Full text of U.S. Financial Data : April 10, 1986

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Research library
Federal Reserve Bank
—1

f:SrF irlancial Data

APR

1

5

1986

April 10, 1986

From their peaks of 14.81 percent and 12.54 percent in July 1984, the average
interest rates on both fixed-rate mortgages (FRMs) and adjustable-rate mor­
tgages (ARMs) have declined, by 429 basis points and 293 basis points, respec­
tively. This decline has narrowed the rate spread between the two types of
mortgages.
Interest rates on ARMs tend to be lower than those on FRMs because ARMs
shift the risk of interest rate variation from lender to borrower. Borrowers are
more willing to accept this risk when the spread between the two types of mor­
tgages is large, but they reduce their use of ARMs when the spread narrows.
As the table on the back page indicates, the FRM-ARM rate spread declined
from an average level of 197 basis points in 1984 to 91 basis points in March
1986. This has been accompanied by a 30 percentage-point reduction in the
ARM share of the mortgage market.
—Gary J. Santoni

(continued on back page)

THE
FEDERAL

A KKSKKW
XllANKot

|«r ST. liHlS

Views
expressed do not necessarily reflect official positions of the Federal Reserve System.

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Federal Reserve Bank of St. Louis

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
242

240

235. 1
237.8

238
239.3
240.2
236

234

232

230

228

226

224

222

220

19 27 19 27 10 24
FEB
MAR
APR

0 22

9 19

9 17 91 14 2« II 25
AUG
SEP
1985

9 29

9 20
NOV

4 18
DEC

I 15 29 12 28 12 28
FEB
MAR
1986

9 29

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDING* APRIL 9, 1986
THE ADJUSTED MONETARY BASE IS THE SUM OF RESERVE ACCOUNTS OF FINANCIAL INSTITUTIONS AT FEDERAL
---------------------------------------------------------~ ‘ *CIM
AT I ON l nUftRFNTY
CULATiON
(CURRENCYM>LD
HELDHY
BY THE PUBLIC AND ________
IN THE VAULTS OF ALL
____________ __________________ _______ .
____ _____ IIREMENT RATIO CHANGES.
THE MAJOR
DATA ARE COMPUTED BY THIS
OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM THIS BANK.
BANK.
RECENT DATA ARE PRELIMINARY.
ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDING
4/10/85

7/3/85

9/11/85

10/9/85

11/6/85

2/4/85

1/15/88

2/12/86

7.6
7.2
7.8
7.3
7.3
7.8
7.7

4.0
6.2
6.0
6.2
7.1
7.0

8. 1
7.1
7.0
8.0
7.8

7.6
7.4
8.4
8.1

6.2
7.8
7.6

9.5
8.6

9.4

TO THE AVERAGE OF
TWO MAINTENANCE
PERIODS ENDING*
9/11/85
10/ 9/85
11/ 6/85
12/ 4/85
1/15/86
2/12/86
3/12/86
4/ 9/86

9.7
8.6
8.2
8.5
8.0
7.9
8.3
8.2


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
650 rz--------1---------- 1--------

BILLIONS OF DOLLARS
------ ------------- -------- hi 650

634.2
632.0
637.7
638.5
640. 1

I I I I L 1.1.1
FEB

MAR

13 20 MAY
13 27 JUN
10 24

8 22

5 10

25
2 16 30 OCT
14 28 NOV
1

0 23

5 20
JAN

3 17
FEB

3 17 31

14 28

LATEST DATA PLOTTED WEEK ENDING. MARCH 31, 1986
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.B RELEASE.
Ml IS THE SUM OF CURRENCY HELD BY THE NONBANK PUBLIC, DEMAND DEPOSITS, OTHER CHECKABLE
DEPOSITS AND TRAVELERS CHECKS.

MONEY STOCK ( Ml )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
4/1/85

7/1/85

9/2/85

14.3
14.3
13.0
12.9
12.8
11.3
11.4
11 .7

14.4
12.0
12.1
12.1
10. 1
10.3
10.8

9.5
10.7
10.9
8.4
9.0
9.8

9/30/85 10/28/85

12/2/85 12/30/85

2/3/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
9/ 2/85
9/30/85
10/28/85
12/ 2/85
12/30/85
2/ 3/86
3/ 3/86
3/31/86


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Federal Reserve Bank of St. Louis

9.0
9.8
7.1
8.0
9.1

12.2
7.8
8.8
9.9

5.1
7.3
9.1

5.5
8.3

13.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4

MONEY MULTIPLIER^
CURRENCY COMPONENT OF MONEY STOCK 2/
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED

RATIO

1986
JAN.
FEB.
MAR.

11

FEB

RATIO

13
27
10
24
10
24

25 11

RATIO

2.670
2.669
2.642
2.653
2.659
2.671

25

S 22

MAR

Mt MULTIPLIER

6 20

3 17

MAY

JUN

I

15 20 12 26

0 23

7 21

4

OCT

NOV

16

2 16 30 13 27

JAN

10 24

10 24

FEB

LATEST DATA PLOTTED TWO WEEKS ENDING: MARCH 24, 1986
BILLIONS OF DOLLARS
176 ---------- 1---------- 1---------

BILLIONS OF DOLLARS
------------------------------- 176

COMPOUNDED ANNUAL RATES
—OF CHANGE, AVERAGE OF
.
THE FOUR WEEKS ENDING
- MARCH 31, 1986 FROM
THE FOUR
WEEKSENDING:
FEB.
3,
DEC. 30,
DEC.
2,
— OCT. 28,
_ SEP. 30,
JUL.
1,
— APR.
1,

1986
1985
1985
1985
1985
1985
1985

-

7.4
8.7
7.8
7.9
7.6
7.9

CURRENCY
7.9.

BILLIONS
173.2
172.7
173.6
173.8
174.2
174.6
1111111111111111
1
FEB

15 20 13 27

10 24

8 22

5 10

2 16 30 14 28 II

25

MAR

LATEST DATA PLOTTED WEEK ENDING: MARCH 31,

0 23

6 20
JAN

3 17
FEB

3 17 31

14 26

1986

1/ RATIO OF MONEY STOCK (Ml ) TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

TOTAL CHECKABLE DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS of dollars

455.0
453.3
458. 1
458.7
459.1
459.5

4 18
FEB

A 18
MAR

1

15 29 MAY
13 27 JUN
10 24

8 22

5 19

2 16 30 OCT
14 28 NOV
11 25

9 23

6 20
JAN

1985

3 17
FEB

3 17 31

14 28

1986

LATEST DATA PLOTTED WEEK ENDINGt MARCH 31,

1986

TOTAL CHECKABLE DEPOSITS IS THE SUM OF DEMAND DEPOSITS AND OTHER CHECKABLE DEPOSITS AT ALL
DEPOSITORY INSTITUTIONS.

TOTAL CHECKABLE DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
4/1/85

7/1/85

9/2/85

16.5
16.8
15.0
14.9
14.9
12.6
12.8
13.2

16.9
13.7
13.9
14.0
10.9
11.4
12.0

11 .0
12.4
12.8
8.9
9.8
10.8

9/30/85 10/28/85

12/2/85 12/30/85

2/3/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
9/ 2/85
9/30/85
10/28/85
12/ 2/85
12/30/85
2/ 3/86
3/ 3/86
3/31/86


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Federal Reserve Bank of St. Louis

9.7
11.1
6.8
8.3
9.7

14.5
7.6
9.3
10.7

4.0
7.3
9.6

4.3
8.2

16.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT
14.0 r—

PERCENT

PRIME
LOAN

municipal

15

FEB

t

IS 25 12 20 10 24

MAR

APR

MAY

7 21

5 10

JUN

JUL
1885

2 10 90 13 27

AUG

SEP

11

OCT

23

0 22

NOV

0 20

DEC

3 17 31

JAN

14 20 14 20 11 25

FEB
MAR
1986

APR

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE REEK ENDING! APRIL II, 1986.

1086
FEB.

MAR.

APR.

7
14
21
28
7
14
21
28
4
11 X
18
25

90 DAY
CD'S

30-DAY
COMMERCIAL
PAPER

90-DAY
BANKERS*
ACCEPTANCES

CORPORATE
AAA BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS 3HK

7.73
7.74
7.67
7.62
7.46
7. 19
7. 17
7. 16
7.02
6.68

7.70
7.73
7.69
7.66
7.52
7.20
7.22
7.25
7.22
6.90

7.59
7.62
7.52
7.52
7.29
7.08
7.05
7.03
6.82
6.52

9.90
9.84
9.64
9.29
9.06
8.98
9.03
8.94
8.74
8.79

11.29
11.25
11.10
10.82
10.59
10.50
10.50
10.42
10.28
10.27

7.73
7.62
7.44
6.98
6.88
6.89
7.34
7.21
7.15
N.A.

SPMTS £□&!£T*B0ARD00VERWWS-H-’5 RELEASE« BOND BUYER'S AVERAGE lt®EX OF 20 MUNICIPAL BONDS. THURSDAY DATA
N.A. - NOT AVAILABLE


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BAM< OF ST. LOUIS

w ^...........

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT
13.0

PERCENT

TREASURY SECURITIES

DISCOUNT RATE

I I I I I I I I
FEB

MAR

APR

MAY

JUN

JUL

I I I

2 !« 30 IS 27 11 25 8 22
AUG
SEP
OCT
NOV

6 20
DEC

I

I I I I

3 17 31
JAN

14 28 14 28 11
FEB

MAR

APR

1985
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING:

1986
FEB.

7
M
21
28
MAR.
7
14
21
28
APR.
4
11 *
18
25

APRIL 11,

1986.

FEDERAL
FUNDS 808

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL 88188

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

7.97
7.85
7.84
7.82
7.89
7.52
7.47
7.25
7.39
7.05

7.06
7. 11
7.05
7.04
6.79
6.59
6.49
6.39
6.31
6. 13

7.06
7.23
7.03
7.00
6.87
6.54
6.55
6.43
6.32
6. 17

7.12
7. 17
7. 1 1
7.02
6.76
6.59
6.57
6.46
6.27
6.08

8.52
8.44
8.32
8.06
7.66
7.40
7.46
7.36
7.22
7. 13

9.46
9.34
9.07
8.62
8.35
8.17
8.20
8.01
7.66
7.66


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Federal Reserve Bank of St. Louis

ENDING ™° °AYS EARLIE* THAN

mra unuv.

SHOWN

PREPARED BY FEDERAL RESERVE BALK OF ST.

7

LOUIS

8
COMMERCIAL BANK
SMALL TIME DEPOSITS^
LARGE TIME DEPOSITS*/
BILLIONS OF DOLLARS
415

it? 3
10
17

if

388.5
388.8
389.0
389.0

1 -1 1 -

: GSR:

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

" M il

BILLIONS OF DOLLARS
---------- 1---------- 1------------- 1-------- ~
~
1986
BILLIONS

1

-

395

SMALL TIME )EPOS1T S
-

385

M IT

■

375

i

i i

af

S

111

■ 111 _LLL M-L

INI

J.LL

1111

1 1 1

111

1111

1 1 1

lii-i. 1 1 1

111

LATEST DATA PLOTTED WEEK ENDING: MARCH 31. 1986
BILLIONS OF DOLLARS
300

BILLIONS OF DOLLARS
300 — ----- r------- 1--------- 1----- 295

290

=

1986 BILLIONS
— FEB. 24 289.6
Z MAR. 3 287.9
10 286.6
24 286.8
31 286.5
-

295

z

L

285

z
280

LARGE TIME )EPOS1TS

-

\

290

z
285

Z

7^

z

275

280

275

z
270

270

265

260

7
i7m
FEB

7

z
265

z
111

1111

111

1 1 1

MAR

APR

MAY

JUN

11 ii _LLL- 1111
JUL

AUG

SEP

111 J_LL 1 1 1 L 1 1 1
OCT

NOV

1985

DEC

JAN

II 1J
1 1 L 1111
3 17 3 17 1 14 2

FEB

MAR
1986

LATEST DATA PLOTTED WEEK ENDING: MARCH 91. 1986
1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 8100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 8100,000 OR MORE


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

260

COMMERCIAL BANK
TOTAL TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

ILL IONS OF DOLLARS

ILL IONS OF DOLLARS

HO ----- ----- 1---------- ,--------

“I--------------- ------------

_ FEB.

24

803. 1

800.9
800.7
801.7

I I I I I I I I
FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

20
OCT

NOV

JAN

1985
LATEST DATA PLOTTED WEEK ENDINGt MARCH 31,
----- ------------

TOTAL TIME

mr»nwn -J I ,

3 17

3 17 31

14 26

FEB

1986
1900

IS THE SUM OF SAVINGS OEPOSITS, SMALL TIME DEPOSITS AND LARGE TIME DEPOSITS.

TOTAL TIME DEPOS1TS

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
9/ 2/85
9/30/85
10/28/85
12/ 2/85
12/30/85
2/ 3/86
3/ 3/86
3/31/86

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS
ENDING:
4/1/85
7/1/85
9/2/85 9/30/85 10/28/85
2/2/85 12/30/85
2/3/86

-0.2
0.6
1 . 1
1.7
2. 1
4.2
4.0
3.4


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0.3
1.3
2.2
2.7
5.5
5.2
4.2

5.0
5. 1
5.3
8.7
7.7
6. 1

5.0
5.3
9.5
8.2
6.3

5.5
10.9
9.0
6.5

10!a
6.9

12.5
7.2

-0.7

PREPARED BV FEDERAL RESERVE BANK OF ST. LOUIS

810

10

BORROWINGS FROM FEDERAL RESERVE BANKS
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
8.0

BILLIONS OF DOLLARS

---------- ----

TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDING. APRIL 0, I
BILLIONS OF DOLLARS
------ ----------— 2.5

BILLIONS OF DOLLARS
2.5 ---------- 1---------- 1--------

ADJUSTMENT + SEASONALBORROWINGS

e 20

6 20

9 17

I

FEB

MAR

APR

MAY

18 20 12 20 10 24

JUN

JUL

AUG

SEP

NOV

DEC

less
LATEST BATA PLOTTED WEEK EWING. APRIL 0,

1986

1/ S3.767 FOR I 1/27/85


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MMDAS,

MMMFS AND SUPER NOWS

(BILLIONS OF DOLLARS, NOT SEASONALLY ADJUSTED)

MMDAs 1/
February

March

3
10
17
24
3
10
17
24
31

MMMFs 2/

*335.6
336.6
336.7
337.7
338.3
339.6
340.3
340.5
341.0

Super NOWs 3/

*248.3
248.3
248.1
248.8
249.9
252.6
255.5
258.7
260.5

*66.0
67.5
66.9
66.8
67.5
69.0
68.5
68.1
68.6

1/ Money market deposit accounts at commercial banks
2/ Total money market mutual fund balances
3/ NOW accounts at all depository Institutions eligible
to earn more than 5.25
percent

BUSINESS LOANS u
,

( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS 2/
BILLIONS OF DOLLARS
265 ---------- 1---------- ,--------

SEASONALLY ADJUSTED BY THIS BANK
DOLLARS

- CONPOUNOED ANNUAL RATES
- ,™E
*EEKSRENDINO

• 69 §
“ DEC. 25.

| VOO
1985

.
SEP.
wwr.
- JUN.
uw.
MAR.

I uOj
1985
IvOo
1985

CO,
25,
co,
28.
cd,
27,

ivod

1985

FEB. 19

259,385
FEB

MAR

APR

AUG

10

SEP

NOV

S 10

2 10 90

DEC

LATEST DATA PLOTTED WEEK ENDING. MARCH 28, 1
1/ BUSINESS LOANS INCLUDE BANKERS* ACCEPTANCES AND COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN *1.4 BILLION


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST, LOUIS

11

Spread Between Rates on FRMs and ARMs
and the ARM Share of New Mortgages
ARMs as percent of
Period
1984
1985
March 19862

Spread1
197
189
91

total new mortgages
61%
50
31

‘Average difference in basis points between committment interest rates on FRMs and ARMs for loans at
90 percent of sales price
‘Preliminary


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Federal Reserve Bank of St. Louis