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Not f o r P u b l i c a t i o n
m o m o L L r n ifTER SIX MONTHS
-H.IU-

October 2, 1961.
1 CAPITAL
IN

MAPf^.T

the;

u n i t e d

.OT-WTi":KITg
s t a t e s

( I n c l u d i n g Q u a r t e r l y Review of S t a t e and Local
Government S e c u r i t y Financing and Monthly
Review of C a p i t a l Market Developments)
P u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l was i n r e l a t i v e l y
heavy volume l a s t week, but i s expected t o be l i g h t t h i s week. L a s t week,
ending September 29, tv:o l a r g e c o r p o r a t e s e c u r i t y i s s u e s a g g r e g a t i n g #103
m i l l i o n were s o l d ( i n c l u d i n g e x p i r a t i o n of s u b s c r i p t i o n r i g h t s ) and f o u r
S t a t e and l o c a l government bond i s s u e s t o t a l i n g $156 m i l l i o n were o f f e r e d .
This week, ending October 6 , two c o r p o r a t e i s s u e s f o r $1+5 m i l l i o n are
scheduled and one S t a t e and l o c a l i s s u e with a p a r v a l u e of #L0 m i l l i o n
i s on t h e c a l e n d a r w h i l e t h e Japan Development Bank i s o f f e r i n g $20 m i l l i o n
i n bonds.
Bond y i e l d s . Y i e l d s on A a a - r a t e d S t a t e and l o c a l government
bonds d e c l i n e d 3 b a s i s p o i n t s while t h o s e on B a a - r a t e d bonds d e c l i n e d 2
b a s i s p o i n t s . Y i e l d s on l o n g - t e r m Government bonds which had r i s e n s h a r p l y
t h r e e weeks ago on t h e announcement of t h e T r e a s u r y ' s advance r e f u n d i n g
o p e r a t i o n d e c l i n e d f o r t h e second s t r a i g h t week f o l l o w i n g i t s ' s u c c e s s .
Y i e l d s on c o r p o r a t e bonds were unchanged.
S h o r t - and i n t e r m e d i a t e - t e i m i n t e r e s t r a t e s . Y i e l d s on both
3-month T r e a s u r y b i l l s and 3 - 5 y e a r U. S. Government o b l i g a t i o n s c o n t i n u e d
t h e i r d e c l i n e of the p a s t s e v e r a l weeks, d e c r e a s i n g one and 6 b a s i s p o i n t s ,
r e s p e c t i v e l y . The a v e r a g e r a t e of i n t e r e s t on F e d e r a l f u n d s d e c l i n e d 20
b a s i s p o i n t s t o 1 . 9 5 p e r c e n t . Y i e l d s on 6-month Treasury b i l l s and
o t h e r s h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s were unchanged.
FNMA secondary market o p e r a t i o n s . Secondary market mortgage
p u r c h a s e s by t h e F e d e r a l n a t i o n a l Mortgage A s s o c i a t i o n more t h a n doubled
i n August a f t e r l i t t l e change i n J u l y , but a t $57.2 m i l l i o n , continued
below t h e y e a r - e a r l i e r l e v e l . O f f e r i n g s of mortgages r o s e f o r t h e f o u r t h
c o n s e c u t i v e month, w h i l e s a l e s dwindled f u r t h e r .
October s e c u r i t y volume. S e c u r i t y i s s u e s by c o r p o r a t i o n s a r e
expected t o be in f a i r l y s u b s t a n t i a l volume i n October while S t a t e and
l o c a l government f i n a n c i n g i s expected t o be moderate.
Corporate f i n a n c i n g d u r i n g October i s e s t i m a t e d a t $0.8 b i l l i o n ,
o n e - f o u r t h more than t h e r e v i s e d e s t i m a t e f o r September but a b o u t o n e - t m t h
l e s s than i n October of t h e two preceding y e a r s . Large i s s u e s c u r r e n t l y
scheduled f o r p u b l i c o f f e r i n g d u r i n g t h e month amount t o $358 m i l l i o n .
S t a t e and l o c a l government bond s a l e s in October a r e expected t o
be about #600 m i l l i o n , o n e - f i f t h l e s s t h a n i n September but almost t h r e e f o u r t h s more t h a n t h e u n u s u a l l y low volume of l a s t October. Large i s s u e s a r e
expected to amount t o #25l m i l l i o n .




C a p i t a l markets i n September. The volume of new s e c u r i t y f i n a n c ing i n September was moderate, although l a r g e r than i n August, and i n t e r e s t
r a t e s t e n d e d t o d e c l i n e . The s h a r p , temporary i n c r e a s e i n long-term U. S.
Government bond y i e l d s a s s o c i a t e d with t h e announcement, and subsequent
s u c c e s s , of t h e T r e a s u r y ' s advance r e f u n d i n g o f f e r was n o t r e f l e c t e d in
e i t h e r c o r p o r a t e o r municipal bond y i e l d s .
Corporate s e c u r i t y s a l e s i n September t o t a l e d »650 m i l l i o n , only
§50 m i l l i o n more t h a n t h e very l i g h t August t o t a l . For t h e second consecut i v e month l a r g e p u b l i c f i n a n c i n g t o t a l e d l e s s t h a n #200 m i l l i o n and t h e r e
were o n l y two i s s u e s of s t r a i g h t bonds ( t h a t i s , bonds not c o n v e r t i b l e
i n t o stock or i n some o t h e r way p a r t i c i p a t i n g i n c o r p o r a t e e q u i t y ) . R e f l e c t ing t h e very l i g h t volume of p u b l i c o f f e r i n g s , y i e l d s on new bond i s s u e s
( a d j u s t e d t o a Aaa b a s i s ) averaged only it.36 p e r cent i n September, about
20 b a s i s p o i n t s l e s s t h a n i n August and t h e lowest s i n c e l a s t March, f i e l d s
on o u t s t a n d i n g c o r p o r a t e bonds changed l i t t l e , however, d e c l i n i n g one b a s i s
p o i n t over t h e month t o luUt p e r cent ( d a i l y b a s i s ) f o r A a a - r a t e d i s s u e s .
Bond s a l e s by S t a t e and l o c a l governments t o t a l e d *750 m i l l i o n i n
September, s u b s t a n t i a l l y more t h a n t h e l i g h t volume of J u l y and August but
only moderately above t h e monthly average f o r t h e y e a r t o d a t e . Included
i n t h i s t o t a l were two $100 m i l l i o n o f f e r i n g s . One, a S t a t e of C a l i f o r n i a
i s s u e , was s u c c e s s f u l l y d i s t r i b u t e d about midmonth; b u t t h e second, I l l i n o i s
S t a t e bonds, o f f e r e d l a t e i n t h e month by u n d e r w r i t e r s a t y i e l d s c o n s i d e r a b l y
below t h o s e p r e v a i l i n g e a r l i e r , was l e s s s u c c e s s f u l , and d e a l e r s ' a d v e r t i s e d
i n v e n t o r i e s of s e c u r i t i e s , which had d e c l i n e d somewhat rose t o over &1+00
m i l l i o n . Yields on A a a - r a t e d municipal bonds, r e f l e c t i n g p r i m a r i l y t h e
p r i c i n g r a t h e r t h a n trie market r e c e p t i o n of t h e I l l i n o i s i s s u e , d e c l i n e d
3 b a s i s p o i n t s d u r i n g t h e month t o 3 . 3 1 p e r c e n t .
Common stock p r i c e s , a f t e r r i s i n g t o a new peak of 68.1*6 ( a s
measured by Standard and P o o r ' s 500 s t o c k index) i n e a r l y September,
d e c l i n e d . P r i c e s closed on t h e 30th a t 66.73, 3 p e r cent below t h e peak.
Trading volume continued t o be moderate, averaging 3 . 2 m i l l i o n s h a r e s a day.
Stock 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 composite index of 500 s t o c k s , changed l i t t l e on b a l a n c e l a s t week,
c l o s i n g a t 66.73 on September 29. The average d a i l y volume o f t r a d i n g a t
3 . 3 m i l l i o n s h a r e s was 0 . 1 m i l l i o n s h a r e s above t h e p r e v i o u s week.
S t a t e and Local Government Long-term
Bond Sales in t h e Second Quarter of I 9 6 I
Sales of l o n g - t e r m bonds by S t a t e and l o c a l governments during
t h e second q u a r t e r of I 9 6 I , d e t a i l f o r which has j u s t become a v a i l a b l e ,
t o t a l e d ij2.ll b i l l i o n , s l i g h t l y more t h a n a y e a r e a r l i e r , but somewhat l e s s
than in 1959. Second q u a r t e r s a l e s were up s l i g h t l y more than o n e - t e n t h
from t h e f i r s t q u a r t e r , but t h i s r i s e was of a s e a s o n a l n a t u r e . I n t e r e s t
r a t e s on m u n i c i p a l bonds r o s e moderately during t h e q u a r t e r , p a r t i c u l a r l y
in June when over t w o - f i f t h s of t h e borrowing was c o n c e n t r a t e d .




Long-term Security I s s u e s of State and Local Governments
Second Quarter 1956-61
(In m i l l i o n s of d o l l a r s )
1961
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 /

1960^

1959Z/

1958V

1957V

1956

U83
179
757
382
#5

355
113
723
1*32
642

518
121
566
395
905

689
165
624
369
405

4io
109
593
361
236

164
53
452
287
496
165

Total

2,367

2,265

2,505

2,252

1,710

1,617

Purpose of i s s u e :
New c a p i t a l t o t a l

2,358

.2*256

2,188

2^223

L697

i±603

694
356
71
36
376
120
170
536

75L
211
166
21
315
73
51
637

689
327
107
47
381
460
133
3ia

587
313
41
27
250
81
136
262

—

—

—

394
159
114
15
213
245
68
230
165

.9

16

30

12

14
1,617

Schools 2 /
Highways, bridges and tunnels
Residential 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 w a t e r
Misc. p u b l i c 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/

—

707
417
• 130
65
264
68
"103
469 .

Refunding

8

Total

2,367

2,2#

2,505

2,252

1,710

1,563
720
2#0
367
10
93
51
33

1,301
777
H20
256
16
86
153
35

1,410
949
W>
47
70
36
105
4L

z 1,664
467

979
533

52
143
22
71
50

1,173
470
323
17
92
39
36
31

2,367

2,265

2,505

2,252

1,710

1,617

Type of i s s u e :
General o b l i g a t i o n
Revenue
Utility
Quasi-utility
Special t a x
Rental
Public Housing Authority
Federal Government loans
Total

•

%0

92
13

n.a.—Not a v a i l a b l e ~ v j Revised.
1 / Issues 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 1956.
2/ Data f o r 1956 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 .
iNote.—Details may n o t add to t o t a l s because of rounding.
Source.—1956, Bond Buyer and Federal Reserve; 1957-61, Investment ^ankers Association of
America.




-It-

Purpose of i s s u e . ^ e a r l y a l l second q u a r t e r bond s a l e s were
to obtain new c a p i t a l ; s a l e of refunding i s s u e s , as in o t h e r recent y e a r s ,
was n e g l i g i b l e .
Financing of school c o n s t r u c t i o n was t h e most important s i n g l e
purpose of bond s a l e s in the second q u a r t e r , a s i t has been i n o t h e r recent
years; t o t a l i n g to.7 b i l l i o n , however, school bond s a l e s were 8 per cent
below a y e a r ago and almost o n e - s i x t h l e s s than the record volume s e t in
the f i r s t q u a r t e r of t h i s y e a r . Sales of sewer and water bonds were i n
close to record volume, aggregating 30.U b i l l i o n , one-tenth more than
l a s t y e a r . Bond s a l e s t o f i n a n c e highways, bridges and t u n n e l s a t &0.U
b i l l i o n were b e t t e r than t h r e e - f o u r t h s l a r g e r than the low April-June
volume l a s t year but l e s s than i n some other q u a r t e r s .
Sales of r e s i d e n t i a l housing bonds were in considerably smaller
volume than a year e a r l i e r , while bonds i s s u e d t o f i n a n c e miscellaneous
public service e n t e r p r i s e s and v e t e r a n s ' aid programs were in l a r g e r
volume than i n t h e second q u a r t e r l a s t . y e a r . Sales of bonds f o r
miscellaneous purposes, a t $0.5 b i l l i o n , were about one-sixth smaller
than the record volume of the second q u a r t e r of l a s t year when s a l e s of
bonds f o r p o r t s and a i r p o r t construction (included i n t h i s category) were
important, but were considerably l a r g e r than i n t h e second q u a r t e r of o t h e r
recent years.
I s s u i n g a u t h o r i t y . M u n i c i p a l i t i e s sold t h e l a r g e s t volume of
bonds in t h e second q u a r t e r of the y e a r as they usually do, s e t t i n g a new
record of $0.8 b i l l i o n . State governments sold 50.5 b i l l i o n of bonds,
o n e - t h i r d above l a s t year but l e s s than in the second q u a r t e r of both
1958 and 1959• Special a u t h o r i t i e s - - i . e . , s p e c i a l d i s t r i c t s and s t a t u t o r y
a u t h o r i t i e s - - s o l d almost 4?0.6 b i l l i o n i n bonds, about one-eighth l e s s than
l a s t year and' one-fourth l e s s than the record second q u a r t e r volume of 1959.
Type of i s s u e . Sales of general o b l i g a t i o n bonds t o t a l e d frl.6
b i l l i o n , o n e - f i f t h more than i n t h e second q u a r t e r of 1$60. This more than
o f f s e t the smaller volume of both revenue and Public housing Authority
bond f i n a n c i n g , which aggregated #0.7 b i l l i o n and $50 m i l l i o n , r e s p e c t i v e l y .
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented in the attached e x h i b i t s .

C a p i t a l Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the f e d e r a l Reserve System.




<0
EXHIBIT A
LONG-TERM

BOND

YIELDS




-7Exhibit B - Tables f o r Exhibit A
Long-tern Bond Yields
High-grade
Date

195U - Low
1 9 # - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low

U, S. Govt,
long-term 2 /

Corporate
Aaa 1 /

2 . 8 5 (4/23)

(per cent)

• Sept.
Sept .
Sept.
Sept.
kSept.

1
8
15
22
29 £ /

2.U5 (8/6)

it.lit (9/27)
3.55 (5/2)

3 . 7 6 (10/18)
3 . 0 7 (4/25)

it. 6 1 (1/29/60)
it. 23 (9/9)

it.it6 (9/15)
it. 21 ( 3 / 1 7 )

U.it2 (1/8/60)
3.75(8/5)

it.06 (9/15)
3.70 (5/12)
it.01
it.02
U.06
it.02
3.9b

It.Wt
it.it6
it. 16
it.it5
it.it5

State and
local
government
Aaa
3/

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

I

.30

1.90
3.U5
2.6i*
3.65
2.99
3.37
3.12

.60

.22
.59

.92

.W
.W
.143
.itit

3.3it
3.3U
3.3it
3.3it
3.31

.16

.67
,b8
.72
.68
.67

.ho

.it3
.U7

Lower-grade

Date

Corporate
Baa 1 /

State and
l o c a l govt.
Baa y

Spread between
Aaa and Baa
State and
Corporate
l o c a l kovW

(per cent)
195b - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low
Sept .
Sept.
Sept.
S?pt.
yfept.

1
8
15
22
29 2 /

3 . W t (12/31)
5 . 1 0 (11/29)

2.93 (8/5)
it. 5 1 (8/29)

It.5L (IAD
5 . 3 6 (2/12/60)
it. 98 (9/9)

i t . ^ 6 (1/7/60)
3 . 9 8 (12/29)

3.6il (5/1)

5.12 (9/22)
5.00 ( V 2 1 )

lt.16 (3/23)
3.93 ( 8 / 3 )

5.12
5.12
5.12
5.12
5.12

3.98
it. 02
It.02
it. 02
it. 00

•

.68
.66
.66
.67
.67

p/ Preliainary,
1/ Weekly average of dally f i g u r e s . Average term of boade Included i s 23 -26 year#.
2/ Meekly average of dally figure*. The series lnoludes bonds due or callable In 10 years or «ors.
3/ Thursday figures. Only general obligation bonds are Included; average term 1# 20 years.
Note.—Illgh« and lows are for lntftvjdual series and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s ,
for spreads, high r e f e r s t o widest, and low to narrowest.




.96
1.21
.93
1.08
.*6
.93
.57

.52
1.27
.77
.81t
.71
.81
.66
,

.6h

.68
.68
.68
.6*

%
EXHIBIT C

SHORT- AND

I N T E R M E D I A T E - TERM INTEREST RATES
Per cent pel onnum_

GOVERNMENT

-

fU

AT

\^N-

1 1

f.

z'

R. DISCOUNT

RATE

M

V3

- MONTH

1

M a r k e t Yi •
, , i

BANKS

AND

OTHER

PRIVATE




BORROWERS

ISSUE!

w

\
\ LV/

3 - 5 YEAR

-9-

Exhibit D - Tables for Exhibit G
3 i o r t - and Intermediate-term Interest hates
Government
Discount
rate

3-month
b i l l s 2/

1/

: 1951* - Low
I 1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low
Sept.
: Sept.
, Sept.
! Sept.
/Sept.

1.50
3.50
1.75
Loo
3.00
3.00
3.00

U. 59
2.11
2.56
2.17

(1/8/60)
(10/28)
(3/3)^
(1/27)

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 . issuca

3-5 year
issues 2/

.61 (e/n)
3.61* (10/18)
.58 ( 5/29) -

3.00
3.00
3.00
3.00
3.00

1
8
15
22
29 e /

Yields
6-month
b i l l s 2/

3 . 02 (12/26)
5.07 (1/8/60)
2.38

,26
,79
,16
Uli
12

5 . 0 0 (12/24/69)
3 . 1 0 (12/30)

(12/30)

2.78 (8/18)
2.35 ( V 2 8 )

3.86 (8/11)

2.65
2.67
2.68
2.69
2.69

2.34
2.32
2.29
2.26
,
2.25^

3.77

31
35

3.80
3.76
3.70

>39

3.15 (5/12)

3.81

Date

Prime
rate 1 /

1.13
1.1*9
1.51
1.50
1.1*5

,13
,1*1*

Banks anfl.Ofrh'err Private Borrowers
Stock Exchange
c a l l loan 1 /

. 66
.86
.oU
1.81
.38
1.51
.92

1 . 6 6 (4/30)

lt.Ol* (10/18)
2.11* (6/6)

Spread between
3-roo. b i l l s and
finance co. paper

Federal
funds U/

Finance company
paper 3 /

(per cent)

3.00

1951 - Low
1957 - High
1958 - Low
1959-60 - High,
1960 - Low
1961 - High
Low
Sept.
Sept.
[Sept.
Sept.
Sept.

li.5o
l*.5o
l*.5o
U.50
l*.5o

3.00
U.50
3.50
5.00

il,50
3.50
5.50
it. 50
ii.50
it. 50

1
8
15
22
29 e /

i*.00 (5/13/60)

2 . 8 8 (12/30)

i*.5o
14.50

.

2.88 (3/10)
2.50 (7/28)

.95 (12/2)
2.85 (2/17)
.1*3 (1/27)

4.50
it. 50
l*.5o
1*. 50
ii.50

2.69
2.69
2.69
2.69
2.69

1.65
1.31
2.30
2.15
1.95

»

d.,1, iff.otlw « t . , .M.h i .

•

f . r th.

spreads, high r e f e r s to wideat, and low to narrowest.




0
.63
-.35
1.02
.22
.56
.11

3.50 (11/8)
.13 (V2»)

14.50

y

4/

1.25 (12/31)
3.88 (11/15)
1:13 (8/8)
5'. 13 (1/22/60)

«

»

r

.35
.37

.ho

.11
.1*1*

,

s

i

.T

"

u

"

°

.M . a .

r

STOCK

MARKET

FEDERAL N A T I O N A L
SECONDARY

MORTGAGE ASSOCIATION

MARKET O P E R A T I O N S

Monthly




• E x h i b i t F - Tables f o r E x h i b i t E

-11-

Stock Market
Stock p r i c e
index 1 /

Date

Common
Trading
volume y
stock
yields 2/ (millions
( p e r cent) of shares)

Stock market customer c r e d i t
Bank
Customers'
loans to
debit bal"others" 5/
ances 4 /
( I n m i l l i o n s of d o l l a r s )

Total

1957-60 - High
Low
1961 - high
Low

39.48 (12/20/57)
68.29 (8/18)
58.48 ( 1 / 6 )

3.08
4.72
2.89
3.32

4.9
1.4
5.8
2.7

4,764 (4/59)
3,554 (l/ss)
5,386(5/61)
4,424(1/61)

July
August
Sept. 15
Sept. 22
Sept. 29 2 /

65.38
67.86
67.65
66.72
66.73

2.98
2.90
2.92
2.96
2.95

3.0
3.5
3.0
3.2
3.3

5,355
5,349
n.a.
n.a.
n.a.

6 0 . 5 1 (7/31/59)

3 , 4 0 1 (4/59)

1 , 3 7 3 (5/59)^

2,482 (12/57) 1 , 0 6 0 (11/57)
4,060(5/61) 1 , 3 7 8 ( 9 / 2 0 )
3,253(1/61) 1 , 1 6 1 ( 3 / 8 )
3,991
3,972

1,364
1,377
1,373
1,378
n.a.

n.a.

n.a.—Not a v a i l a b l e .
g / Pmlin-lrary.
1/ Standard and Poor's composite Index of 5U0 cczmon stocks, weekly o l o o l i ^ p r l o e s , 1941-43"10. Monthly data are
avwrages of d a i l y figureo rathor than of Fridey's only. High:* and lors are for Fridays 1 data only,
2/ Standard and Poor'o ocmpotlto etook y i e l d baoed on Wednesday data converted t o weekly closing prleee by Federal
Recerve. Yiolda shown are for dateo on which prioe Index reached I t s high or low.
3/ Averages of dally t r a d i n g volv.-.ie on the Hew York Stock Bechange.
4 / End of month figured f o r member firma of the M w York Stock Exchange which carry margin accounts; excludeu balancea
o
secured by U. S. Government o b l i g a t l o n s .
5 / Wednesday figure o f o r weekly reporting member banks. Bcoludes loans for purchasing or c a i t j l r g U. S. Government
r o c u r i t l e e . Prior t o July 1, 1969, much IOMIH are excluded only a t banlca i n Now York and Chicago. Weekly reporting
banks account f o r about 70 per oont of loans t o othero. For f u r t h e r d e t a i l nee Bulletin.

Federal N a t i o n a l Mortgage A s s o c i a t i o n Secondary Market Operations 1 /
Date

1960 - Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.

Purchases
Estimated Offerings to F M
N A
by
Immediate
Standby
Total
m-\k
purehase commitment
( I n m i l l i o n s of d o l l a r s )
104.0
73.1
83.2
61.7
53.3
50.1
36.3
33.7
26.4
35.0
47.9
75.7

111.2

89.1
69.8
68.6
$6.9
51.4
2*8.1
33.7 ,
#.8
2U.0
32.2
46.9
73.9
108.0

lit.8
3.3

1U.6
4.8
1.9

2.1

2.6
3.9
2.4
2.8
1.0
1.7
3.2

75.6
63.0
58.8
51.2
45.5
41.2
33.7
31.6
21.8
21.3
25.4
24.4
52.7

Sales
by
IN M
A
.1
.8
1.1

8.9
23.3
26.2
70.7
115.4
165.6
101.4
17.2
5.6
2.4

WSEtEHBt

must usually deliver within one ynar. Purokaoee include thoue under both Immediate purchases and
ntandby commitment oontraots. Data exclude F M a c t i v i t y under Special Assistance and Management
NA

and
 Llouldntlnn Programs.


Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In m i l l i o n s of d o l l a r s )
New caip i t a l
1961

Corporate 1 /
1 I960
I

1959

1961

State and l o c a l 2/
! 1959
I I960
700
611
568

.

648 .
8»
638

580
667
562

570
715
860

8a
738
6#

716
683
760

April
May
June

2,118
1,259
1,318

761

•891*
785
887

72U
628
1,015

719
545
991 .

i s
987

July
.August
September

957
e/600
e/Y O

* 736 .
967
726

535
740
703

e/450
e/600
e/750

492
606
683

W.3
521
1(70

October
November
December

e/GhO

890
' 956
852

879.
86U900 '

n/633

348
5D1
491

593
ii50
U79

1st,
2nd
3rd
4th

1,809
4,#5
,
2,r
e/

2,145 '
2,382
2,128
2,698

2,2014
2,567
1,979
2,61*2

2,159
2,367 ,
1,800 e /

1,880
2,256
1*780
1,340

2,11)5
2,1,88
I,li33
1,521 .

6,504
8.,?:' £ /

14,527
6,955
9,653

1,771
6,750
9,392

4,526
6,326 e /

4,136
5,916
7,257

II,631I
6,067
7,508

January
February
March

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year

\

- J S

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

quarter
quarter
quarter
quarter

i i f
2,1: ; e /

I ear

I

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

1,716
2,165
2,018
2,31*7
8,216

.

8,630

hSLimatea.
q/
»
S e c u r i t i e s and i&xchanga Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new c a p i t a l i s s u e s excluding o f f e r i n g s of s a l e s and consumer Una nee
companies.




Exhibit H
-13-

Other Security Offerings
(In millions of dollars)

Gross long-term 1 /
Foreign government 2/
Federal agency 3/
1961
|
I960
|
m<F
1961
I960

1959

January
February
March

6

29
20

2
175
70

81
60
2

252

April
May
June

2
63
2k

34
72
1*0

58
50
1*2

100
11*9
278

July
August
September

25
1
36

85
1
35

199

October
November
December

31*
2
ia

33
30
70

160
11*9
181

86

533

547

1,672

707

Year

182
150
150

199
175

11*8
351*

150

Net short-term i*/
State and local government 5/
Federal agency 3 / *
January
February
March
April
May
June
July
August
September

160
195
-8
-103
-df
109

October
November
December
Year
2/
1/

58
11*0

-80

-1*

181
1
*

-196
-202
-59
-277
170'
320

. 50
368
286

95
23

362
133
79

70
-11*6
-157

197
-25
-197

-79
-87
207

1*15
-175

1*8

57
392
131

58

-16
50
-189

-176
-117

18

-81

362-

-82
176
33

-ll*l*
-162
-171*

-201

-23
-33
-250

280
2ii0

-633

1,969

1*1*

Preliminary,
These data d i f f e r f r e e those I n Bchlblt 0 i n that refunding I s s u e s , a s well a s 1 r c a p i t a l Issues, are Included.
Long-term s e o i r l t l e e are defined a s those maturing In more than one y e a r .
2 / Includes s e c u r i t i e s o f f e r e d In the United S t a t e s by foreign governments and t h s l r subdivisions and by i n t e r national organizations. Sources S e c u r i t i e s and Exchange Commission.
3/ I s s u e s not guaranteed by the U. S, 0 o v e r w e n t . Sources long-term, S e c u r i t i e s and Exchange Commissiont shortterm , Treasury Department and federal Reserve.
4 / These data d i f f e r from those i n Exhibit 0 and above i n t h a t they represent now o f f e r i n g s l e t s retirements, whether
from the proceeds of refunding Issues or from other funds, Data include only Issues with original maturity ef one
year or l e s s ,
5 / 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 notes, warrants or c e r t i f i c a t e s and Public Housing Authority n o t e s . I n
coat instances PHA notes Included may have a somewhat longer term than one y e a r . Sources Bond Buyer and
Federal Reserve.




-lb-

Exhibit I
Large Long-term Public S e c u r i t y I s s u e s f o r New C a p i t a l
( O t h e r than U. S. Treasury) 1 /
Proceeds of ^ a r g e I s s u e s O f f e r e d
( I n m i l l i o n s of d o l l a r s )
Month

S t a t e and
local
government

Corporate

I960 - September
October
November
December
1961 - January
February
March
Aoril
May
July
August
September

|

266
566
16$
260
11*7
26?
70
1,572
557
532
1*75
185
168

367
1*6
186
222
391
360'
W5
383
256
616
179
281
1*35

Other 2 /
25
77
150
99
67
25
151
100
73

Large I n d i v i d u a l I s s u e s O f f e r e d during September

Issuer

Type 3 /

Amount
Coupon
r a t e or O f f e r i n g
(millions
Maturity
of
net i n t e r - yield
dollars)
est. cost

Rating

CORPORATE
Deb.
Mountain Fuel Supply Co.
18.0 1986
Armour & Co.
Conv.sub.deb.
32.6 I983
F i r s t Mortgage i n v e s t o r s
B e n e f . i n t e r e s t s 15.0
Western Union Telegraph Co. Com. s t k .
142.61
P a c i f i c Gas & E l e c . Co.
1 s t & r e f . m t g . b d s . 6 0 . 0 ' 1993

l*-7/8
h-1/2

1*.80
l*.5o

A
Ba

1*.50

li.50

Aa

STATE AND LOCAL GOVERNMENT
Cheyenne, Wyoming
Commonwealth of Mass.
S t a t e of C a l i f o r n i a
Okla Bldg. Bond Comm.
Penna. S t . Sch.Bldg.Auth.
New York C i t y , New York
Los Angeles, Dept. of Wtr.
and Pwr., C a l i f .
D e t r o i t , Michigan
D e t r o i t City Sch. D i s t . ,
Michigan

Rev.-Ut;
G.O. "
G.O.
G.O.
Rev.-Rent.
G.O.
Rev.-Ut.
G.O.




G.O.

10.C1 1963-91
'1*6.8 1962-2009
... 100.0 1963-87
35.5 I96I1-86
25.9 1962-2000
1*2.9 1962-76

Aa
Aa
Aa
Aa

3.57
3.29
3.76
3.18
3.69
2.72

2.00-3.65
1.60-3.90
2.00-3.85
2.00-3.35
1.70-1*. 60
1.70-3.50

A

: 18.0
11*.5

1962-91
1962-86

3.50
3.1*6

1.60-3.70
1.75-1*.50

Aa
A

10.0

1963-88

3.66

2.00-1*. 1*0

A

-

1-2

-W-

Large I n d i v i d u a l I s s u e s O f f e r e d d u r i n g September ( C o n t ' d )

T

ype 3 /

Coupon
Amount
Offering
r a t e or
(millions
Maturity n e t i n t e r - y i e l d
of
dollars)
e s t cost

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
Georgia S t . S c h . B l d g . A u t h .
S t a t e of I l l i n o i s

Rev.-Rent.
G.O.

31.5
100.0

1963-83
1962-86

3.57
2.97

2.00-3.75
1.U0-3.20

Deb.

73.3

1966

h-l/k

1.25

A
Aaa

OTHER
F e d e r a l Land Banks
1/
2/
3/

I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and over; S t a t e
and l o c a l government s e c u r i t y o f f e r i n g s of 510 m i l l i o n and o v e r .
I n c l u d e s 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 n o n - g u a r a n t e e d i s s u e s by F e d e ra l a g e n c i e s .
In the c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. d e n o t e s g e n e r a l
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s s e c u r e d only by income from
p u b l i c u t i l i t i e s ; R e v . - Q . u t . , revenue bonds s e c u r e d o n l y by revenue from
q u a s i - u t i l i t i e s ; R e v . - S . T , , revenue bonds s e c u r e d by revenue from s p e c i f i c
t a x e s o n l y ; Rev. - R e n t . , revenue bonds secured s o l e l y by l e a s e payments.




Exhibit J

-16-

forthcoming Large Long-term Public S e c u r i t y O f f e r i n g s f o r New C a p i t a l
( O t h e r than U. S. Treasury) 1 /
Expected Proceeds from forthcoming Large I s s u e s

computation
I960 - Sept. 30
Oct. 31
Nov. 30
. 'Dec. 30
1961 - Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31
June 30
July 31
Aug. 31
Sept. 29

\

Dazing month f o l l o w i n g
d a t e shown
S t a t e and
Other 2 /
Corporate
l o c a l govt.
576
Uho
260
91
110
55
1,580
5k2
U87
521
170
175
358

212
258
21*2
hl2
:.8l
3Q7
559
236
hll
195
106
399
251

Subsequent t o
date shown
S t a t e and
Other 2
Corporate
l o c a l povt.

77
50

15
75
73
35

336
391
560
682
360
638
806
579
771
291
537
530
\Sk

836
585
335
1,036
1,01*6
1,125
1,700
687
611
666
255
2li0
Soh

127
50

15
75
73
35

Forthcoming Large O f f e r i n g s , a s of September 29
Type

Amount
Approximate d a t e
(millions
of o f f e r i n g
of dollars)

CORPORATE
P u b l i c Service Co. of Colorado
Gulf S t a t e s U t i l i t i e s Co.
A l l i e d S t o r e s Corp.

1 s t mtg. b d s .
Deb.
Conv. sub. deb.

30.0
15.0

Keystone S t e e l & Wire Co.
General American Transp. Corp.
Public S e r v i c e E l e c t r i c & Gas Co.
Northern Indiana Public S e r v i c e Co.

Conv sub. deb.
uquip. t r . c t f .
Deb.
Conv. deb.

20.0
2^.0

27.0

5o.o
20.3

1st mtg.bds.&pfd.stk.
Georgia Power Co.
Com. s t k .
^ P a c i f i c Northwest B e l l Telephone Co.

17.0
28.0

Mtg. bds. & com. s t k .
Niagara Mohawk Power Co.
Conv. sub. deb.
FMC Corp.
Sen. deb.
f a m i l y Finance Corp.
1 s t mtg.bds.&com.stk.
Idaho Power Co.
Deb.
-"-Pacific Northwest B e l l Telephone Co.
1 s t mtg. bds.
Rochester Gas & E l e c t r i c Co.
Deb., b d s . & com.
Commerce O i l R e f i n i n g Corp.
Coll. t r . notes
R e a l t y C o l l a t e r a l Corp.

70.3
30.0
25.0
16.8




50.0

15.0
45.0
20.0

Oct. 3
Oct. I)
Oct. 9
( r i g h t s expire)
Oct. 11
Oct. 11
Oct. 18
Oct. 18
( r i g h t s expire)
Oct. 19
Oct. 20
( r i g h t s expire)
Oct. 25
Oct.
Oct.
Nov. 2
Nov. 16
Indefinite
Indefinite
Indefinite

-17Forthcoming Large O f f e r i n g s , as of September 29 (Cont'd)
Issuer

Type

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

STATE AND LOCAL GOVERNMENT
New Haven, Conn.
Los Angeles Sch. D i s t . , C a l i f .
e s t a t e of New iork
-x-State of C a l i f o r n i a
P i t t s b u r g h & Allegheny Co. Public
Aud. Auth.
S t a t e of Texas
v-ayne County, Mich.
-^Georgia S t a t e highway Auth.
*Los Angeles Flood Control D i s t . , C a l .
Omaha Public Power l a s t . , Nebraska
Orleans Parish Sen. D i s t . , La.
Dade County, Florida
J a c k s o n v i l l e Expressway Auth.
State of Kentucky

G.O.
G.O.
G.O.
G.O.
Kev. ••Rent.
G 0.
G 0.
Rev. -S.'f.
G, 0.
Rev. -Ut.
G. 0.
G. 0.
Rev. - u t .
G. 0.

10.3
35.0
1*8.7
100.0

Oct.
Oct.
Oct.
Oct.

5
Ill
16
18

25.0
16.8 35.0
20.0
17.0
10.0
46.0
'•0.0
35.0

i5.o

Oct. 19
Oct. 19
Oct. 31
Nov. 15
Nov. lU
Nov. 16
Indefinite
Indefinite
Indefinite
Indefinite

20.0
15.0

Oct.
Oct.

OTHER
Japan Development Bank
*Govt. of New Zealand

Bonds
Bonds

*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and o t h e r i s s u e s of $L5 m i l l i o n and over; S t a t e and
l o c a l government issues of §10 million 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
ievelopmoit i s s u e s rnd non-guaranteed i s s u e s by Federal agencies,
i-ote.—Deletions f o r reasons o t h e r than s a l e of i s s u e : None.




^xl;ibit K

—.16—

Yields on New and Outstanding
Electric Power. Bonds, Bated Aa and A 1/
7

7

A-rated offering yields
Aa-rated offering yields
Amount above
Amount above
Actual
Actual
seasoned y i e l d s
seasoned yields
(per cent) (basis points) (per cent) (basis points)

Date

1952-1960 - high
Low
1961 - Jan. 12
18
25
Feb. 8
16
16
har. 23
24
Apr. 13
21
26
27
May 17
18
19
23
26
June 8
13
28
July 13
26
Aug. 3
9

y

2/

5.30 (12/8/59)
2.93 (3/31/52*)

^

87
-8

4.60
4.55
4.44

123
-15

4.60
4.65
4.47
4.50
4.40
4.65 2/
4.80 2/ -

-2
5
-13
5
-5
17
32

11
7
-2

4.37

5.65 (9/18/59)
3.00 (3/17/54)

8

MO
a. 67
4.50 2/
1.57

43
29
13
20

4.65

27

4.87

41

4.65

iM

4.85

29

4.72

.

- 19

4.80

27

4.94
5.12
4.92

4o
55
36

4.93

29

4.90

20

Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond Survey.
Except where indicated, the actual y i e l d figure and the amount above seasoned
yields are averages of offerings during the indicated period and of the d i f f e r
ences between these new offering yields and y i e l d s on seasoned issues of
similar quality for the same day. Average maturity for the seasoned issues
varies from 26 to 28 years.
Provides f o r a 5-year period during which issue may not be called for refunding a t a lower coupon rate. Monthly averages so marked include one or more
issues with such a provision. Other issues have no such provision.




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