Full text of H.16 Capital Market Developments : October 3, 1960

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tot f o r Publication
- H.llt-

A P I B , SIX MOmHS

i

October 3, 19&>.
ISAflTAL MARKET DEVELOPMENTS
IN THE UNITED STATES AND CANADA
(Including Monthly Review of Sources and Uses
of Funds of Financial Intermediaries)
P a r t I - United S t a t e s

Two l a r g e corporate bond i s s u e s with proceeds of $90 m i l l i o n
were p u b l i c l y s o l d l a s t week, S t a t e and l o c a l government bonds with
par value of $111 m i l l i o n were o f f e r e d and A u s t r a l i a sold a $2$ m i l l i o n
bond i s s u e . This week, ending October 7# the corporate calendar i s
heavy with l a r g e p u b l i c o f f e r i n g s scheduled t o t a l i n g $170 m i l l i o n , b u t
only one l a r g e Sta te and l o c a l government bond i s s u e f o r #L0 m i l l i o n
i s scheduled.
Long-term bond y i e l d s - Yields on a l l major types of long-term
bonds increased l a s t week. The increase was f a i r l y sharp i n y i e l d s on
S tate and l o c a l government o b l i g a t i o n s but s l i g h t i n y i e l d s on corporate
and U. S. Government bonds.
Short- and intermediate-term i n t e r e s t r a t e s - Yields on t h r e e month Treasury b i l l s declined l a s t week while y i e l d s on six-month b i l l s
and t h r e e - to f i v e - y e a r Treasury o b l i g a t i o n s i n c r e a s e d s l i g h t l y . Other
s h o r t - and intermediate-term i n t e r e s t r a t e s were s t a b l e .
ENMfl. secondary market operations - Mortgage o f f e r i n g s t o FNMA
under i t s secondary market o p e r a t i o n s ' f u n c t i o n rose somewhat i n August,
mostly f o r standby commitments, whereas FNMA. purchases and s a l e s d e c l i n e d .
Immediate purchase ( o v e r - t h e - c o u n t e r ) o f f e r i n g s were s l i g h t l y l a r g e r than
i n July even thought FNMA, increased i t s purchase p r i c e by 1/2 point e f f e c t i v e
August 19—the second i n c r e a s e w i t h i n s i x weeks. The l e v e l of o f f e r i n g s
t o iNMA, however, continued t o be w e l l below t h a t of l a s t f a l l and winter
when mortgage markets were under heavy p r e s s u r e .
October new security volume - Sales of new s e c u r i t i e s t o r a i s e
new c a p i t a l by corporations a r e expected t o be l a r g e i n October, t o t a l i n g
#1,0 b i l l i o n . This volume of f i n a n c i n g , which i n c l u d e s a $256 m i l l i o n
debenture o f f e r i n g by AT&T, would be about one-eighth l a r g e r than i n
October 1959.
Bond s a l e s by S t a t e and l o c a l governments during October, on
the b a s i s of i s s u e s c u r r e n t l y scheduled, a r e expected t o be moderate,
t o t a l i n g about
0 m i l l i o n . This i s about o n e - t w e l f t h l e s s than bond
s a l e s i n October of 1959 and o n e - f i f t h l e s s than i n September of t h i s
year.
"




I n s t i t u t i o n a l i n v e s t o r s - T o t a l s a v i n g s i n f l o w during J u l y
a t t h r e e m a j o r t y p e s of f i n a n c i a l i n s t i t u t i o n s — l i f e i n s u r a n c e companies,
savings and l o a n a s s o c i a t i o n s and mutual s a v i n g s b a n k s — t o t a l e d $ . 8
b i l l i o n , $ . 1 b i l l i o n l e s s than a y e a r e a r l i e r . The growth a t l i f e
i n s u r a n c e companies and s a v i n g s and loan a s s o c i a t i o n s was s u b s t a n t i a l l y
s m a l l e r t h i s J u l y t h a n a y e a r e a r l i e r . However, while d e p o s i t s f o r
mutual s a v i n g s grew only s l i g h t l y , t h e y had d e c l i n e d i n J u l y 1959. (Time
and s a v i n g s d e p o s i t s a t commercial banks a l s o i n c r e a s e d t h i s J u l y i n
c o n t r a s t t o a d e c l i n e i n J u l y 1959.)
For t h e f i r s t seven months t h i s y e a r , combined growth a t t h e s e
i n s t i t u t i o n s t o t a l e d $7.7 b i l l i o n , b p e r cent s m a l l e r than i n t h e comparable
p e r i o d of 195?. Savings and loan a s s o c i a t i o n s were t h e only m a j o r t y p e of
i n s t i t u t i o n which had a l a r g e r inflow—it p e r c e n t l a r g e r — t h i s y e a r . The
growth of l i f e i n s u r a n c e c o m p a n i e s ' - a s s e t s was 5 p e r c e n t s m a l l e r d u r i n g
t h i s p e r i o d t h a n a y e a r e a r l i e r , and t h e i n c r e a s e i n d e p o s i t s a t mutual
s a v i n g s banks was t w o - f i f t h s s n a l l e r .
The n e t i n c r e a s e i n l i f e i n s u r a n c e company a s s e t s t o t a l e d $628
m i l l i o n i n J u l y , one-seventh s m a l l e r t h a n i n t h e c o r r e s p o n d i n g month of
1959. The n e t i n c r e a s e i n "holdings of U. S . Government s e c u r i t i e s , a l t h o u g h
moderate, was much l a r g e r than l a s t y e a r . Net a c q u i s i t i o n of b u s i n e s s
s e c u r i t i e s continued t o be s m a l l e r t h a n i n t h e comparable month of l a s t
y e a r , with t h e J u l y t o t a l b e i n g o n e - f i f t h s m a l l e r . The n e t i n c r e a s e i n
mortgage h o l d i n g s was v e r y s m a l l — o n l y $63 m i l l i o n , t w o - t h i r d s l e s s t h a n
i n J u l y 1959. This i s t h e S m a l l e s t monthly i n c r e a s e i n t h e s e h o l d i n g s
s i n c e l a t e 191*6, b u t appears t o r e f l e c t s p e c i a l c i r c u m s t a n c e s r a t h e r than
any t r e n d i n i n v e s t m e n t p o l i c y .
Share c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s i n c r e a s e d $114*
m i l l i o n i n J u l y , n e a r l y a f o u r t h l e s s t h a n t h e i n c r e a s e i n J u l y 1959. T h i s
i s only the second t i m e t h i s y e a r t h a t t h e i n c r e a s e i n s a v i n g s c a p i t a l has
been s m a l l e r t h a n i n t h e comparable month l a s t y e a r . The i n c r e a s e i n s h a r e
c a p i t a l i s u s u a l l y s m a l l i n J u l y , however, because of withdrawals f o l l o w i n g
t h e c r e d i t i n g of d i v i d e n d s , and t h e growth t h i s y e a r was t w i c e a s l a r g e a s
t h e J u l y 1958 i n c r e a s e . Savings and l o a n a s s o c i a t i o n s reduced t h e i r
borrowing t o t h e F e d e r a l Home Loan Banks and o t h e r i n s t i t u t i o n s by $118
m i l l i o n i n c o n t r a s t w i t h an i n c r e a s e i n borrowing i n July 1959. Mortgages
were t h e only t y p e of a s s e t i n c r e a s i n g t h i s J u l y , and n e t a c q u i s i t i o n of
them was o n e - e i g h t h s m a l l e r t h a n l a s t y e a r . Holdings of U. S. Government
s e c u r i t i e s d e c l i n e d m o d e r a t e l y ; i n J u l y 1959 they had i n c r e a s e d s u b s t a n t i a l l y .
D e p o s i t s a t mutual savings banks i n c r e a s e d $21 m i l l i o n i n J u l y ,
i n c o n t r a s t w i t h a d e c l i n e of $5U m i l l i o n a y e a r e a r l i e r . Net l i q u i d a t i o n
of U. S. Governments was somewhat l a r g e r t h a n in J u l y 1959. . There was a
s l i g h t n e t a c q u i s i t i o n of b u s i n e s s s e c u r i t i e s t h i s J u l y , w h i l e i n t h e
comparable month of 1959 t h e r e was l i q u i d a t i o n of t h e s e h o l d i n g s . Net
p u r c h a s e s of m o r t g a g e s , a l t h o u g h c o n t i n u i n g to be l a r g e — t o t a l i n g $159
m i l l i o n — w a s o n e - t e n t h s m a l l e r than l a s t J u l y .




-3-

Common 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 index of $00 stocks, declined s l i g h t l y l a s t week.
Stock p r i c e s declined sharply e a r l y i n t h e week but on Friday recovered
most of t h e e a r l i e r l o s s e s , c l o s i n g on Friday a t 53«52. Trading volume
averaged 3 . k m i l l i o n shares a day, the h e a v i e s t volume s i n c e June.
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 Attached e x h i b i t s .
Developments i n t h e Canadian c a p i t a l markets a r e presented i n
P a r t I I a t t h e 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.




•
L O N G - T E R M B O N D YIELDS

HIGH-GRADE

LOWER-GRADE




•

\i

Exhibit B - Tables f o r Exhibit A
Long-term Bond Yields
Higfr-grade

H.Ik

Date

U. S. Govt,
long-term 2 /

Corporate
Aaa 1 /

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

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

(Per cent)
Low
High
Low
High
Low
I960 - H i g h
Low

2.85
ll.li*
3.55
i . 6 l 12/31
U.09 1/9)
it. 61
it. 23

Sept.
Sept.
Sept.
Sept.
Sept.

lt.23
it. 23
it. 26
it. 26
it. 27

1951*
1957
1958
1959

-

2
9
16
23
30 2 /

2.16 (8/6)
3.76 (10/18)
3.07 ( V 2 5 )
U.37 (12/31)
3.83 ( 1 / 2 )
h.h2 (1/8)
3.75(8/5)

1.90 (9/2)

ft,

3.06 (3/26)

3.81
3.8L
3.81
3.79
3.81

I

.22

liifi,

.92
.53
.92
.53

3.53 (1/7)
2.99 ( 9 / D

.59

2.99
3.03
3.13
3.13
3.18

.39

.85

:i2

.71

.19

.81

:S

.66

.63

Lower-grade
Corporate
Baa 1 /

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

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

(Per cent)
195k
1957
1958
1959

Low
High
Low
High
Low
1960 - High
Low
Sept.
Sept.
Sept.
Sept,
Sept.

-

2
9
16
23
30 2 /

3.iai (12/31)

2.93 (8/5)

t

Kits'
LI16 (7/2)

s

i S

w

1%'

5.36 (2/12)

k.98 (9/9)
5.01
it. 98
1.99

5.02
5.01

.52
1.27
.77

.96

1.21
.93
.98
.79

3.92 (3/26)
L L 6 (1/7)
i».o5 (9/1)

.8it
.71

^.92

1.05
4.07
It. 09
it. 09
it. 13

.78
.75
.73
.76
.77

1.06
1.0L
.96
.96
.95

1.08

p/ Preliminary.
\ / Weekly average ef dally figures. Average term ef bonds Included Is 26-26 years.
2/ Weekly average of dally figures. The series Includes tends due or callable In 10 years or more.
3/ Thursday figures. Only general obligation bonds are Included; average term Is 20 years.
Note.^Hlghs and lews are for Individual series and may be en different dates for different series.




V

tHOBT.

AND

INTERMEDIATE-

TERM

INTEREST

RATES

GOVERNMENT

3 - 5

YEAB

ISSUES

f. I .

MARKET

DISCOUNT

YIELDS

PRIVATE




FINANCE

COMPANY

FARE*

IATE

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

Discount
rate 1/

Yields
6-month
b i l l s 2/

3-month
b i l l s 2/

3-5 y e a r
issues 2/

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 1 3 - 5 y r . i s s u e s "

(per cent)
Low
High
Low
High
Low
1960 - High
Low

1.50
3.50
I.75
II.OO

Sept.
Sept.
Sept.
Sept.
Sept.

3.00

195*1
1957
*958
1959

-

2
9
16
23
30 jd/

2.50
li.oo
3.00

3.00
3.00
3.00
3.00

.61 (6/11)

—
1.66
U.0I4
3.02 (12/26) 2.11*
( 1 2 / ^ ) lt.91 (12/31) 5.00
(2/20) 2.92 (1/2)
3.70
(1/8) 5.07 .(1/8) 4.97
(8/5)
2.39 (8/5)
3.1i7

3.6k (10/18)
L57
2.63

L59

2.13

2.53
2.56
2.58
2.1*3
2.35

2.82
2.83
2.87
2.80
2.82

(I1/30)
(10/18)
(6/6)
(12/21*)

.66
.86

.26

.79
.19
.58

xS

i t

.29
.27
.29

$

'.hi

.98
.95
•95
1.0U
1.15

(1/2)

(1/8)
(9/23)

3.51

.ItO

1.81

.16

.38

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 j /
finance company
paper r a t e s
( p e r cent)

Low
High
Low
High
Low
I960 - High
Low
1951*
1957
1958
1959

Sept.
Sept.
Sept.
Sept.
Sept.

-

2
9
16
23
30 e /

3.00
li.50
3.50
5.00
h.00
5.50
li.50

3.00
li.50
3.50
5.00
ll.OO
5.00
li.50

1.25
3.88
1.13
li.88
3.00
5.13
2.9li

. 14.50
L50
li.50
li.5o
li.5o

li.50
li.50
li.50
li.50
li.50

3.01
3.06
3.11
3.19
3.19

1/

(12/31)
(11A5)
(8/8)
(12/31)
(3/6)
(1/22)
(8/26)

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

(12/18)
(7/19)
(8/29)
(10/9)
(12/W
(3/25)
(1/15)

.18
.50
.53
.76
.8li

Weekly r a t e shown I s t h a t I n e f f e c t a t end of p e r i o d . Discount r a t e Is. f o r F e d e r a l Reserve Bank of Hew York.
Stock *xohange c e l l l o a n r a t # l a g o i n g r a t a on c a l l l o a n s s e c u r e d t y o u a t c a e r s * stook exchange c o l l a t e r a l a t
New York C i t y b a n k s . Prime r a t e I s t h a t c h a r g e d by l a r g e banks on s h o r t - t e r n l o a n s t o b u s i n e s s b o r r o w e r s of
the highest credit standi r y .
2 / Market y i e l d ; weekly a v e r a g e s ©ompirted f r o * d a l l y c l o s i n g b i d p r i c e s . S e r i e s o f 3 - 5 y e a r I s s u e s n o n d s t s of
s e l e e t e d n o t e s and b e w l i .
3 / Average of d a i l y r a t e * pul.llehed by ttntmue o o e p a n l e s f o r d i r e c t l y p l a c e d p a p e r f o r v n r y l n e m a t u r i t i e s I n t h e
90-179 day raivi*.
Mote.—llifthe and lowe a r e f o r I n d i v i d u a l s e r i e s . o,nd may be on d i f f e r e n t da t e e f o r d i f f e r e n t s e r i e s . For s p r e a d s ,
n i g h r e f e r s t o w i d e s t , and low t o narrowest'.'




*
STOCK

MARKET
1941.43 A v . f o g . , 1 0

STOCK MARKET CBIWT

FEDERAL

NATIONAL

SECONDARY

MARKET

y

MORTGAGE

ASSOCIATION

OPERATIONS

]

OFFERINGS J

:1,1,1

A

IM

h

-

I L
/ r. M

r s
Xzr ( mcius




/
/

v*\
J

I

W

/

f

r

'

'W_J
V'

j

1*59

! mo

Exhibit F - Tables l'or KxtiibiL E
Stock Market
Trading
Common
stock
volume 2 /
y i e l d s 2 / (millions
(per cent) of shares)

Stock price
index 1/

Date

1957-59 - High
Low
I960 - High
Low

60.51
39.78
59.50
53.52

JulyAugust
Sept. 16
Sept. 23
Sept. 30 e /

55.84
56.51
55.11
53.90
53.52

(7/31/59)
(12/27/57)
(1/8)
(9/30)

3.07
4.66
3.18
3.62

4.3
1.4
3.9
2.4

Stock market custpmer c r e d i t
Customers1
Bank
debit b a l - loans to
ances it/ "others" 5 /
(Millions of d o l l a r s )
1,373
3,401
4,764
1,060
2,482
3,554
1,167
.3,198
4,365
1,111
3,004
4,132

3.15
3.43
3.51
3.58
3.62

2.7
2.8
2.4
3.0
3.4

4,133
4,243
n.a.
n.a.
n.a.

1,129
1,13k

3,004
3,109
n.a.
n.a.
n.a.

1,116

1,11*7
n.a.

n.a.—Not available.
g/ Preliminary.
1 / S t a n d a r d and P o o r ' s •• r e p e a l t e index of 500 oomnon s t o o k a , weekly c l o s i n g p r i c e s , 1941-43*10. Monthly d a t a
a r e average a of d a i l y f i g u r e s r a t t i e r t h a n of F r i d a y s ' o n l y . Highs and lows a r e f o r F r i d a y s ' d a t a o n l y .
2 / S t a n d a r d and P o o r ' s composite atook y i e l d baaed on Wednesday d a t a c o n v e r t e d t o weekly c l o s i n g p r i c e s by
F e d e r a l R e s e r v e . Y i e l d s shown a r e f o r d a l e s on which p r i c e index r e a c h e d i t s h i g h or low.
3 / Averages o f d a l l y t r a d i n g volume on t h e New York Stock Exoli&nge.
4 / End of month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange which c a r r y margin a c c o u n t s ; e x c l u d e s
b a l a n c e s secured by U. 5 . Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r weekly r e p o r t i n g member b a n k s .
e l u d e s l o a n s f o r p u r c h a s i n g or c a r r y i n g 0 . S .
Government s e c u r i t i e s * P r i o r t o J u l y 1 , 1959, s u c h l o a n s a r e exoludr.4 only a t banks i n New York and Chicago.
Weekly r e p o r t i n g banks acco u n t f o r about 70 p e r o e n t of l o a n s t o o t h e r s , For f u r t h e r d e t a i l its B u l l e t i n .

Federal National Mortgage Association Secondary Market Operations 1/

1959 - Aug.
Sept.
Oct.
Nov.
Dec.
1960 - Jan.
Feb.
Mar.
Apr.
MayJune r /
July rj
Aug. 2 /

m

Sales
by
FNMA

Purchases
Estimated Offerings to FNM
by
Standby
Immediate
Total
HJMA
purcliase commitment
(Millions of d o l l a r s )

Date

m

123.1
141.3
108.3
105.6
116.3
137.6
135.8
133.2
103.5
98.5
99.9
88.0
104.0

13.3
6.5
6.5
5.3
4.9
9.3
6.9
8.6
7.3
4.7
6.1
5.1
1W

109.9
134.8
101.8
100.3
111.4
128.3
128.9
124.6
96.2
93.8
93.7
82.9
89.1

m

eeewitwent c o n t r a c t s . Data exclude

L i q u i d a t i n g Programs.


m

.

m

71.7
85.4
105.5
92.6
92.2
86.1
116.7
135.0
102.6
91.9
60.8
93.7
75.6

.3
.3

—
*

3.6
1.0
3.2
.1

s

PIMA a c t i v i t y under S p e c i a l A s s i s t a n c e and Management and

-/£>-

Exhibit G
Long-term Corporate and S t a t e and Local Government
Security O f f e r i n g s and Placements
(In m i l l i o n s of d o l l a r s )
New c a p i t a l
I960
January
February
March

Corporate 1 /
1
1 1959

1958

I960

728

738
623
575

S t a t e and l o c a l 2/
1
1958
1
1959
6#
858
646

812
953
511

1,030

932
593
1,006

798
895
551

1,107
540
1,114

2/555
e/600
e/675

s i
465

806
403
651

519
455

456
474
435

577
715
860

821
738
646

1,032/

April
May
June

766
567
1,034

89k
785
887

1,140
597
887

July
August ^
September

e/700

7 ho
703

§

October
November
December

e/1,000

879
861*
900

862
518
920

e/550

1st
2nd
3rd
4th

2,151
2,367
2/2,372

2,20k
2,567
1,979
2,642

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

1,936
2,3U
e/1,830

2,143
2,531
1,548
1,571

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

4,771
6,750
9,392

5,762
8,522
10,823

' 4,247
2/6,077

4,674
6,222
7,7.93

4,520
6,380
7,746

quarter
quarter
quarter
quarter

1 s t half
Three quarters ~
Year

e/6,890

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

quarter
quarter
quarter
quarter

1,722
2,150
2/1,922

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 c o n v e r t i b l e debenture i s s u e .
T o t a l 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 finance
companies.




Ex J l i b i t H

h..Ui

-11-

Other Security O f f e r i n g s 1 /
( I n m i l l i o n s of d o l l a r s )
Long-beim
Federal apency
Foreign government 2/
I960
|
1959
I
19%T
I960
1 1959
2
172
70

81
60
2

196
53

34
72
40

58
50
1*2

139
198
120

July
August
September

85
1
35,

9
5
17

October
November
December

33
30
70

58
123
74

86

5U7

992

707

Year

—

April
May
July
Aupust
September

EHE
1,163
251

175

—

3JU8
35ii

523
—

—

__
2/200

161*
98
150

.

—

220

Short-term
S t a t e and l o c a l government 1*/
January
February
March

199

I

April
May
June

182
150
150

2,321

i

JanuaryFebruary
March

2.68
3U*
365

190
128
295

233
I460
273

179
1*75
511

359
500
1*89

371
208
lW

365
,351
297

563
1*11
215

357
351*
261*

509
632
435

1*86
675
289

209.
161
329

280
e/370

2l*6
1*67
399

289
123
369

312
1*68

727
365
665

1*37
206
330

231
U5
2l*3

733
1*71
288

161*
111*
137

3,910

6,047

3,098

October
November
December

235
3ii3
358

Year

h,179 /

-

E/ PrelUilrttry.
1 / Data p r e s e n t e d i n t h i s e x h i b i t d i f f e r from t h e s e i n E x h i b i t E i n ttoxt r e f u n d i n g i s s u e s , a n w e l l a s n<sir
c a p i t a l i s s u e s , a r e I n c l u d e d . Long-term s e c u r i t i e s a r e d e f i n e d a s t h o s e
i n » . t r c t h a n ana y e a r .
2 / I n o l u d o * n e o u r l t t e s o f f e r e d i n t h e UnlVod,Stakes hy f o r e i g n govorr.mnnts a n d t h e i r ru'odt v i s i o n s a n d by
i n S e r n n t l o n a l o r g i n J i i i t l o n a . T o u r i s : S e c u r i t i e s jam! Exuhr.nge Commisslor.,
3 / I33US3 n o t g u o r » M < i d by t h e U. S. Governner.!-. Souroai l o n g - t o r n , S e c u r i t i e s and Ebtoharjge C o n n l n s l o n i
s h o r t - t e r m , Federal Reserve.
4 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s o r c e r t i f i c a t e s ar.d P u b l i c Housing A u t h o r i t y
r.ot»«. I n sotna i n s t a n c e s l'HA r o t e s inoluilnd may have a somewhat l o n g e r term t h * n ons y e a r . Source» Bond Buyer.




'

-12-

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

Month

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

Corporate

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

363
199
loo
1*21
230
279
262
38U
309
139
\kz
303
581

263
2Ui
29h
163
217
388
283
225
370
23U
561
191
298

Other 2/

98
175
20
70
100
320
191
71
28
30
75

Large Individual I s s u e s Offered during September

Type ] /

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

CORPORATE
Virginia Elec. & Pwr. Co. 1st r e f . m t g . b d s .
Pfd.stk.
Public Serv. Co. of Colo.
1 s t mtg.bds.
Utah Power & Light Co.
Public Serv. Elec.&Gas Co. 1st r e f . m t g . b d s .
1 s t mtg.bds.
^ - P a c i f i c Pwr. & Lt. Co.
1 s t mtg.bds.
Union Electric Co.
Ref.mtg.bds.
New York Telephone Co.
S.F. deb.
Continental Can Co.

25.0
15.0
16.0
50.0
20.0
50.0
60.0
30.0

Rating

1990

1,-5/8

1.58

Aa

1990
1990
1990
1990
1997
1985

h-7/8
h-3/h
5-1/8
h-3/b
li-5/8
lt-5/8

L.80
ii.62
5.08
L65
ii.5ii
it. 63

A
Aa
Baa
Aa
Aaa
A

STATji AND LOCAL GOVERNMENT
Alameda-Contra Costa
Transit D i s t . , C a l i f .
Ala. Highway Auth.
New York State Thruway Auth
City & Co. of San Fran.
Pa. St. Rwy & Bridge Auth
Public Housing Auths.
Puerto Rico Aquaduct 6
DigitizedSewer
for FRASER
Auth.

—

16.5
15.0
50.0
21.5
10.0
18.9

1962-80^
1961-80
1985-95/
1961-80=/
1961-80/68
1961-2001

3.20
3.61
3.16
3.00
3.15
3.W

1.80-3.35
1.70-3.70
3.20-3. b$
1.60-3.25
1.50-3.30
1.50-3.60

Aa
A
Aaa
Aa
Aa
Aaa

Rev.-Ut.

10.0

1962-2000

it. 20

2.25-LlO

Baa

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



Laxge I n d i v i d u a l I s s u e s Offered during September (Cont'd)

type 2 /

Coupon
Amount
Offering
( m i l l i o n s Maturity r a t e or
net inter- yield
of
e s t cost
dollars)

Rating

STATE AND LOCAL GOVERNMENT
(Cont ? d)
Milwaukee s Wise.
S t a t e of Michigan
S t a t e of Connecticut
B u f f a l o , New York
D e t r o i t , Michigan
D e t r o i t 9 Michigan
D e t r o i t Sch. D i s t . s Mich.
S t a t e of Louisiana
S t a t e of C a l i f o r n i a

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

10.8
25.0
35. U
12 0 3
$. 1

5.5
10.0
15-0
75.0

1961.73
1961-85
1963-80
1961-89
1961=87
1965-95
1962=8?
1961=81;
1962-86

2.69
3.78
2.89
2.83
3.38
3.78
3.88
3.61
3.81

1.50-2.85
1.80-3.90
2.00-3.10
l.W-3.25
1.70-l.W
2.50-3.85
2.20-LW
1.70-3.85
2.00-3.91

5-iA

5oii2

Aaa
A
Aaa
Aaa
A
Aa
A

£

Aa

OTHER
Commonwealth of A u s t r a l i a
IT
2/
2/

h/

. Bds.

25.0

'1980

A

Includes corporate 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 million 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 $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 agencies 0
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
obligations3 Rev„=Ut„<, revenue o b l i g a t i o n s secured only by income from p u b l i c
u t i l i t i e s ; Rev0 -Q.Ut. 9 revenue bonds secured only by revenue from qua s i - u t i l i t i e s
Rev.-S„T„ s revenue bonds secured by revenue from s p e c i f i c taxes only5 Rerv.-Rent. s
revalue bonds secured s o l e l y by l e a s e payments 0
1980 m a t u r i t y not r e o f f e r e d .




-ill-

Exhibit J
Forthcoming Large Long-term Public Security Offerings f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
During month following
date shown—

Date of
computation

OTP™*" 1 1 ^ 1 ^ . I

1959 - Aug. 31
Sept. 30
Oct. 30
Nov. 30
Dec. 31
i960 - Jan. 29
Feb. 29
Mar. 31
Apr. 29
Ma y 31
June 30
July 29
Aug. 31

198
37k
385
226
210
207
301
299
202
483
237
596
216

0 t t o r

Subsequent t o
date shown
1/

25

385
270
115
295
1*1*5
210
255
250
21*3
277
180
275
283

70
30
1*5
35
30
30
—

Corporate

^ J o t f a e r tj
U02
1*70
336
1|85
5U5
310
385
280
258
502
380
321*
283

517
69k
5ti9
271
280
252
372
3W*
357
553
1*55
1,006
731

25
70
30
1*5
35
60
30
—

Forthcoming Large O f f e r i n g s , as of September 30
Issuer

Type

(millions
I of d o l l a r s )

Approximate d a t e
of o f f e r i n g

CORPORATE
San Diego Gas & Elec. Go.
1 s t mtg. bds.
Lst mtg. S.F. bds.
Youngstown Sheet & Tube Co.
Deb.
Household Finance Corp.
Columbia Gas System
Deb.
S.F. deb.
Associated Dry Goods Corp.
General Acceptance Corp.
Sen. deb.
Louisville Gas & Elec. Co.
1 s t mtg. bds.
P a c i f i c Lighting Gas Supply Co.
S.F. deb.
1 s t mtg. bds.
Florida Power Co.
Deb.
American Telephone and Telegraph Co.
John Deere Credit Corp.
Deb.
Idaho Power Co.
1 s t mtg. bds.
eUhited Gas Corp.
Bds. & deb.
^Wisconsin Elec. Power Co.
1 s t mtg. bds.
Trustors' Corp.
P a r t l c . c e r ti f .
Commerce Oil Refining Corp.
Deb., bds. & com.
Liberian Iron Ore, Ltd.
Bds. & stk.
Natural Gas Pipeline of America
1 s t mtg. bds.
Natural Gas Pipeline of America
Pfd. stk.




30.0
60.0
50.0
30.0
20.0
20.0
16.0
25.0
25.0
250.0
50.0
15.0
60.0
30.0
1*0.0
1*5.0
30.0
25.0
15.0

Oct. 5
Oct. 5
Oct. 6
Oct. 7
Oct. 12
Oct. 17
Oct. 19
Oct. 20
Oct. 21
Oct. 25
Oct. 27
Nov. 15
Nov. 1
Nov. 16
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

-15-

J-2
Forthcoming Large O f f e r i n g s , a s of September 30 (Cont'd)
Issuer

Type

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

STATE AND LOCAL GOVERNMENT
O r l e a n s , P a r i a h , L a . , School Dist.
Kentucky Turnpike Auth.
* S t a t e of Massachusetts
*Dade County, Florida
Los Angeles County, C a l i f . , Flood
Control D i s t .
Pa. State Public School Bldg. Auth
Los Angeles Harbor D i s t . , C a l i f .
New York S t a t e Housing Finance Agenqg
Los Angeles, C a l i f . , Dept. of Wtr.
and Pwr.

0.0.
Rev.
G.O.
0.0.
G.O.
Rev.-Rent.
Rev.
Rev.

10.0
55.0
69.5
1*6.0
10.0
21.3
12.0
100.0

Oct.
Oct.
Oct.
Oct.

5
3
10
18

Oct. 18
Oct. 19
Nov. 15
November

Rev.-Ut.

12.0

Indefinite

i. & n o t e s
Bds.
Bds.

35.0
50.0
1*2.0

Oct. 17
Nov. 15
Oct. 5

OTHER
High Authority of the European Coal
and S t e e l Community
Tennessee Valley Auth.
^Federal Land Banks

*—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 $15 m i l l i o n and over; State and l o c a l
government i s s u e s 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
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 o t h e r than s a l e of i s s u e : None.




Exhibit K

-16-

Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1 /
Date

1952-1959 - High
Low
1959 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1960 - Jan. 7
Feb. 25
26
Mar. 15
16
18
29
Apr. 6
8
lit
21
27
May 10
12
25
June 17
28
29
July 8
_
13
Sept. 15
23
28

Aa-rated offering 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 (per cent) seasoned y i e l d s
(basis points)
(basis points)
5.30 (.12/8/59)
2.93 (3/31/5*0

87
-3

*it.93
4.83

31
23

5.13^/
*5.08
*5.30

:
63

5.08
5.10
t - »

is
32
17

It. 85

33

kjk

39

k.95

39
32

i t . 8 8

5.65 (9/18/59)
3.00 (3/17/5U)
5.07

17

>5.65
5.33

60
lt3

5:3^

51
28

5.00
it.93

11
7

lt.98

21

5.30

50

5.10

26
33

5.20
.It. 82
it.8it

lt.65,
1.55^/

25
27

25
15

123
-15

It.95
it.93
it.88
it. 80

•11

8
2U

*—Single observation, not an average.
1 / 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 y i e l d s are averages of offerings during the indicated period and of
the differences 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 i s s u e s
of similar quality f o r the same day. Average maturity for the seasoned i s s u e s
varies from 26 to 28 years.
2 / Provides f o r a 5 - y e a r period during which i s s u e may not be c a l l e d f o r
refunding a t a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s 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 .




-17-

Exhibit L
Sources and Uses of Funds by
L i f e Insurance Companies

Cash

U. S.
Govt.
ities

Value of a s s e t s a t
end of p e r i o d :
1956 - Dec.
1957 - Dec.
1958 - Dec.
1959 - Dec.
i960 - July

Uses of funds 1 /
S t a t e and
Business
l o c a l govt. Mortgages
secursecuri t i e s 2/
ities

Other

Total
sources
o r uses

( I n m i l l i o n s of d o l l a r s )
1,273
l,29l*
1,363
1,327
1,225

7,519
7,028
7,182
6,81*8
6,632

39,552
42,133
a,612
46,977
17,991

2,231*
2,377
2,691
3,177
3,1*21

32,994
35,271
37,092
39,299
1*0,691*

12,272
13,206
1U,61*0
15,998
17,01*2

95,81*1*
101,309
107,580
113,626
117,005

22
-18
1
-17

191
129
211*
309
137
308

21*
37
20
26
32
12

128
139.
11*2
186
11*5
291

1*5
151*
72
72
88
331*

582
1*85
1*53
587
1*76
913

Changes:
1958 - July
Aug.
Sept.
Oct.
Nov. .
Dec.

110

172
1*1*
1*
11
19
-11*2

1959 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-81
-57
-ll*
-21*
10
3
-15
19
-31
22
33
99

303
-71
-185
22
-16
11
13
95
-185
-22
-131
-168

188
223
251
21*2
193
21*2
211*
75
95
208
207
227

53
.30
66
1*9
79
23
9h
30
15
8
16
23

119
139
136
116
135
157
211*
171*
211
251
2h0
315

-17
171*
108
80
97
60
208
101
95
92
131*
226

5#
1*38
362
1*85
1*98
1*96
728
1*91*
200
559
1*99
722

i960 - Jan.
Feb.
Mar.
Apr.
May

-91
-53
-30
39
-12
33
12

163
-36
-167
-85
-62
-102
73

128
125
101*
134
231
125
167

20
25
35
21
26
13
101*

271*
196
21*2
225
203
192
63

82
207
115
95
128
211
206

576
1*61*
299
1*29
511*
1*69
628

July
Aug.
Sept.

55

1/ Uses of funds represent n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r
than g r o s s , u s e s .
2 / Includes s e c u r i t i e s of domestic corporations only.
Source.—-Institute of L i f e Insurance.




Exhibit M

-18-

Sources and Uses of Funds by
Savings and Loan Associations

Cash
Value of a s s e t s
at end of period
1956 - Dec.
1957 - Dec.
1958 - Dec.
1959 - Dec.
i960 - July

Uses of funds 1 /
U. S.
Govt.
Mort- Other
gages 2j 'assets
ities

Total
sources
or uses

Sources of funds
Net
Borrow- Other
change
ing y
savings
capital

(In millions of dollars)
2,119
2,146
3,585
2,201
2,055

2,782
3,173
3,819
4,474
4,533

35,775
140,049
45,627
53,093
56,999

2,199
2,770
3,108
3,707
3,795

42,875
48,138
55,139
63,475
67,382

37,148
11,912
47,976
54,556
58,387

1,347
1,379
1,444
2,388
1,812

4,380
4,847
5,719
6,531
7,183

Changes:
1958 - July
Aug.
Sept..
Oct.
Nov..
Dec.

-290
-70
-77
-107
42
335

42
110
146
104
51
37

554
564
578
605
470
528

-90
12
45
137
102
-53

216
616
692
739
665
847

73
360
W7
507
480
1,072

-37
51
84
58
ill
212

180
205
161
174
lli4
-437

1959 - Jan.
Feb.
Mar.
Apr.
May

-298
-26
-2
-182
26

297
97
76
105
23
-4
104
17
-7
7
-34
-26

402
427
593
705
754
840
783
727
670
621
459
485

-55
80
98
151
178
10
-108
22
65
88
140
-70

346
578
765
779
981
1;091
347
723
675
648
630
773

434
408
529
420
6o4
1,090
190
394
144
399
483
1,185

-181
-56
-5
97
63
313
31
118
148
136
57
223

93
226
21*1
262
314
-312
126
211
83
113
90
-635

201
67
-27
1
15
-151

320
398
545
566
630
758
689

-113
62
100
104
209
-75
-199

468
409
623
372
633
1,182
144

-453
-125
-127
38

79
210
171
231
301
-554
214

July
Aug.
Sept.
Oct.
Nov.
Dec.
i960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.

216

-432
-43
-53
-68
65
384
-314
-33
49
-30
80
308
-206

-44

94
494 667
641
934
837
240

209
-118

r / Revised.
1 / Uses of funds represent n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r
than gross, u s e s . Savings and loan a s s o c i a t i o n s do n o t hold business s e c u r i t i e s
* and data on holdings of Sta t e and l o c a l government bonds, presumed to be small,
a r e not a v a i l a b l e .
2 / P r i o r to 1957, data a d j u s t e d t o include mortgage pledged shares as c u r r e n t l y
reported.
/for
Advances
from Home Loan Banks and o t h e r borrowing.
Digitized2Source.—Federal
FRASER
Savings and Loan Insurance Corporation.



-19'

Exhibit N
Sources and Uses of Funds
by Mutual Savings Banks

Cash

Value of
a t end of
1956 1957 1958 1959 I960 -

assets
period
Dec.
Dec.
Dec.
Dec.
July

Changes 1
1958 - July
Aug.
Sept.
Oct.
Nov.
Dec.

Uses of funds 1 /
Busi- S t a t e &
U. S.
local
ness
Govt,
Mort- Other
govt.
s
e
curgages
securi
t
i
e
s
ities
ities
12/
( I n m i l l i o n s of d o l l a r s )

920 7,971
890 7,552
921 7,266
829 6,86k
771 6,507

Net
change
in
deposits

Other

698
19,529
761
20,951
855
23,039
24,768
910
25,811 1,007

33,311
35,168
37,779
38,942
39,757

30,032
31,695
34,041
34,983
35,490

3,279
3,473
3,738
3,959
4,26?

152
251
237
40
123
309

88
143
267
95
42
4L8

64
108
-30
-55
81
-109

122
113
313
6
120
202
-54
80
197
-187
-27
340

53
103
17
-16
97
-41
86
112
-34
-96
92
-122

3,523
4,331
It,973
4,81*9
4,969

669
682
725
722
692

34
8
34
-6

8
2
2
-3
-1
-7

193
198
181
195
151
174

-28
29
29
-46
43
- 3

208
125
175
155
161
145
179
156
160
137
124
132

-58
32
38
-32
45
39
-12
33
31
-37
42
-12 "

175
216
330
-10
217
161
32
192 .
163
-283
65
218

159
116
150
129
161
169
159

-12
43
41
-21
63
-59
42

-11
167
319
-132
176
178
118

-66
-5
18
-8
-38
101

11
19
-27
-92
-32
-2

1959 - J a n . 2 / -96
Feb.
18
Mar.
45
Apr.
-ilk
May
8
June
43
July
-79
Aug.
3
Sept.
-2
Oct.
-27
Nov.
20
Dec.
111

119
39
62
—I1I4.
13
-85
-13
-12
-32
-281
-85
-12

-47
13
-2
-55
-28
23

17
-4
41
-33
10
19
4
-1
8
-20
-8
-2U

I960 - Jan.
Feb.
Mar.
Apr.
May .
Junei/
July
Aug.
Sept.

-9
-11
32
-148
-80
-93
-48

-12
-9
52
-19
13
57
38

-6
-9
3
13
-23
-4
-4

-131
37
111
-86
42
108
-69

Sources of funds
Total
sources
o r uses

47
-16
6
-31
58
-20

-68
50
320
-95
58
221
21

'

57
117
-1
-37
118
-43
97

r / Revised.
1 / Uses of funds r e p r e s e n t net changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r
than g r o s s , u s e s .
2 / Includes Canadian government and p o l i t i c a l s u b d i v i s i o n s , I n t e r n a t i o n a l Bank f o r
Reconstruction and Development, nonguaranteed Federal agency and o t h e r bonds a s .
well as corporate bonds and s t o c k s .
y Adjusted t o e l i m i n a t e t h e e f f e c t of a consolidation of a l a r g e savings bank w i t h
a commercial bank.
_
j ^
Source.—National Assoc. of Mutual Savings Banks and Federal Deposit Insurance Corp.




October 3, I960
-20-

PART I I - Canada
Canadian Treasury b i l l s held steady l a s t week near t h e i r low of
the preceding week. Despite the f a l l i n y i e l d s on U.S. b i l l s , the s h o r t
Canadian b i l l was s t i l l 66 b a s i s p o i n t s below the U.S. b i l l . Bond y i e l d s on
s h o r t - and intermediate-range m a t u r i t i e s f e l l during the week. There was a
f u r t h e r easing i n the Canadian d o l l a r from 102,63 (U.S. c e n t s ) t o 102.28
(U.S. c e n t s ) during the week.
Money market. At l a s t Thursday's a u c t i o n , the average y i e l d on
the 3-month Treasury b i l l held about steady a t 1.70 per cent per annum,
compared with 1.68 per cent i n t h e previous week. The 6-month b i l l y i e l d
rose f r a c t i o n a l l y t o 2.05 p e r cent compared t o 1.99 per cent i n t h e previous
week (see Table). The c h a r t e r e d banks again made s u b s t a n t i a l purchases
of $Ul m i l l i o n of Treasury b i l l s and the Government accounts purchased $5
m i l l i o n . Sales of $27 m i l l i o n of Treasury b i l l s were made by t h e Bank of
Canada and $lU m i l l i o n by t h e general p u b l i c . The average closing r a t e on
day-to-day loans f e l l t o l o l 5 per c e n t compared with 1.68 per cent i n the
previous week.
The i n c e n t i v e t o hold t h e U.S. Treasury b i l l r a t h e r than the
Canadian b i l l on a covered b a s i s f e l l t o 0.23 per c e n t p e r annum from 0 . 3 3
per cent i n the previous week. This -decline was due t o a sharp f a l l of 17
b a s i s p o i n t s i n the y i e l d on t h e U.S. b i l l (see T a b l e ) .
Bond market. During the week, Canadian bond y i e l d s f e l l r a t h e r
sharply i n the s h o r t - and intermediate-range m a t u r i t i e s but y i e l d s on
long-term bonds remained steady (see T a b l e ) . Due t o a r i s e i n y i e l d s on
U.S. bonds, the spread f a v o r i n g Canadian bonds over U.S. bonds f e l l somewhat.
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 parentheses r e f e r to the previous week):
-0.66
-0.78
0.52
0.91
1.01

per
per
per
per
per

cent
cent
cent
cent
cent

on
on
on
on
on

a 91-day b i l l ( - 0 . 8 2 )
a 182-day b i l l ( - 0 . 8 6 )
an 8-year bond (0.67)
a 20-year bond (0.92)
a 35-year bond (1.03)

The c h a r t e r e d banks purchased $13 m i l l i o n of bonds during t h e week while
the Government account sold $6 m i l l i o n , Bank of Canada sold $2 m i l l i o n and
t h e general public sold $5 m i l l i o n of both bonds and savings bonds (see
Table).
In an e f f o r t t o encourage c o n s t r u c t i o n of low-rent housing, t h e
Government has c u t i n t e r e s t r a t e s on i t s 50-year d i r e c t loans (which cover
up t o 90 per c e n t of t o t a l c o s t ) f o r l i m i t e d dividend p r o j e c t s from 5*875
p e r c e n t t o 5.125 per cent and increased the maximum income e l i g i b i l i t y
requirements by about $700.




-21-

In an e f f o r t t o compete f o r medium-term funds, the Bank of Nova
Scotia i s o f f e r i n g term notes, the f i r s t such experiment by a chartered
bank i n Canada, The notes are being o f f e r e d i n denominations of $10,000
and up, f o r terms from one t o s i x y e a r s , a t i n t e r e s t r a t e s of from 3.75 per
cent t o ^.00 per cent (see Table)« The term notes are similar t o t r u s t
companies 1 guaranteed investment s e c u r i t i e s but are t r a n s f e r a b l e and are
t h e r e f o r e intended t o be more l i q u i d . They are intended t o be p r i m a r i l y
f o r l a r g e investors j.^by c o n t r a s t , notes of t r u s t companies a t t r a c t small
investors with denominations as low as $500»
Quebec Telephone has made a $5 million o f f e r i n g of a 22-year
bond with a coupon of 5.50 per c e n t . I t i s priced a t 98,5)0 t o y i e l d 5.62
per c e n t . A Regina municipal debenture o f f e r i n g of $1,11*9*000 has been
sold with a coupon of 5«50 per c e n t . At a p r i c e of 97,$0, bonds maturing
in 1975 w i l l y i e l d 5*75 per cent and those due i n 1980 w i l l y i e l d 5.71
per c e n t .
Stock exchange. I n d u s t r i a l stock p r i c e s on the Canadian exchanges
f e l l generally during the week as noted irr the following t a b l e s
New York
Standard and Poor

Toronto

Montreal

I960 - High
Low

532.9k
U72.38

320.0
259.3

65.02
55.98

Sept. 20
21
22
23

185.63
U86.00
U86.38
U8U.07

26U.7
265.6
26U.5
26U.2

57.02
57.69
57.U5
56.93

26
27

U79.75
U80.50

263.6
260.8

56.OU
55.98

Foreign exchange. During the week, the Canadian spot d o l l a r
declined t o 102728 (U.S. cents) on Thursday from 102,63 (U.S. cents) the
week before (see Table). The premium on the 3-month forward d o l l a r eased
t o 0.U3 per cent per annum from 0=U9 per cent the previous week,

British Commonwealth Section
Division of International Finance
Board of Governors of the Federal Reserve System




Selected Canadian Money Market and Related Data

H

Treas. b i l l s
Spread
U.S^Z over U.S.

Canadian d o l l a r
discount { - )
Spot
3-mo.
forward premium(+)d/

1959 - High
Low
1960 - High
Low

60I6
3.25
5oiU
1.68

UcU9
2.80
L.63
2.15

2.96
0 = 30
0.90
-0=82

105.51
102.58
105=27
101.31

—

Sept, 8
15
22
29

2.09
2.07
1.68
1=70

2.55
2.53
2=50
2.33

—0 0 1*6
-0.1*6
-0.82
-O066

103=06
103.08
102=63
102.28

103.13
103.19
102075
102.39

Net incentive to
hold Can,
biUS/

0.99
-0.72

0.91*
-0.57

0.2k
0.1*2
0.1*9
0.1*3

-0.22
-0,01*
-0.33
-0.23

a / Average y i e l d a t weekly tender on Thursday.
"B/ Composite market y i e l d f o r the U.S. Treasury b i l l on Thursday close of business.
"cf In U.S. c e n t s .
d / Spread between spot r a t e and 3-month forward Canadian d o l l a r on Thursday
c l o s i n g , expressed as per cent per annum.
e / Spread over U.S. Treasury b i l l (column 3)> plus 3-month forward discount or
premium (column 6 ) .
Selected Government of Canada Security Yields
6-mo. Treas . b i l l s
Spread
Canada

o?rj/

1959 - High
Low
1960 - High
Low
Sept. 7
11*
21
28
&/
Ji/
bill
c/
<y
e/
y
g/
h/

Long-term bonds
(20 year)
(35 year)
Spread
Spread
Canada
over
Canada
u.sjy
uTi/

Intermediate
bonds (8 y r . )
Spread
Canada
u!s?I/

6=21*
5.11
'5.33
1.99

0.65
-0=86

5.37
U.50
5.55
1*=09

1.11
0.21

2.32
2.36
1.99
2.05

-0.50
=-0.1*8
-0.86
-0.78

1*.09
1*017
U.H*
l*o09

0.1*1*
0.60
0.67
0.52

•

5.30
u.uu
5=1*2
U.63

1.22
0.85

5.05
U.73
5.28
l*o68

1.61
0.95

*
^

1*=63
1*.68
U.66
1*<,66

0.85
0=88
0.92
0„91

1*=68
l*o69
U.70
• Uo70

0.95
0.97
1.03
1.01

f
^
1

Average yield a t weekly tender on Thursday.
Spread between Canadian auction r a t e and composite market y i e l d of U.S.
on close of business Thursday.
Government of Canada 2 - 3 A per cent of June 1967-68.
Spread over U.S. Government 2-1/2 per cent of 1963-68.
Government of Canada 3-l/U per cent of October 3579.
Spread over U.S. Government 3 - l A per cent of 1978-83•
Government of Canada 3-3/2* per cent of Septentoer 1996 - March 1998.
Spread over U.S. Government of 1995.




1
«

Canada: Changes In Distribution of Holdings of Canadian
Government Direct and Guaranteed Securities
Imillions of Canadian dollars, par valueJ
Bank of Canada
T*eas.
bills
Bonds
J u l y 28
Aug. U
11
18
25
31
Sept, , 7
1U
21
28

Source:

+ 18
- 3
- 12
- 3
- 6
0
0
0
- 16
- 27

Government
Total

- 13
+ 11
+

$

+ 17
+ 1
0
0
0
0
- 2

+
+
+
+
+
+
+

2$
57
15
2
1
k
u
0
+ 3
- 1

Chartered bankw
Ireas.
bills
Bonds
+
+
+
+
+
+
+

U
12
8
21
2U
11
11
8
52
Ul

+
+
+
+
+
+
+
+

General public
savings Tteas.
bonds J f f l L Bonds
-

3
3U
1
10
2
9
18
11
3
13

-

+
-

6
5
5
5
6
5
h
2
7
5

- 37
0
+ 11
- 19
- Hi
- 10
+ 13
- 3
- 37
- Hi

Bank of Canada, Weekly Financial Statistics*

Y i e l d s on Notes of I n t e r m e d i a t e M a t u r i t y
( i n p e r c e n t p e r annum)
Bank term
notes
One y e a r
Two y e a r s
Three y e a r s
Four y e a r s
Five t o s i x years
Source:

Financial post.




3»75
U«00
U»2$
U»75
5<>00

T r u s t company
notes

•. •.

U»50
U<>50
U»75
U<»75
5»00

-

10
35
9
23
h
9
19
12
0
- 5