View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

_jZ

RESEARCH LIBRARY
Federal fiesprve

JUuSisTii

4UG2 5 1986

lancial Data

August 21, 1986

The discount rate was reduced 50 basis points effective Thursday, August
21. The reduction was the fourth this year. The discount rate’s new level of
5.50 percent is the lowest since September 1977.
Although interest rates have declined substantially this year, the path to lower
rates has been erratic. For example, while the rate on three-month Treasury
bills declined 118 basis points between the end of 1985 and the week ending
April 18, rates on five-year and long-term Treasury securities fell by 174 and
204 basis points, respectively. The result was a narrowing of the spread between
short and long rates. Between mid-April and early June, short-term rates rose
by about 60 basis points, but rates on five-year and long-term Treasury securities
rose by about 120 basis points, returning the spreads between short and long
rates to near their levels at the end of 1985. Since early June, there has been
little change in the spreads, as rates on government securities of all maturities
have declined by similar amounts.
—Michael T. Belongia

THE
FEDERAL
A RESERVE
JZk RANK of

Mr ST. I1H IS

Digitized forViews expressed do not necessarily reflect official positions of the Federal Reserve System.
FRASER
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS
250 ----------1------------,----_
_

1986

BILLIONS OF DOLLARS
----- ----------------------- 250

BILLIONS

JUN.

— JUL.

243.6
244.9

— AUG.

246.5
246.1

5 19

13

5 17 J1

H 21 II 25

AUG

0 23

6 20

4

NOV

SEP

DEC

IS

I

13 29 12 26 12 26

FEB

9 23

7 21

4 16

MAY

MAR

JUN

2 16 30 13 27

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDING: AUGUST 13, 1986

BANK.

A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM THIS BANK?

RECENT DATA ARE PRELIMINARY.
ADJUSTED MONETARY BASE
’ ••''

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDING*
8/14/85
TO THE AVERAGE OF
TWO MAINTENANCE
PERIODS ENDING*
1/15/86
2/12/86
3/12/86
4/ 9/86
5/ 7/86
6/18/86
7/16/86
8/13/86

7.2
7.0
7.8
7.5
7.4
8.2
8.0
7.8


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

11/6/85

1/15/88

2/12/86

3/12/86

7.2
8.4
7.9
7.7
8.7
8.4
8. 1

9.5
8.2
7.8
9.2
8.7
8.2

9.1
8.3
9.8
9.1
8.6

6.1
9.0
8.3
7.8

4/9/86

5/7/86

10.4
9. 1
8.3

10. 1
8.8

6/18/36

5.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

•

MONEY STOCK ( Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
690

660

674.2
673.6
677.7
677.4
679.9
684.9

670
660
650

640

630

620

610
600

I I I I

I I I I
4

OCT

18

2

16 30

NOV

13 27

JAN

10 24

10 24

7

21

5

10

2

16 30

14 28

II

2S

FEB

LATEST DATA PLOTTED WEEK ENDING: AUGUST II, 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 l Ml )
COMPOUNDED ANNUAL RATES OF CHANGE

AVERAGE OF FOUR WEEKS ENDING:

8/12/85

1 I/I 1/85

1/13/86

2/10/86

3/10/86

4/14/86

5/12/86

11.4
9.5
9.9
10.6
1 1 .6
12.8
12.8
13.4

7.9
9.0
10.2
11.8
13.4
13.4
14. 1

5.9
9. 1
1 1 .8
14.2
13.9
14.8

13.6
15.8
17.9
16.7
17.3

17.3
19.5
17.7
18.2

22.9
19.0
19.3

18.1
18.8

6/9/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/13/86
2/10/86
3/10/86
4/14/86
5/12/86
6/ 9/86
7/14/86
8/11/86


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

16.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4

MONEY MULTIPLIERi/
CURRENCY AVERAGES OF DAILY FIGURES
COMPONENT OF MONEY STOCK

v

SEASONALLY ADJUSTED
2.9

1986
JUN.

2
16
30
14
28
I)

JUL.
AUG.

RATIO
2.706
2.742
2.722
2.745
2.740
2.774

2.8

Ml MULTIPLIER

2.6

3 17

JUN

I

15 29 12 26

JUL

AUG

S 23

SEP
1985

7 21

4

OCT

NOV

18

2 16 30 IS 27 10 24 10 24

DEC

JAN

FEB

MAR

7 21

S

10

APR MAY
1988

2 16 30 14 28

JUN

JUL

II

25

0

AUG

LATEST DATA PLOTTED TWO WEEKS ENDINGi AUGUST II, 1086
BILLIONS OF DOLLARS
180 ---------- 1------------- 1---------- 1-------------

BILLIONS OF DOLLARS
180

“ COMPOUNDED ANNUAL RAT ES
_
_
AVERAGE OF
178 r OF CHANGE.weeks END INC
the four
- AUGUST 11. 1936 FROM
THE FOUR WEEKS END INC *
176
JUN.
9, 1986
6.4
- MAY
12, 1986
7.0
APR.
14, 1986
7.2
174 —MAR.
10, 1986
7.0
FEB.
10, 1986
6.7
NOV.
11, 1985
7.0
.AUG.
12. 1985
7.3
172

178
-

176
-

174
CURRENCY
-

172

-

-

-

-

170

170

168

168

L986

-

166

B

ILL 10.

-

14
21
28

-

164

iLLL 1 1 1 1
3
JUN

1 1 1

15 20 12 26

JUL

AUG

1 1 1 1 _LLL 1 1 1
0 23

SEP
1985

7 21

4 18

OCT

NOV

1111 JXL
16 30

DEC

13 27

JAN

1 1 1 1
10 24

FEB

10 24

MAR

177.1
177.6
177.9
.
4
178.3
—
11
178.7
Li 1.1.1 1 1 1 1 1 1 1,1.1
1 1 1 JJJJ
21

3 18

APR MAY
1986

16 30 14 28

JUN

JUL

11

23

AUG

LATEST DATA PLOTTED WEEK ENDING* AUGUST 11. 1986
1/

RATIO OF MONEY STOCK (Mi ) TO ADJUSTED MONETARY BASE

2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

166
164

TOTAL CHECKABLE DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS of dollars
-=3 510

1986

BILL I ONS
490.7
490.2
493.7
492.8
495.2

AUG.

I I I I
I

15 29

I I I I
12 26

9 23

7

21

OCT

4

18

2

IB 30

NOV

13

27

JAN

'0 24

7 21

5

APR

10 24

FEB

MAY

19

2

IB 30

14

28

JUL

11

25

AUG

LATEST DATA PLOTTED WEEK ENDING*. AUGUST II, 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:
8/12/85

11/11/85

1/13/86

2/10/86

3/10/86

4/14/86

5/12/86

13.2
10.2
10.9
1 1.8
13.3
14.9
15.0
15.7

7.9
9.7
11.4
13.6
16.0
15.9
16.8

5.0
9.5
13.4
16.7
16.5
17.6

16.6
19.6
22.5
20.9
21.5

21.4
24.6
22. 1
22.6

29.5
24.0
24.2

22.8
23.4

6/9/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/13/86
2/10/86
3/10/86
4/14/86
5/12/86
6/ 9/86
7/14/86
8/11/86


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

19.7

PREPARED BY FEDERAL RESERVE BANK OF ST.

5

LOUIS

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT

PERCENT
—i 12.0

BONDS

PRIME
LOAN RATE

MUNICIPAL

90 DAY

5 19

JUN

2 16 30 13 27 II

JUL

SEP

26

22

6 20

3 17 31

OCT

14 28 14 28 11

FE8

MAR

APR

25

9 23

6 20

-*

JUN

JUL

18

1

!5 2©

LATEST DATA PLOTTED ARE AVERAGES OP RATES AVAILABLE FOR THE WEEK ENDING: AUGUST 22, 1986.

1986
JUNE

6
13
20
27
JULY A
11
18
25
AUG.
1
8
15
22 K
29

90 DAY
CD'S

30--DAY
COMMERCIAL
PAPER

90-DAY
BANKERS'
ACCEPTANCES

CORPORATE

6.83
6.81
6.68
6.62
6.51
6.43
6.33
6.31
6.29
6.21
6.03
5.93

6.83
6.82
6.7 8
6.74
6.71
6.59
6.34
6.28
6.28
6.26
6. 17
6. 10

6.76
6.65
6.55
6.54
6.39
6.33
6.21
6. 17
6.17
6.08
5,94
5.83

9.29
9. 19
9.08
9.01
8.93
8.89
8.84
8.86
8.88
8.85
8.74
8.67

AAA bonds

CORPORATE
Baa BONDS
10.47
10.43
10.29
10.20
10. 15
10. 14
10. 10
10. 17
10.28
10.29
10.26
10. 14

MUNICIPAL
BONDS »
7.97
8.08
7.82
7. 59
7.51
7.45
7.45
7.60
7.54
7.53
7.33
N.A.

^RA&T^A0® JvAILMLE "* 30*"D °F •O'"*"5" H '5 *"■’
** BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA
N.A. - NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BAW< OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT

PERCENT
—] II.0

INDS RATE

DISCOUNT RATE

JUN

JUL

SEP

OCT

* **
NOV

* 10 3 17 31 14 28 '4
DEC JAN
FEB MAR

" » « 23 8 20 4 18
APR
MAY
JUN JJL

1 15 29
AUG

1966
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: AUGUST 22, 1936.

3-MONTH

FEDERAL
FUNDS K*
JUNE

6
13

20
27
JULY 4
1 1
18
25
AUG.
I
8
15

22

TREASURY
BILL

6.95

6.42
6.29

6.89
6.87

6.86

7.02
6.87
6.51
6.42
6.32
6.36
6.31
6.38

29

6.10
6.07
5.97
5.86
5.75
5.78
5.83
5.71
5.60
5.56

6-MONTH
TREASURY
BILL *M*

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

6.41

6.55
6.43

8.02

8.61
8.50
8.14
7.95
7.83
7.83
7.76
7.94
8.09

6,39
6. 18
6.13
5.96
5.85
5.80
5.77
5.89
5.73
5.60
5.65

6.21

6.14
5.98
5.92
5.83
5.89
5.91
5.81
5.67
5.58

7.83
7.45
7.33
7.21
7.13
6.91
7,01
7.10
7.06
6.87
6.77

8.01
7.73
7.60

irUHro®#®**&w%jaMW!Mara

simxfMmMm ““


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

»«
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8
COMMERCIAL BANK
SMALL TIME DEPOSITS^
LARGE TIME DEPOSITS*/
BILLIONS OF DOLLARS
415 ---------1-----------1--------- 1-----------”
1986
BILLIONS
-JUL.
_

7
14
21
28
4
AU G.
11

_

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

ILL IONS OF DOLLARS
415
-

381.7
381.0
379.7
378.7
377.5
376. (

-

395

i I i

SMALL TIME )EPOS TS

r
-

Illl 1111

in

mi

LI L in. 1 1 LL 111

1111

111

111

1 1 1

i ii i _LLL

xuJ

LATEST DATA PLOTTED WEEK ENDING; AUGUST 11, 1986
BILLIONS OF DOLLARS
295

BILLIONS OF DOLLARS
--------- 1------------1--------ISfife BIIL1C

In n In n

A

E

>

f

L

281.8
280.1
281.3
280.7
279.9
281.7

1

- JUL.
7
14
21
28
- AUG.
4
11

II

290

H
z

T T T T jT T T T J

275
LARGE TIME )EPOS TS
-

Illl 1 1 1
5 17

JUN

1

Illl
l. .in
15 29 12 26 9 25

JUL

AUG

SEP
1985

ILL 1 U- ILLL 1 1 1

111

1111

111

111

Illl

111

1 1 1

OCT

FEB

MAR

APR
11

MAY

JUN

JUL

1

AUG

NOV

DEC

JAN

LATEST DATA PLOTTED WEEK ENDING; AUGUST II, 1986
1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 6100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 6100,000 OR MORE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

275

COMMERCIAL BANK
TOTAL TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

lass.
-I

-JUL.

- AUG.
-

1

7

14
21
28
4
11

BILLIONS OF DOLLARS
810

TTTT

BILLIONS OF DOLLARS
810

—

aiudaws
—
795. 9
793.
794. 8
793 7
792. 2
794. 4

f'N

/ \

2

11111

J .I

\

A

.L I.

zr A

:

TTTT TTTT TTTT

/

_LL

res

U-

:

Ys
'■7
i i i
3 17

JUN

_____A

N. /
llil
1

1 1 1

M11 _LLL ..1.1 1
23
21
ia

JUL

AUG

SEP
3 985

OCT

NOV

m_L J.L.J
mi.30 IS 27 10 24 1111
2 16
10 24

DEC

JAN

FEB

MAR

111 -J-l 1
21
5 19

APR

MAY

i M i ...hi .ILL

Me SO 14 2S II 23
JUN
JUL
AUG

1986

LATEST DATA PLOTTED WEEK ENDING: AUGUST 11, 1986
TOTAL TIME IS THE SUM OF SAVINGS DEPOSITS, SMALL TIME DEPOSITS ANO LARGE TIME DEPOSITS.

TOTAL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING-.
8/12/85 11/11/85 1/13/86 2/10/S6 3/10/86 4/14/86 5/12/86
6/9/86
TO THE AVERAC E
OF FOUR WEEKS
ENDING-.
1/13/86
2/10/86
3/10/86
4/14/86
5/12/86
6/ 9/86
7/14/86
8/11/86

6.4
8.2
6.8
5.7
4.6
3.2
3.0
2.7


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

12. 1
8.7
6.4
4.7
2.7
2.5
2. 1

8.0
4.4
2.3
0.0
0.3
0. 1

-J .4
-2.3
-3.9
-2.7
-2.5

-2.6
-4.6
-3.0
-2.7

-6.7
-3.7
-3.1

-3.4
-2.8

0. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

780

10

BORROWINGS FROM FEDERAL RESERVE BANKS
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
6.0

BILLIONS OF DOLLARS
----- 1------------1--------- 6.0

--------------AUG.
TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDINGt AUGUST 20, 1986
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
2.5

ADJUSTMENT + SEASONAL
BORROWINGS

I I I I
5 19

9 17 31

14 28 11

AUG

SEP

25

9 23

6 20

4 16

NOV

I

12 26 12 26

DEC

15

FEB

0 29

7 21

4 18

2 16 90 IS 27

MAR

LATEST DATA PLOTTED WEEK ENDINGt AUGUST 20. 1986
1/ 63.767 FOR 11/27/85


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

PREPARED BY FEDERAL RESERVE BAM< OF ST. LOUIS

COMMERCIAL PAPER OF NONFINANCIAL COMPANIES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
g5 --------- ,------------,----JUL.

9

— AUG.

8

5 19

80,731
81,921
81,425
80,959

3 17 31

JUN

BILLIONS OF DOLLARS
----- ------------ ---------- 95

14 28 11

JUL

25

SEP

9 23

OCT

6 20

4

NOV

DEC

18

1

15 29 12 28

JAN

FEB

12 28

MAR

1985

9 23

7 21

4

IB

2

18 30

13 27

APR
MAY
1986

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13, 1986

BUSINESS LOANS

u

( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS 2/
SfcASUNALLY ADJUSTED

BILLIONS OF DOLLARS
262 ----------,------------,-----

BILLIONS OF DOLLARS
----- ------------ ----------262

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
- THE FOUR WEEKS ENDING
AUGUST 6. 1986 FROM
THE FOUR WEEKS ENDING:
— JUN.
MAY
APR.
MAR.
“ FEB.
NOV.
AUG.

4,
T,
9,
5,
5,
6,
7,

1986
1986
1986
1986
1986
1985
1985

-2.8
-3.2
-1.7
-0.9
-0.6
1.1
1.2

MILLIQNg
JUL.

2
258,559

AUG.
19

3 17 31

14
11
AUG 28 SEP 25

9 23

8 20

NOV

4

18

15 29 12 26 12 28

DEC

FEB

9 23

6

7 21

4

258,000
11 11 I 1 I I
18

2

16 30

13 27

MAR

LATEST DATA PLOTTED WEEK ENDING: AUGUST 6, 1986
1/ BUSINESS LOANS INCLUDE BANKERS* ACCEPTANCES AND COMuCRCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN 81.4 BILLION


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

PREPARED BY FFDERAL RESERVE BANK OF ST. LOUIS

11

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