Full text of H.16 Capital Market Developments : November 28, 1960

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-Not. for..,duplication PECOHTROTXim APTiB SIX MONTHS
;
j

»

November 28, i960
'CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES AND CANADA
(Including Quarterly Review of S t a t e and
Local Government Security Financing)
P a r t I - United S t a t e s

Last week the volume of new p u b l i c s e c u r i t y financing was
r e l a t i v e l y small. Two l a r g e corporate bond issues with proceeds of $100
m i l l i o n were sold and one $25 m i l l i o n S t a t e and l o c a l government bond
i s s u e was p u b l i c l y o f f e r e d . This week, ending December 2, one $50 million
corporate o f f e r i n g i s t e n t a t i v e l y scheduled f o r s a l e and two S t a t e and
l o c a l government bond i s s u e s with p a r value of $30 m i l l i o n a r e on the
new o f f e r i n g c a l e n d a r . A $100 m i l l i o n FNMA i s s u e i s a l s o scheduled.
Bond y i e l d s - Changes i n bond y i e l d s were mixed and minor l a s t
week. Yields on corporate,and U. S. Government long-term bonds increased
s l i g h t l y while y i e l d s on S t a t e and l o c a l government o b l i g a t i o n s were
stable.
S h o r t - and intermediate-term i n t e r e s t r a t e s - Yields on Treasury
b i l l s declined l a s t week while y i e l d s on intermediate-term U. S. Government o b l i g a t i o n s r o s e . Rates on 90-179 day d i r e c t l y placed f i n a n c e
company paper changed l i t t l e as most major f i n a n c e companies continued
t o quote t h e r a t e s announced two weeks ago.
Mortgage y i e l d s - In October, average y i e l d s i n t h e p r i v a t e
secondary market on s e l e c t e d unseasoned 5 - 3 / k p e r cent JHA new-home
mortgages declined s l i g h t l y f u r t h e r t o 6.09 p e r c e n t , 1$ b a s i s p o i n t s
below t h e high in January. Although the comparatively wide spread between
y i e l d s on HiA mortgages and on new i s s u e s of high-grade corporate bonds
again narrowed somewhat as bond y i e l d s r o s e , i t was s t i l l t h e widest f o r
any October,in the l a s t f i v e y e a r s .
Sta te and Local Government Security O f f e r i n g s
in the Third Quarter of i960
S t a t e and l o c a l governments s o l d $1.8 b i l l i o n of l o n g - t e r a
bonds during the t h i r d q u a r t e r of i 9 6 0 , one-seventh more than a year
e a r l i e r and only s l i g h t l y below t h e record t h i r d q u a r t e r volume i n
1958. For the f i r s t nine months t h i s y e a r , however, S t a t e and l o c a l
government f i n a n c i n g t o t a l e d $6.1 b i l l i o n , s l i g h t l y below t h a t i n t h e
coup a r a b l e period of 1959.




- 2 -

Long-term Security I s s u e s of State and Local Governments
Third Quarter 1955-60
( I n m i l l i o n s of d o l l a r s )

Issuing authority:
State
County and township
Municipality
School d i s t r i c t
Special a u t h o r i t y
Unidentified 1/
Total
Purpose of i s s u e :
; New c a p i t a l t o t a l
Schools 2 /
Highways, bridges and tunnels
R e s i d e n t i a l buildings
H o s p i t a l s and i n s t i t u t i o n s
Sewer and water
Misc. public s e r v i c e e n t e r p r i s e s
Veterans' a i d
Other
Unidentified 1 /

I960

1959

1958

1957

1956

1955

259
122
602
294
567

460
lbB
484
269
235

436
126
704
338
293

256
119
563
393
245

119
87
295
294
194

77
125
296
210
230
199

1,8W

1,596

1,897

1,566

988

1,136

hM

1,548

1*860

1,544

971

1,124

472
262
153
20
176
42
152
273

580
237
194
35
260
96
120
339

574
272
37
20
287
47
75
232

406
105
9
5
170
91
2
184

—

—

273
200
129
7
183
18
8
109
199

37

22

17

12

988

1,136
681
333

561
1*75
168
26
263
57
50
300
—

Refunding

—

4

48

Total

1,813

1,596

1,897

1,566

Fype of i s s u e :
General o b l i g a t i o n
Revenue

1,166

1,012
421

1,200
481

1,110
393

680
248

21

200
45
114
63

179
44
100
159

304
7
21
61

191
22
6
30

n.a.

50
136

1
161

2
215

64

61

122
1

1,843 ^ 1,596

1,896

1,566

988

1,136

Utility
Quasi-utility
Special t a x
Rental
\ P u b l i c Housing Authority
Federal Government loans 3 /
Total

M
127
342

V

n.a„—Not a v a i l a b l e .
1 / I s s u e s of l e s s than $500,000 not f u r t h e r c l a s s i f i e d i n 1955=
2 j Data f o r 1955 probably u n d e r s t a t e school i s s u e s by about o n e - f o u r t h because of
u n c l a s s i f i e d small i s s u e s .
3 / ^Coverage f o r 1957-60 i s broader than f o r e a r l i e r y e a r s .
/ 2 j / Less than $500,000.
Note.—Details may not add to t o t a l s because of rounding.
Source.—1955,
Bond Buyer and Federal Reserve; 1956-60, Investment Bankers Association

of America. Data f o r 1955 not s t r i c t l y comparable with data f o r l a t e r y e a r s .



Purpose of issue - Nearly a l l bonds sold during the t h i r d quarter
were f o r the purpose of r a i s i n g new c a p i t a l , as the volume of refunding
issues continued to be almost n e g l i g i b l e . Bonds t o finance a l l major
purposes of expenditures with the exception of v e t e r a n s ' aid were sold
in l a r g e r volume t h i s y e a r than l a s t . I t should be noted, however, t h a t
in August 19^9 Pennsylvania sold a $120 million bond issue t o provide
funds f o r v e t e r a n s ' a i d . New financing f o r highways, bridges and tunnels
ranked second in importance, t o t a l i n g $475 m i l l i o n , f o u r - f i f t h s l a r g e r
than a year e a r l i e r . Most of the increased volume t h i s year was accounted
f o r by the $181 million Chesapeake Bay Bridge and Tunnel Commission revenue
bond issue which was sold through negotiation in Augustj i t had been
t e n t a t i v e l y scheduled f o r sale several times since 1958,
Type of i s s u e r - Municipalities, special a u t h o r i t i e s and school
d i s t r i c t s were major groups of i s s u e r s s e l l i n g more bonds t h i s t h i r d
quarter than a year e a r l i e r , while S t a t e s , counties and townships sold
a smaller volume. Nearly half of increased financing by special a u t h o r i t i e s
t h i s year i s accounted f o r by the Chesapeake Bay issue and most of the
decline in financing by States i s a t t r i b u t a b l e to the l a r g e t o t a l l a s t
year r e f l e c t i n g the sale of the Pennsylvania issue. This year, i s s u e s
by municipalities and special a u t h o r i t i e s , each t o t a l i n g about $600 m i l l i o n ,
accounted f o r more than 60 per cent of the t o t a l . Municipalities have
been the most important group of i s s u e r s in each t h i r d quarter since 1957.
Type of issue - All types of bond financing were in l a r g e r
volume than in the t h i r d q u a r t e r 1959 except Federal Government loans
made t o State and l o c a l governments, which were about one-sixth smaller*
General obligation financing, continuing t o be the most important type
of issue, was n e a r l y one-sixth l a r g e r i n volume than i n the t h i r d quarter
of 1959. Revenue bond f i n a n c i n g t o t a l i n g nearly $500 million was a l s o
one-sixth l a r g e r t h i s year.
This i s the f i r s t time t h i s year t h a t financing through revenue
bond issues has been l a r g e r than in 1959= The decline in revenue bond
financing in the f i r s t half t h i s year from t h a t of 1959 was largely
accounted f o r by the smaller volume of very large issues ($100 million
and over). For the f i r s t nine months t h i s year s a l e s of revenue bonds
were nearly o n e - f i f t h smaller in volume while s a l e s of general obligations
were s l i g h t l y l a r g e r . Sales of public housing a u t h o r i t y bonds and Federal
Government loans w ere also made in l a r g e r volume during the recent three
quarters.
Table 2
. Proceeds from Selected Types.of Issuers
(In millions of d o l l a r s )
Revenue
General
bonds
obligations
I960
| 1959
I960
1 1959
1st
2nd
3rd
1st

Qtr.
Qtr.
Qtr.
9 months




1,263
1,296
1,166
3,745

1,2 41
1,410
1,012
3,662

480
776
491
1,747

772
949
421
2,142

-hStock p r i c e s - Common stock p r i c e s , a s measured by Standard
and P o o r ' s index of 500 common s t o c k s , increased s l i g h t l y l a s t week,
closing on Friday a t 56.13. Trading volume increased t o average 3.2
m i l l i o n shares a day.
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented i n t h e a t t a c h e d e x h i b i t s .
Developments i n the Canadian c a p i t a l markets are presented
i n P a r t I I a t the end of t h i s r e p o r t .

Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




-EX-Hle,T

A

-

L O N G - T E R M B O N D YIELBS

HIGH-GRADE




\

.

*\l

(

MU . S .

GOVERNMENT

long-lerm

-7-

E x h i b i t B - Tables f o r E x h i b i t A
Long-term Bond Y i e l d s
High-grade

H.IU

Datfe,

U. S. Govt.
long-term 2/

Corporate
Aaa 1/

Spread between
U. S. Govt, and
S t a t e and
Corporate
Aaa
l o c a l Aaa

S t a t e and
l o c a l govt.
Aaa y

(Per cent)

2.15

%

(8/6)
3 . 7 6 (10/18)

1.90 (9/2)

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

it. 37 (12/31)
3.83 ( 1 / 2 )

m

3.06 (3/26)

.16

I960 - High
Low

it. 61 (1/29)
ii. 23 ( 9 / 9 )

ii.ii2 (1/8)
3.75 (8/5)

3.53 (1/7)
2.99 ( 9 / 1 )

.59
.19

.92
.53

Oct.
Nov.
Nov.
Nov.
Nov.

ii. 30
ii.30
11.29
11.30
ii.32

3.90
3.90
3.91
3.92
3.9k

s3.12

.iiO
.iiO
.38
.38
.38

.80
.82

195k
1957
1958
1959

- Low
- High
- Low
-High
Low

28
ii
11
18
25 2 /

2.85 (lt/23)

3.07 (V25)x

i.92

,22

.50

-

3.12

.53

i

Lower-grade
Corporate
Baa 1 /

Date

S t a t e and
local govt.
Baa y

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l RovtV

(Per cent)
19Sh
1957
1958
1959

Low
High
Low
High
Low
1960 - High
Low
Oct.
Nov.
Nov.
Nov.
Nov.

-

28
ii
11
18
25 2/

3.l|ll (12/31)

IS !>%T

2.93 ( 8 / 5 )

5 . 3 6 (2/12)
ii.98 ( 9 / 9 )

fcSifS
3.92 (3/26)
ii.ii6 (1/7)
ii.05 ( 9 / 1 )

5.13
5.10
5.08
5.07
5.08

ii.13
ii.ll
ii.ll
ii.07
ii.07

a

w

1.I?
.77

1::

i56
.8ii
.71

'.98
.79
1.08
.92

.83
.80
.79
.77
.76

.96
.95
.95
.95
.95

f / Meekly
ef dally figure•. Averse tore of bgnds Included 1# 25-26 years.
If Weekly average of dully figures. The serlee Includes beads due or eallable In 10 years or more.
3/ Tbureday figures. Only general obligation bonds are lneludedt average tern Is 20 years.
Vote.—Hlghe and lews are for Individual series and mey be on different dates for different series.




SHORT-

AND

INTERMEDIATE-

TERM

INTEREST

RATES

GOVERNMENT

3 - S

YEAR

ISSUES

YIEtDS/V

F. R.

DISCOUNT RATE
HEW YORK

3 - MONTH I I U S
MARKET YIELDS

STOCK

PRIVATE

EXCHANGE

m -LOANS
Going Rale

PRIME

RATE




FINANCE COMPANY PAPER
Directly Placed

r
j

,

-9Exhibit D - Tables f o r Exhibit C
Short- and Intermediate-term I n t e r e s t Rates
Government
Date

.957 -958 1959 t
1960 j

Low
High
Low
High
Low
High
Low .

3ct. 28
•:0V.

li

i'ov. 11
T
ov. 18
Nov. 25 e /

Discount
rate 1/

1.50

3-month
b i l l s 2/

3.00

.61
3.61i
.58
L57
2.63
L59
2.11

3.00
3.00
3.00
3.00
3.00

2.11
2.20
2.10
2.^6
2.38

Ifs
14.00
2.50

Loo

Yields
6-month
b i l l s 2/
(per cent)

(6/11)
(10A8)
(5/29)
(12/24)
(2/20)
(1/8)
(10/28)

3.02
lt.91
2.92
5.07
2.39

(12/26)
(12/31)
(1/2)
(1/8)
(8/5)

2.53
2.50
2.59
2.75
2.71

3-5 year
issues 2 /
1.66
LOl*
2.1U
5.00
3.70
4.97
3.17

(V30)
(10/18)
(6/6)
(12/2U)
(1/2)
(1/8)
(9/23)

3.57

i-z
3.69
3.72

Spread between y i e l d s on
3-month b i l l s and y i e l d s on
6-mo. b i l l s 13-5 y r . issues '

.66
.86

.01*

.26

.79
.19
.58

1.12

.12
.30
.19
.29
.33

1.2*6
1.39
1.23
1.23

.ItO

1.81
.38

.16

1.01

Private
Date

Stock Exchange
c a l l loan 1 /

Spread between 3-month
Prime
Finance company Treasury b i l l y i e l d and
rate 1/
paper y
finance company
paper rates
(per cent)

1951
19#
1958
1959

-

Low
High
Low
High
Low
I960 - High
Low

3.00
L5o
3.50
5.oo
Loo
5.50
L5o

3.00
1.50
3.50
5.00
Loo
5.oo
L5o

1.25
3.88
1.13
1.88
3.00
5.13
2.88

Oot.
Nov.
Nov.
Nov.
Nov.

28
It
11
18
25 2 /

a. 50
It. 50
It. 50
L50
it. 50

L50
It.50
It. 50
it. 5o
L50

2.98
2.88
2.88
2.93
2.9lt

1/

(12/31)
(11/15)
(8/6)
(12/31)
(3/6)
(1/22)
(11/U)

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

(12/10)
(7/19)
(8/29)
(10/9)
(12/lt)
(3/25)
(it/15)

.87
.68
• 2t8
.lt7
.56

Weekly rate shown I s that In e f f e c t at end of period. Discount rata U for Pederal Reserve Dank of Hew York.
Stook axohans* c e l l loan rate l a going rate.on c a l l loans secured ty eustoaers' stook exchange collateral at
New York City banks. Prime rate I s that charged ty large banks on short-term loans to business borrowers of
the highest credit standing.
2/ Market yield; weekly avern^ee cowptV.ed fro* dally closing b l i prices. Series of 3-6 year issues unnclstit of
eeleoled notes and bowl-i.
If Average of dally rates pul.ll.h.d fcy f l m n u . soapanle* for directly placed paper for varying l a t u r l t l e e In the
VO-179 dhy ruivt*.
,
Note.—Illnhs and Ions are for Individual eerlss.qnd may be on different datee for <ti fferent s e r i e s . For spread#,
nl«« refers to widest, and low ta narrowest'.'




.

STOCK

MARKET

MORTGAGE

AND

BOND

YIELDS




v>

Exhibit F „ Tables f o r ExhibiL E
Stock Market
Date

Stock price
index 1 /

1957-59 - High
Low
i960 - High
Low

60.51
39.78
59.50
53.32

September
October
Nov. 11
Nov. 18
Nov. 25 2/

51.81
53.73
55.87 '
.55.82
56.13

Common
Trading
stock
volume y
yields 2 / (millions
(per cent) of shares)

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

Stock market customer c r e d i t
Customers1
Bank
Total debit b a l - loans to
ances k/ "others" 5 /
(Mil]Lions of do]J a r s )

3.07
4.66
3.18
3.62

4.3
1.4
3.9
2.2

It,76k
3,5Sli
It,365
It,132

3,401
2,482
3,198
3,004

1,373
1,060
1,167
1,111

3.51
3.59
•3.U8
3.48
3.17

2.9
2.6
3.4
2.8
3.2

It,282
lt,29lt
n.a.
n.a.
n.a.

3,137
3,133
n.a.
n.a.
ma.

1,145
1,161
1,152
1,150
n.a.

n.a.—Not a v a i l a b l e .
g / Preliminary.
1 / Standard and Poor's composite Index of 500. common stocks, weekly closing prices, 1941-43*10. Monthly data
are averages of dally figures rattier than of Fridays' only. Highs and lows are for Fridays' data only.
2/ Standard and Poor's composite stock y i e l d based on Wednesday data converted t o weekly closing prices by
Federal Reserve. Yields shown are f o r dates on which price Index reached I t s high or low.
3/ Averages of dally trading volume on the New York Stock Exoluinge.
4 / End of month f i g u r e s f o r 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 s e c u r i t i e s « Prior to July 1, 1959, such loans are excluded only a t banks in New York and Chicago.
Weekly reporting banks account f o r about 70 per cent of loans t o others, For f u r t h e r d e t a i l sea Bulletin.

Mortgage and Bond Yields 1 /
Date

FHA

mortgages 2/ •

1953-1958 - High
Low
1959-1960 - High
Low

5.63
4.56
6.24
5.57

i960 - June
July
August
September
October

6.19
6.17
6.13
6.11
6.09

(11/57)
(2/55)
(1/60)
(3/59)




Spread between new
Aaa corporate
corporate bonds and
bonds 1/
New"3/ Seasoned I4/IFHA mortpanesl Seasoned bonds
4.81
2.74
5.29
4.29
4.69
4.49
4.37
4.45
4.60

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

4.12
2.84
4.61
4.12

1.96

4.45
4.41
4.28
4.25
4.30

1.50
1.68
1.76
1.66
1.49

.83

•90
-.12
.77
.08
.2k
.08
.09
.20
.30

Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

I960
January
February
March
April
May
June
July
August
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year

Corporate 1 /
1
1 1959

New c a p i t a l
1958

I960

577
715
860

821
738
646

7 28
857.,
1,5532/

=1

766
567
1,031;

894
785
887

1,140
597
887

1,030

s

727
962
738

535
740
703

1,107
540
1,114

571
599
&/670

e/1,000
e/825

879
864
900

862
518
920

5®

2,151
2,367
2,427

2,204
2,567

3,139
2,623
2,760
2,300

1,936
2,311
g/1,840

4,519
6,945

4,771
6,750
9,392

i'J8
10,823

4,247
2/6,087

S t a t e and l o c a l 2/
1 1958
1 1959
812

63?
858
646

E

932
593
1,006

798
895
551

§

806
403
651

I

456
474
435

2.1U3

2,276
2,244
1,860
1,365

4,674
6,222
7,793

4,520

tfS
1,571

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

quarter
quarter
quarter
quarter

1,722
2,150
1,977

Year
1/
2/
3/
4/

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

2,899
2,586
2,731
2,213

8,630

10,429

S e c u r i t i e s and Exchange Commission estimates of n e t proceeds.
Investment Bankers Association of America estimates of p r i n c i p a l amounts.
Includes $718.3 million AT&T convertible debenture i s s u e .
T o t a l new c a p i t a l issues excluding o f f e r i n g s of s a l e s and consumer finance
companies.




-13H.ll*

Exi l i b i t

h

Other Security Offerings 1 /
(In millions of d o l l a r s )
Long-tern
Foreign government 2/
Federal agency 3/
I960
1959
1 1958
I960
I
1
1959
JanuaryFebruary
March

2
175
70

81
60
2

196
53

April
May
June

3k
72
ho

58

1*2

139
198
120

JulyAugust
September

25
1
36

85
1
35.

9
5
17

33
30
70

58
123
7h

October
November
December
Year

?°

Shi

182
150
150

—

11*8
35ii

199

%

233
1*60
273

%
297

s21*5

357
351*
261*

July
August
September

280
505
_19?

21*6
1*67
399

289
1*23
369 '

October
November
December

g/lho

235
31*3
358

1

April
May
June

Year.

li,179

3,910

—

. 523
—

—

~"T

•

—

161*

98
150

—
—

66

992

190
128
295

268

175

-

220

707

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

199

1958
1,163
251

•S
1
312
' 1*68
296

—

2,321

Federal agency 3/
359
500
1*89

371
208
11*1*

1*86
675
289

209
161
329

727

%

1*37
206
330

In
288

1,51*
111*
137

6,01*7

3,096

J>/ Preliminary..
1/ Data presented In t h i s exhibit d i f f e r frora these i n Exhibit E i n t h a t refunding i s s u e s , an well as-new
c a p i t a l I s s u e s , a r e included. Long-term s e c u r i t i e s a n defined a s those ntttuHng In more thar. one y e a r .
2( Inoludos s e c u r i t i e s o f f e r e d i n the United S t a t e s by foreign govermonts and t h e i r cj'odlvisions and by
l n ' . e r n n t l o m l org anisations. Source: S e c u r i t i e s ami Exohmnge Commissi ort.
3/ Issues not gunrent*ad by the U. S. Govtrnner.!.. Sourcei long-term, S e c u r i t i e s and Btchtrngt Corcnlniloni
ehort-term, Federal Reserve.
4 / P r i n c i p a l l y tax and bond a n t i c i p a t i o n notus, warrants or c e r t i f i c a t e s ar.d Public Housing Authority
not«*. I n some instances PHA r o t e s Included may teve a somewhat longer tone than one y e a r . Sourcei Bond Buyer.




Exhibit I
Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of d o l l a r s )

Corporate

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

S t a t e and
l o c a l government

liOO
1*21
230
279
262
38U
309
139
Wt2
303
581
266
566

29k
163
217
388
283
225
370
23li
561
191
298
367
1*6

Other 2 /

20
70
100
320
191
71
28
30
75
25
77

Large I n d i v i d u a l I s s u e s Offered November 1 through 25
Issuer

•type 2 /

Coupon
Amount
Offering Rating
(millions Maturity r a t e or
net inter- yield
of
dollars)
e s t cost

CORPORATE
United Gas Corp.
United Gas Corp.
P a c i f i c Gas & Elec. Co.
Commercial Credit Co.
•New Jersey Bell T e l . Co.
Northern Natural Gas Co.
Idaho Power Co. .
John Deere Credit Corp.
Wise. Elec. Power Co.
B. F. Goodrich Co.
Consolidated Edison Co.
of New York
United A i r l i n e s

1st mtg. c o l l .
t r . bds.
S.F. deb.
1st ref.mtg.bds.
Sen. notes
Deb.
S.F. deb.
1 s t mtg. bds.
Deb.
1st mtg. bds.
Deb.

30.0 1980
30.0 1980
60.0 1992
50.0 1980
20.0 2000
20.0 1980
15.0 1990
50.0 1985
30.0 1990
60.0 1985

1 s t r e f . m t g . b d s . 75.0
Conv.sub.deb.
25.0




1990
1985

A
Baa
Aa

5
5-1/8
U—5/8
-U-3/U
li-7/8
U—7/8
lt-7/8
-k-7/8
5
. 4-5/8

lt.88
5.05
L63
It. 83
It. 72
It. 85
It. 78
1.95
It. 85
It. 63

Aaa
A
• Aa

5
li-7/8

It.67
It. 88

Aa
Ba

——

Aa
Aa

1-2

-15"

Large I n d i v i d u a l I s s u e s Offered November 1 through 25 (Cont'd)

Issuer

Type 3 /

Amount
Coupon
(millions
r a t e or O f f e r i n g Rating
Maturity
of
net i n t e r - y i e l d
dollars)
e s t cost

STATE AND LOCAL GOVERNMENT
Rev.-S.T.
Cook County, I l l i n o i s
Trenton, New Jersey
G.O.
State of M i s s i s s i p p i
G.O.
Rev.-Ut.
Port of Los Angeles, Cal.
S t a t e of Massachusetts
G.O.
P h i l a d e l p h i a , Pa.
G.O.
Port of New York Authority Rev.-Ut.

25.0
10.9
12.0
lli.O
3lu8
35.1
25.0

1961-75
1961-85
1961-80
1963-85
1961-2009
1962-91
1989

3.16
3.05
3.3k
3.82
3.15
3.1*7
3.81

1.70-3.35
1,60-3.25
I.6O-3.I4O
2.30-3.90
1.60-3.55
1.85-3.65
3.75

A
Aa
Aa
A
Aa
A
A-

k.hO

Aaa

OTHER
Tennessee Valley Auth.

2/
3/

Bds.

50.0

1985

it. a

and l o c a l government security o f f e r i n g s of $10 m i l l i o n and over.
Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s . =
In t h e case of State and l o c a l government s e c u r i t i e s , G.O. denotes general
o b l i g a t i o n s ; Rev.-Ut., revenue o b l i g a t i o n s secured only by income from public
u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from q u a s i - u t i l i t i e s
Rev.-S.T., revenue bonds secured by revenue from specific^ t a x e s only; Rev.-Rent.,
revenue bonds secured s o l e l y by l e a s e payments.




Exhlbit J

-16-

Forthcoming Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues —
During month following
date shown
Other 2/
i s

Date of
computation
1959 - Oct. 30
Nov. 30
Dec. 31
i960 - Jan. 29
Feb. 29
Mar. 31
Apr. 29
May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31

385
226
210
207
301
299
202
1*83
237
596
216
576
.1*1*0

115
295
1*1*5
210
255
250
2JU3
277
180
275
283
212
258

Subsequent t o
date shown
C.oiporate State and
Other 2/
l o c a l govt.

70
30
1*5
35
30
30
77
50

509
271
280
252
372
3 lib
357
553
1*55
1,006
731
836
585

336
1*85
515
310
385
280
258
502
380
321*
283
336
391

70
30
1*5
35
60
30
127
50

Forthcoming Large O f f e r i n g s , as of November 25
Type

Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )

CORPORATE
B e n e f i c i a l Finance Coip.
Southern Bell Telephone & Telegraph
Northern S t a t e s Power Co.
Potomac E l e c t r i c Power Co,
Consumers Power Co.
Commerce Oil Refining Corp.
Liberian Iron Ore, Ltd.
^Public Service E l e c t r i c & Gas Co.

Deb.
Deb.
1st mtg. b d s .
1st mtg. bds.
1st mtg. bds.
Deb., bds.
Bds. & s t k .
Pfd. s t k .

50.0
75.0
. 35.0
1*0.0
35.0
1*5.0 .
30.0
25.0

Rev.-S.T.
Rev.-Ut.
G.O.
G.O.
Rev.-S.T.
G.O.
Rev.-Ut.

15.0
11*. 5
12.5
10.0
12.5
12.0
97.6
25.0

Nov.
Nov.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

Rev.-Ut.

55.0

December

Nov. 30
Dec. 6
Dec. 7
Dec. 8
Dec. 13
Indefinite
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
Alabama Highway Authority
Florida Development Comm.
-estate' of Texas
San Diego Sch. D i s t . , C a l i f .
Maryland State Roads Comm.
*-Bade County, Florida
(-Public Housing Authorit i e s
S t a t e of Michigan
Oklahoma City Metro. Improvement
Oklahoma
Digitized forAuth.,
FRASER



29
30
5
6
7
11*
11*
11*

J-2

-17-

Forthcoming Large O f f e r i n g s , as of November 25 (Cont'd)
Type

Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )

Rev.-Ut.
G.O.
Rev.
G.O.
Rev.

O OxVx o
ooooo

STATE AND LOCAL GOVERNMENT (Cont'd)
Los Angeles Dept. of Wtr. and Pwr.,
California
Orleans P a r i s h School D i s t . , La.
Kentucky Turnpike Authority
Dade County, Florida
New York State Housing Fin. Agency

Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
Federal National Mortgage Association

Bds.

100.0

Nov. 30

*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and other i s s u e s of £L5 m i l l i o n and over; State and l o c a l
government issues of $10 m i l l i o n and over.
2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
Note.—Deletions f o r reasons other than sale of i s s u e : None.




-I6r-

Exhibit K
Yields on New and Outstanding
E l e c t r i c Power Bonds/ Rated Aa and A 1/
Date

1952-1959 - High
Low
1959 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1960 - Jan.
Feb.
Mar.
Apr.
May 10
12
25
June 17
28
29
July 8
13
Sept. 15
23
28
Oct. 5
21
Nov. 4
16
17
18

Aa-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
(per cent) seasoned y i e l d s ( p e r cent) seasoned y i e l d s
( b a s i s points)
( b a s i s points)
5.30 (12/8/59)
2.93 (3/3I/5I*)

87
-3

*4.93
4.83

31
23

5.132/
*5.08
*5.30

36
42
63

5.09
4.82
4.91
4.88

45
25
37
32

4.82
4.84

25
27

tJk

27
17
2b

5.65 (9/18/59)
3.00 (3/17/51)

123
-15

5.07

17

*5.65
5.33

60
43
51
28

4.97
5.14

9
35

5.10
5.20
4.95

26
33
11

1.93
4.88
b. 80

11
8
2b

4.88

26

5.05

43

22

4. 78
4.85

33
10

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported i n Moody's Bond Survey.
Except where i n d i c a t e d , the a c t u a l y i e l d f i g u r e and t h e amount above seasoned
y i e l d s a r e averages of o f f e r i n g s during the i n d i c a t e d period and of the d i f f e r ences between these new- o f f e r i n g y i e l d s and y i e l d s on seasoned issues of s i m i l a r
q u a l i t y f o r the same day. Average maturity f o r the seasoned i s s u e s v a r i e s from
26 t o 28 y e a r s .
2 / Provides f o r a 5-year period during which Issue may not be c a l l e d f o r refunding
aFRASER
t a lower coupon r a t e . Monthly averages so marked include one or more i s s u e s
Digitized for with
such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .



-19November 28, i960
P a r t I I =• Canada
Canadian i n t e r e s t r a t e s , both s h o r t - t e r m and longer-term, rose
f u r t h e r l a s t week f o r t h e n i n t h consequetive week. The Canadian s h o r t b i l l
r a t e , which has r i s e n by 2.09 per cent since September 22, exceeded t h e
U.S. b i l l y i e l d by I . 3 8 p e r cent l a s t week, the l a r g e s t spread i n about
two y e a r s . The net i n c e n t i v e t o hold t h e Canadian b i l l on a covered b a s i s
widened t o almost 0.90 per cent per annum. The Government announced plans
f o r f i n a n c i n g the $609 m i l l i o n of 3 per cent bonds maturing December i 9 6 0 ,
as w e l l as some advance p a r t i a l f i n a n c i n g of t h e 3 per cent bonds which
w i l l mature one year hence. The Canadian d o l l a r rose s l i g h t l y l a s t week
while the discount on t h e forward d o l l a r widened. There was l i t t l e change
i n i n d u s t r a i l stock p r i c e s on the Canadian exchanges.
Money market. The average y i e l d on the Canadian 3-nonth Treasury
b i l l r o s e from 3.1*8 per cent t h e week b e f o r e t o 3*77 per cent l a s t week.
The y i e l d on t h e 6-months b i l l rose from 3.78 per c e n t t o 3.93 p e r c e n t .
The chartered banks sold $30 m i l l i o n of b i l l s while the general p u b l i c
purchased $29 m i l l i o n and t h e Bank of Canada purchased $1 m i l l i o n . The
average closing r a t e on day-to-day loans was 3.1*8 per cent compared with
3ol9 per cent the week before
There was a f u r t h e r widening of the spread favoring the Canadian
b i l l over t h e U.S. b i l l t o I . 3 8 p e r c e n t , t h e l a r g e s t i n over a y e a r , as
a r e s u l t of t h e sharp r i s e i n the Canadian y i e l d . There was a s l i g h t
i n c r e a s e i n t h e discount on the forward Canadian d o l l a r t o 0.1*9 p e r c e n t
per annum; however, t h e n e t i n c e n t i v e to hold the Canadian b i l l on a
covered b a s i s rose t o 0.89 per cent compared with 0.77 p e r c e n t the week b e f o r e .
Bond market. Bond y i e l d s rose l a s t week f o r a l l m a t u r i t i e s .
The spread between s e l e c t e d comparable Canadian and United S t a t e s s e c u r i t i e s
(Thursday y i e l d f o r b i l l s and Wednesday y i e l d f o r bonds) were as follows
( f i g u r e s i n p a r e n t h e s i s r e f e r to the previous week):
1.38
1.23
0.68
1.30
1.28

per
per
per
per
per

cent
cent
cent
cent
cent

on
on
on
on
on

a 91-day b i l l (1.08)
a 182-day b i l l (1.02)
an 8-year bond (0.72)
a 30-year bond (1.22)
a 35-year bond (1.27)

There was l i t t l e change i n bond holdings during the week. The general
p u b l i c sold $5 m i l l i o n , t h e chartered banks sold $3 m i l l i o n , and the Bank
of Canada sold $3 m i l l i o n while the Government accounts purchased $10
m i l l i o n . The general p u b l i c purchased another $271 m i l l i o n of the new
Savings Bond i s s u e . Total s a l e s of t h e new s e r i e s reached $78$ m i l l i o n by
November 22$ the purchases included $208 m i l l i o n through p a y r o l l d e d u c t i o n s .
On F r i d a y , t h e Finance Minister announced t h a t the m a t u r i t y on
December 1$ of $609 m i l l i o n of 3 per cent bonds would be met with only a
$200 m i l l i o n new bond o f f e r i n g t o t h e p u b l i c . For the remainder, t h e
Minister expects to draw down t h e Government's cash balances by $109 m i l l i o n ,




-20-

r e t i r e $100 m i l l i o n now held by t h e Government's S e c u r i t i e s Investment
Account, and refund $200 m i l l i o n d i r e c t l y with the Bank of Canada. The
d e t a i l s of the $200 m i l l i o n public o f f e r i n g w i l l be announced today.
The Minister a l s o announced t h a t s t e p s would be taken t o reduce
the $1,021 b i l l i o n of 3 per cent bonds maturing on Decmeber 1 , 1961. Some
$200 m i l l i o n of the 1961 bonds held by the Bank of Canada w i l l be replaced
by an equal amount of the new short-term i s s u e announced today. Retirement
of $200 m i l l i o n of the 1961's w i l l reduce t h a t refunding t o more manageable
proportions.
Mr, Fleming a l s o s t a t e d t h a t the Government would probably
r e q u i r e new money e a r l y i n 1961 t o r e b u i l d i t s b a l a n c e s . Several o f f e r i n g s
of moderate s i z e a r e contemplated. He s t a t e d t h a t "more f r e q u e n t i s s u e s
of smaller s i z e appeared to be p r e f e r a b l e t o much l a r g e r i s s u e s more widely
spaced0"
The P a c i f i c Gas Trasnmission Co. placed a $90 m i l l i o n i s s u e
p r i v a t e l y with some 16 U.S. and Canadian f i n a n c i a l i n s t i t u t i o n s . The f i r s t
mortgage bonds have a coupon of 5 - l A per cent and are due January 1, 1986.
A two-part $1*0 m i l l i o n Quebec Hydro S e r i e s AA sinking fund debenture was
issued l a s t week. The i s s u e c o n s i s t s of (1) $11*.5 m i l l i o n f i v e y e a r , 5
per cent, nonredeemable, a t 99-1/1* t o y i e l d 5.17 per c e n t ; (2) $25.5 m i l l i o n ,
23-year, 5-1/2 per cent nonredeentable f o r 21 y e a r s , a t 99 t o y i e l d 5.58 per cen1
Foreign exchange. The Canadian d o l l a r rose during the week and
closed a t 102.38 (U.S. cents) l a s t Friday compared with 102.02 (U.S. cents)
the week b e f o r e . The 3-month forward discount on the Canadian d o l l a r
increased from 0 . 3 1 per cent per annum t o 0,1*9 per cent per annum with the
widening of the spread favoring the Canadian Treasury b i l l .
Stock exchange. There was l i t t l e change i n the p r i c e of i n d u s t r i a l
stock on the Canadian exchanges during the week ending November 21,
New York
Standard & Poor

Toronto

Montreal

I960 - High
Low

532.56
H72o38

271.1
250.3

60.51
55.98

November ll*
15
16
17
18
21

500.38
500.09
U99»59
1*98.1*1*
1*98.19
1*97.23

265.1*
265.1
261* .1*
261*. 8
265.2
265.6

59.06
59.31
59.17
58.99
59.29
59.38

The volume of s a l e s declined t o $7.1*11* m i l l i o n i n t h e week ended November 18,
compared with $8.91*1* m i l l i o n the week b e f o r e .
B r i t i s h Commonwealth Section
Division of I n t e r n a t i o n a l Finance
Board of Governors of the Federal Reserve System




Selected Canadian Money Market and Related Data
3-mo,, Treas. bills
Spread
Canada
J L u . s ^ / over U.S.

Spot

Canadian dollar
3-mo. discount (-}
forward prendum(+)^A

Net incentiVB tO
hold Can.
biUSZ

__

1959 - High
Low
i960 - High
Low

6.16
3.25
5.H*
1.68

U.U9
2.80
U.63
2.10

2.96
0.30
1.38
-0.82,

105.51
102.58
105.27
102.16

—

0.99
-0.72

1.05
-0.57

Oct. 27
Nov. 3
10
17
2l*

3.03
3.22
3.21
3.1*8
3.77

2.10
2.21
2.as
2.1*0,
2.39I/

0.93
.1.01
0.76
1.08
1.38

102.30
102.80
102.53
102.20
102.38

102.33
102.70
102.52
101.9k
102.25

0.12
-4.37
-0.06
-0.31
-0.U9

1.05
0.6U
0,70
0.77
0.89

a/ Average yield at weekly tender on Thursday.
])/ Composite market yield for the U.S. Treasury bill on Thursday close of business,
c/ In U.S. cents.
d/ Spread between spot rate and 3-month forward Canadian dollar on Thursday
closing, expressed as per cent per annum.
e/ Spread over U.S. Treasury bill (column 3), plus 3-month forward discount or
premium (column 6),
f / Due t o Thursday holiday s Friday closing y i e l d s used f o r U.S.
Selected Government of Canada Security Yields
6-mo. Treas. bills
Spread
Canyla
1959 - High
Low
I960 - High
Low

6.2k
5.11
5.33
1.99

@ct. 27
Nov, 3
10
17
21*

3.31*
3.51
3.1*7
3.78
3.93

J

Long-term bonds
(35 year;
(20 year)
Spread
Spread
Canada

Intermediate
bonds (8 yr.)
Spread
over
OaayU
0.8.4/

1.02
"0 086

5.27
l*.5o
5.55
U.09

1.11
0.21

0.8U
1.03
0.83
1.02
1.23

Uo55
1*062
1*.62
1*.6?
U.70

0.76
0.81
0.76
0.72
0,68

\Sk

.

5.30
i*.i*i*
5.1*2
u.63

1.22
0.85

5.0i>
U.73
5.28
U.68

**•*•
1.61
0.95

u.92
1*.89
1*.99
5.09
5.20

loOU
loOlt
l.ll*
1.22
1,30

U.93
U.92
5.01 z
, 5.05
5.09

1.16
1.17
lo2l*
1.27
1.28

Average yield at weekly tender on Ihursday.
Spread between Canadian auction rate and composite market yield of U.S.
on close of business Thursday#
0/ Government of Canada 2-3/U per cent of June 1967-68•
"a/ Spread over U.S. Government 2-1/2 per cent of 1963-68•
e/ Government of Canada 3-1/U per cent of .October; 1979#
7/ Spread over U.S. Government 3-1/U per cent of 1978-83.
.
«/ Government of Canada 3-3/lt per cent of Septentoer 1996 - March 1998.
Jy Spread over U.S. Government of 199$,




Canada: Changes in Distribution of Holdings of Canadian
Government Direct and Guaranteed Securities
(millions of Canadian dollars, par value)
Bank of Canada
Treas.
Bonds
bills
Sept . 21
28
Oct. 6
13
20
27
•Nov. 3
10
17
2k

+
+
+
+

16
27
1
UU
27
k •
11
1
3
1

+
+
+
-

0
2
5
1
k
6
5
1
10
3

Government
Total
+
+
+
+
+
+
+
+

3
1
3
2
23
9
6
2
1
8

Chartered banks
TP68S•
Bonds
bills
+ 52
+ la
+ 2
- 20
- 20
- 16
+ 8
+ 6
- 28
- 30

+
+
+
+
+
+
+
+
+
-

3
16
68
23
23
12
19
7
6
3

General public
Savings Treas.
bonds bills Bonds
- 7
- 5
- 5
* 5
+ 2
+ 3
+ 9
+199
+151
+271

+
+
+
+
+

37
lit
3
19
U
20
6
6
26
29

0
- 5
+165
- 27
- U2
- 2k
- 17
- 7
- 17
- 5

Sources Bank of Canada, Weekly Financial statistics*
Canadian Government Direct Debt Maturing in F i s c a l Year t o March 31, 1961
~~
(millions of Canadian d o l l a r s )
Date of
maturity
Description
Amount
I960
April I * /
June 1£/
October 3®/
November 1
December 15
December 15

June 10®/
June 10£/

Loans of 1958 & 59
Sixth Victory Loan
Loan of 1959
Canada Savings Bonds 1950
Loans of 1957 & 1959
Loans of 1959
Total bonds
3-mo. Treas. b i l l s ^ /
6-mo. Treas. b i l l s B /
1-year Treas. b i l l s
253-day Treas. b i l l s
Total b i l l s
Total b i l l s and bonds

Total d i r e c t debt outstanding, June 1, I960

329.0
U6.6
135.0
11.3
515.0
9U.0
1,130.9
1,375.0
510.0
200.0
UO.O
2,125.0
3,2Ulw9
15»80U

a / Refinanced with 9-year; 5-1/2 per cent bonds and 3-year, 5-1/2 per
cent bonds, priced t o y i e l d 5*82 and 5.59 per cent r e s p e c t i v e l y . See
Capital Market Developments, March 21, i960.
b / Paid off a t maturity. See Capital Market Developments, May 31, i960,
c / Refinanced with $100 million of 1-year b i l l s and $11*0 million of
2-1/2 year, ii-l/2 per cent bonds, priced a t 99.65. See Capital Market
Developments, May 31, i960.
d / Total amount of 3-month and 6-month Treasury b i l l s outstanding was
reduced by $li;5 million from March 1, i960 t o October 30, i960.
e / Refinanced with $121 million of 5-1/2 per cent, 15-year bonds.
Remaining $llt million r e p a i d .