

100
30
-100
-290
-110
-50
-140

regulated oT not.




-40

8,080

_
•

/

TABLE 10: Savings Flows at N on hank Depositary Intermediaries
($ millions)

DATE

.MUTUAL SAVINGS BANKS•
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY :
GROWTH
NET
1
RATE
FLOW

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
ANNUAL
NEW
MONEY 2
NET
GROWTH
1
FLOW
RATE

NET
FLOW

ANNUAL
GROWTH
RATE 1

6,129
2,738
-1,003

15,731
11,607
6,371

9.4
6.3
3.4

NEI
NEW

Not Seasonally Adjusted
>,082
l,208
',551

1967
1968
1969
1969 - Mar.
Apr.
May
1970 - Mar.
Apr.
May £/

2,376
1,143
- 747

10,649
7,399
4,020

__

642
-197

81
- 325
227

1,370
- 516
642

479
- 543
601

2,012
- 713
949

560
868
828

136
200

1,655
207
754

537
188
707

2,165
201
1,054

449
52
907

-~

307
510
- 6
300

9.4
6.0 ,
3,1

9.3
7.1
4.0

•

__
—-

8,505
3,882
-1,749

Seasonally Adjusted
1969 - Dec.
1970 - Jan.
Feb.
Mar.
Apr.
May P./

229

4.1

-117
298
244
359
334

-2.1
5.4
4.4
6.4
6.0

47
-754
247
1,021 . 973
638

0.4
-6.7
2.2
9.1

8.6
5.6

" 276
-871
545
1,265
1,332
972

1.6
-5.2
3.3
7.5
7.9
5.7

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 967, 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.




SAVINGS FLOWS (seasonally adjusted)
Monthly

M i l l i o n s of

2000
1600
1200

TOTAL

800
400

0

400

1200
SAVINGS & LOANS

800
400
' +

0

400

800
MUTUAL SAVINGS BANKS

400
+
0

400
1966




1967

1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

1969 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1970 - Jan.
Feb.
Mar.

l

NET CHANGE
OUTSTANDING COMMITMENTS
ALL
ALL
MUTUAL
SAVINGS
TOTAL
SAVINGS &
SAVINGS &
/BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, S easonally Adjusted) 1/

TOTAL

10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4
8.2
7.9
7.9

.

.

1

•

7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8 :
5.6
5.4
. 5.2

3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6
2.6
2.5
2.5

\

,

.18
.15
-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25
-.17
-.31

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

.06
.02
-.05
-.06
-.10
-.12
-.13
-.09
-.06
-:i3

.12
.14
-.06
-.11
-.22
-.24
-.18
-.23
-.18
-.12
-.22
..

~ -

\

2 3

-,17

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




.04
-.07
-.02

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of.dollars

TOTAL

S&L'S

I n c l u d e s b u i l d i n g loans beginning A u g u s t 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings

TOTAL
INCLUDING
FNMA-GNMA

DATE

1966
1967
1968
1969

1

FINANCIAL INSTITUTIONS
LIFE
1
MUTUAL
SAVINGS & |
INSURANCE
SAVINGS
COMMERCIAL
TOTAL 1
LOAN
BANKS
BANKS
ASSOC.
I COMPANIES
Not Seasonally Adjusted

18,105
20,016
23,781
24,051

15,782
18,219
21,273
19,676

4,705
4,639
6,677
5,535

1.969 - Feb.
-' Mar.
Apr.

1,750
1,964
2,229

1,529
1,759
2,038

1970. - Feb.
Mar.
Apr.

1,149
1,088
n.a.

1969 - Apr.
- May
- June '
-July
-Aug.
- Sept.
- Oct. ,
- Nov.
- Dec.
1970 - Jan.
-Feb.
- Mar.
- Apr.

2,720
3,153
2,787
2,682

3,761
7,520
9,350
9,407

480
519
627

228
198
204

671
917
1,026

616
559
n. a.

100
0
200

106
153
160

223
317
517

2,117
2,032
2,153
1,698
1,910
1,876
1,734
1,652
1,906

1?910
1,808
1,875
1,364
1,380
1,365
1,166
1,069
1,292

567
534
440
151
310
383
244
237
347

240
251
230
18L
157
137
124
146
235

1,493
1,604
1,228
n.a.

937
1,105
712
n. a.

288
285
114
141

24
143
197
205

.

F::HW;NMA

2,323
1,797
2,508
4,375

4,596
2,907
2,459
2,052

/.

150
125
181

-

187
89

221
205
191
533
529
477

Seasonally Adjusted

l
.

|

899
.854
1,022
859
720
654
627
547
576

194
169
183
173
193
191
171
139
134

400
436
276
387

225
241
125
n.a.

.

207
224
278
334
530
511
568
583
614
556
499
516
494

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 arc not made in the monthly series. Altogether, these groups'
accounted for 87 per cent of the net-increase estimated for all holders in 1967.




23

NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

.

B i l l i o n s of

dollars

3.0

2.5
TOTAL, INCL. FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1967

I
t

t
k
.i



1968

1969

1970

TABLE 13: Net Increases in Mortgage Debt Outstanding '
Billions of dollars, SAAR

2

TOTAL

RESIDENTIAL 3

1 - to 4 FAMILY

1966 - IIIp
IVp

18.7
15.2

11.0
9.2

8.4
7.0

1967 - Ip
IIP
IIIp
IVp

15.6
20.5
27.0
27.5

10.0
13.8
19.6
19.9

6.8
10.5
15.7
16.0

1968 - Ip
HP
IIIp
—IVp

27.1
25.9
26.5
30.1

18.4
18.0
18.2
20.5

15.4
14.8
14.6
16.5

3.0
3.2
3.5
4.0

6.3
5.7
6 . 5 ...
7.8

9.4
8.9
10.1
11.7

2.3
2.2
1.8
1.8

1969 - Ip
IIP
IIIp
IVp

30.4
28.5
25.1
25.7

22.1
21.2
20.1
18.6

17.9
16.5
15.5
13.7

4.2
4.7
4.6 '
4.8

6.1
5.0
5.0
6.0

10.3
9.6
9.5
10.8

2.2
2.3
1.8
1.2

19.7

13.4

8.9

5.2

9.7

1.1

QUARTER

: 1970 - Ip

„

MULTIFAMILY

MULTI-AND
COMMERCIAL

2.6
2.1
.

COMMERCIAL
5.5
4.2

8.2
6.2

2.2
1.8

3.2
3.4
3; 9
3.9

3.8
.4.9
4,9
4.9

7.2
8.2
8.7
8:8

. 1.8
1.8
2.5
2.7

4.3

"

FARM

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
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 nqnfarm,mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
2 "May differ somewhat"from related" flow' of funds series mainly because of more
aggregative type of seasonal adjustment.
.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

B i l l i o n s of d o l l a r s , s e a s o n a l l y a d j u s t e d a n n u a l r a t e

32
TOTAL

24

TOTAL
RESIDENTIAL

1-4 FAMILY

COMMERCIAL

" MULTIFAMILY

1966




1968

1970

TABLE 14: FNMA Auction Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
ACCEPTED '
1-YEAR 1
90TOTAL
TOTAL
6MONTH & OVER
OFFERED
DAY

IMPLICIT YIELD2(per- cent)
90DAY-

6MONTH

1-YEAR
& OVER

1970 - Mar.

9
23

354.6
395.4

276.4
239.0

60.7
47.5

136.5
124.5

79.2
67.0

9.16
9.12

9.19
9.14

9.13 ,
9.12

Apr.

6
20

268.4
315.7

190.2
185.2

41.0
54.0

121.4
98. £

27.8
33.1

9.05
9.02

9.07
9. 04

9.10
9.10

May

5
11
18
25

443.3
269.2
300.3
289.5

195.5
102.2
136.3
145.2

43.5
26.0
32.4
38.9

121.1
63.2
86.4
86.7

38.9
13.0
17.5
19.7

9,01
9.04
9.11
9.15

9.04
9.07
9.13
9.18

9.10
9.13
9.18
9.22

Junei

1
15

2,24.2
249.7

113.8
127.9

31.1
34.2.

71.4
86.7

11.3
7.0

9.20
9.27

9.24
9.30

1

9.27
9.31

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, sub, ject 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.
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 servi cers.
FNMA announced limit of accepted bids for next week's auction.




'

•

7

I

FNMA "AUCTION" RESULTS
AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD

* 6 MONTHS

V

1 YEAR
AND OVER

-

\

\

y v Z
\

! 3 MONTHS

,,

l

V

1 •

I

I'

^

1

1

- 1

i'

:

1 '

1
12

IMPLICIT YIELD

10

8
$ Millions

800
600
TOTAL BIDS RECEIVED
400

200
|

|
JUNE

[TOTAL BIDS ACCEPTED
AUG.

OCT.

1969




'DEC.

0
FEB.

APR.

JUNE

/

1970

AUG.

OCT.

DEC.

TABLE 15: Private Housing Starts and Permits
STARTS

*

DATE

9 - Apr.
.May
June
July.
' Aug.;
Sept.
Oct.
Nov.
Dec.
0 - Jan.
Feb..
Mar.
, Apr.
1

2

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

f

1,505
1,533
1,507
1,429
1,376
1,481
1,390
1,280
1,402

797
877
826
803
752
828
766
762
776

1,059
| 1,306
1,384
1,181

577
725
702
693

.

159 .0
155 .5
•147,
.3
.2
' 125,
124,
.9
. 129.
.3
• 123,
.4
,6
94.
84.
,1

708
656
681
626
624
653
624
518
626
482
581
682
488

TOTAL

.

66. 4
74. 3
113. 9
123. 8

T

UNADJUSTED
TYP E OF FINANCING
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

23.0
21.1
21.5
20.8
22.4
18.3
25.1
18.8
23.2

4.4
4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

131.6
130.1
-121.2
99.7
98.3.
106.2
93.3
74.7
57.9

1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,239

16.5
17.5
25.2
32.4

3.4
3.9
4.8
5.4

46.5
52.9
83.9
86.0

1,013
1,137
1,099
1,249

V

Total starts are Census estimates including farm for both permit-issuing and
noi,-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
M o n t h l y , a n n u a l rates

*

M i l l i o n s of u n i t s

SEASONALLY ADJUSTED

HOUSING STARTS

16

1.2
BUILDING PERMITS

PER CENT OF UNADJUSTED TOTAL STARTS

MULTIFAMILY
40

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

T A B t E 16: Mortgage and Bond Yields
FHA
MORTGAGES DATE

* 1
25 -YEAH!30-YEAR
!.

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low
1969 - High
•

L o w

_

1 9 6 9 - Dec.

.

6.
,26
5.
,43
,6.
,73
n. a.
.
n. a.
n.
n.
n.
n. a.
n. a.

CONVENTIONAL
MORTGAGES
3

n.a.
5^44
6.81
6.81
6.29
7.52
6.78
, 8.62
7.99

6 .30
5 .80
6 .70
6 .70
6,
.40
.40
7,
6 .75
8.
.35
,55
7.

8.62

8. 35

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORT-'
GAGES .

-

1

|
NEW
J Aaa CORj BORATE
1
BONDS ^

| .4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

.23
.25
.30
. 11
-.12
.12
-.27
.40
.13

5.25
4.41
5.82

1.69
.77
1.16

6.51
5.18
6.79
6.15
8.75
6.91

1.28
.27
1.20
.26
1.08
-.13

-.27

8.75

-.13

197,0 - Jan.
n. a.
8. 55
8.46
Feb.
n.
9.29
8. 55
.
-.74'
8.30
.99
Mar.
n.
9.20
8. 55
-.65
8.60
.60 .
Apr.
,
n.
9.10
8. 55
-.55
8.60
.50
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.'.
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-vear 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 mortgages. 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^
Based on FHA-field-of fice opinion on typical interest rates - (rounded) on conventional first mortgages prevailing in the market areas of insuring office
• cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to- that date, rate related to both new as well as. ekisting-home mortgages.- .Dashed line indicates this change in the series.
See-note for Table 1.




AND BOND YIELDS
12

11

10

9

8

7

6

5
Aaa CORPORATE BONDS:
NEW ISSUES

_

^

4

S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200

100
+
0

100
1962




1964

1966

1968

1970

32
TABLE 17: Conventional Mortgage Terms
1

/

DATE

NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
RATI:
(PER
(YEARS)
TIVE
(PER
CENT) RATE
CENT)
3
2 ,

1

•
x
LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4

EXISTING HOMES
CON- FEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PRICK
(PER
RATE.
TIVE
RITY
RAT 10
CENT) RATE (YEARS) (PER
(PER,
CENT)
CENT.)
2
3

LOAN
AMT.
($00C
4

19.69
Apr.
May •
;
June
July
Sept.
Oct.
Nov.
Dec.
1970

7 .47
7 .50
7 .62
7 .76
7 .86
7,
.89
7,
.99
7,
.97
8,
.07

0.96
0.88
0.84
0.92
0.86
0.92
0.89
0.96
1.06

7 .62
7 .65
7 .76
7 .91
8 .00
8 .05
8,
.13
.13
8,
.25
8,

25 .4
25 .8
25 .6
25,
.5
.2
25.
25,
.3
25.
.3
25.
.3
25.
,4

72 .6
73 .2
73 .0
72 .0
72 .3
72 .9
72 .8
72 .8
,71.
.9

1.08
1.09
1.11
1.02

8. 34
8. 41
8. 47
8. 40

25. 0
25. 2 '
25. o,
24. 8

.3
69.
71,
,8
71. 1
71. 1

s

24.8
7.46
25.0 • 7.54
24.9
7.64
24.5
7.79
24.3 • 7.90
25.0
7.98
24.6
8.00
24.6
8, 00
25.0
8.08

0.85
0.83
0.86
0.91
6.93
0.91
0.90
0.90
0.93

7.60
7.68
7.79
7.94
8.05
8.13
8.15
8.15
8.24

23 .0
22 .7
22 .8
22 .8
22 . 6
22 .2
22,
.6
22,
.6
22,
.9

71.8
71.9
71.4
71.7
71.2
70.7
70.4
70.4
70.6

19.9
19.7
20.1
20.1
19.8
19.2
19.5
20.1
20.8

0.94
1.02
0.98
0.90

8.29
8.41
8,43
8.35

22. 4
22. 4
22. 6
22. 8

'
70.3
70.2
70.4r
70.4

20.5
20.4
20.6
20.4

I

8.
Jan;
1 16
Feb.
8. 23
Mar. r/ 8. %9
8. 23
Apr.

25.1
24.9
25.1
.24.5

8.13
8.23
8.26
8.20

1

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based-on probability sample survey of charac- '
teristies 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 own er- ' b u i l d e r s R e l a t e d series on conventional mortgage rates only, based on unweighted
opinions of.field-office directors of the Federal Housing Administration, are available
somewfrkt sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates — in Table 16.

2

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^

3

4

Includes fees & charges amortized over a 10 year period in addition to the contract
"interest rate.
Derived by FRB.




CONVENTIONAL MORTGAGE TERMS
Monthly

'

"

•

Years -

30
MATURITY
NEW
25

EXISTING

LOAN/PRICE RATIO

NEW

EXISTING

Thousands

LOAN AMOUNT
30

NEW

20
EXISTING

1964




1966

1970
* CHANGE IN SERIES

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