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federal

LIBRARY

Res

Bank

inancial Data
*>B> Q

e 1988

August 28, 1986

The prime rate has been reduced by 50 basis points on four occasions since
early March. In each instance, the reduction in the prime coincided with declines
in banks’ cost of acquiring loanable funds. The primary sources of loanable
funds for banks are certificates of deposits (CDs) and the federal funds market.
Over the period between mid-June 1985 and early March 1986, when the
prime rate held constant at 9.50 percent, the average spread between the prime
and the 90-day CD rate was about 170 basis points; the average prime-federal
funds rate spread was about 150 basis points. As the table below indicates, these
spreads had widened before each of the recent reductions in the prime rate.

Average Interest Rate Spreads Prior to
Recent Changes in the Prime Rate
(basis points)

Period1
March 7, 1986
April 21, 1986
July 11, 1986
August 26, 1986

Prime—90-day
CD rate spread

Prime—federal
funds rate spread

192
247
200
212

166
205
153
182

‘Data are averages of 10 business days prior to dates shown.
—Michael T. Belongia

IIIK

FEDERAL
A RESERVE
Ja BANK of
«r ST.IIH LS

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

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

BILLIONS OF DOLLARS
250

248
243.6
244.9
245.6
246.4

246

247.8

244

242

240

238
236

234
232

3 17 31

14 26 11

AUG

25

9 23

6 20

4 16

NOV

SEP

15 20 12 26 12 20

DEC

FEB

7 21

4 16

MAY

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDINGi AUGUST

JUN

2 16 50 13 27

AUG

10 24

SEP

27, 1986

INSTITUTIONS AT FEDERAL
ALL
DEPOSITORY INSTITUTIONS) AND AN ADJUSTMENT FOR RESERVE REQUIREMENT RATIO CHANGES.
SOURCE'OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
DATA ARE COMPUTED BY THIS
BANK.
A DETAILED DESCRIPTION OF THE ADJUSTED MONETARY BASE IS AVAILABLE FROM THIS BANK.
tue

ADJUSTED MONETARY BASE

9 25

MAR

IS THE SUM OF RESERVE ACCOUNTS OF FINANCIAL

ReIeRVE BANKS, CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS

RECENT DATA ARE PRELIMINARY.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDING:
8/28/85

11/20/85

1/29/86

2/26/86

3/26/86

11.0
8.8
9.4
9.4
9.4
8.9

4.7
6.9
7.7
8.0
7.6

7.9
8.5
8.7
8. 1

4/23/86

5/21/86

7/2/86

TO THE AVERAGE OF
TWO MAINTENANCE
PERIODS ENDING:
1/29/88
2/26/86
3/26/86
4/23/86
5/21/86
7/ 2/86
7/30/86
8/27/86

6.0
7.6
7.3
6.9
7.4
7.7
7.8
7.6


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

9.4
8.4
7.7
8.3
8.5
8.6
8.2

10.2
9.9
8.9

9.4

8.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
700 r=---------- 1---------- ,-----1986
JUL.

M

BILLIONS OF DOLLARS
----------------- -----------= 700

BILLIONS
673.6
677.7
677. 1
679.8
685.0

688. I

Mil
1

15 29 12 26

9 23

7 21

4 18

OCT

NOV

2 16 30 IS 27 10 24 10 24
JAN
FEB

LATEST DATA PLOTTED WEEK ENDING) AUGUST 18,

7 21

5 19

APR

MAY

2 16 30 14 28
JUL

11

25

8 22

AUG

1988

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.8 RELEASE.
®Y THE ***•*"< PUBL,C- DEMAND DEPOSITS, OTHER CHECKABLE

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE

AVERAGE OF FOUR WEEKS ENDING;

8/19/85

11/18/85

1/20/86

2/17/86

3/17/86

4/21/86

5/19/86

6/16/86

10.4
9.0
9.9
10.3
1 1 .8
12.7
12.8
13.4

7.8
9.6
10.4
12.6
13.9
13.8
14.4

8.5
10.2
13.6
15.3
15.0
15.6

14.3
17.6
18.7
17.5
17.9

18.4
19.7
18.0
18.3

23.9
19.9
19.8

17.5
18.2

16.3

TO THE AVERAGE
OF FOUR WEEKS
ENDING)
1/20/86
2/17/86
3/17/86
4/21/86
5/19/86
6/16/86
7/21/86
8/18/86


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4

MONEY MULTIPLIERi/
CURRENCY COMPONENT OF MONEY STOCK
x
x ,

1986
JUN.
JUL.
AUG.

v

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
2.9

RATIO

2
10
30
14
28
11

2.700
2.742
2.722
2.745
2.750
2.774

M! MULTIPLIER

2.6

1

15 2fl 12 26

0 23

7 21

4 18

OCT

NOV

2 18 30 13 27 10 24

JAN

10 24

LATEST DATA PLOTTED TWO WEEKS ENDING] AUGUST 11,

7 21

9 10

APR

FEB

MAY

2 19 30 14 28 I!

JUL

8 22

AUG

1986
BILLIONS OF DOLLARS
182

BILLIONS OF DOLLARS

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR #EEKS ENDING
AUGUST 18, 1986 FROM
THE FOUR WEEKS ENDING]
JUN.
MAY
APR.
MAR.
FEB.
NOV.
AUG.

16,
19,
21,
17
17,
18,
19,

1986
1986
1986
1986
1986
1985
1985

180

178

6.7
7.3
7.7
7.2
7.0
7.2
7.3

176
CURRENCY
174

172

170

iSflft

BILLIONS
177.1
177.6
177.9
178.2
178.7
179.0

168

166

111111111111
1

19 29 12 28

0 23

7 21

4

OCT

NOV

19

2 16 30 13 27

JAN

LATEST DATA PLOTTED WEEK ENDING*. AUGUST 18,

10 24 10 24

7 2!

3 10

APR

FEB

MAY

2

16 30

14 28 11

25

8 22

1986

1/ RATIO OF MONEY STOCK (Ml) 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

TOTAL CHECKABLE DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

=_ JUL.

BILLIONS OF DOLLARS
510

490.2
493.7
492.8
495.1
499.9
502.7

500

490

470

430

I I I I
1

15 20

12 26

0 23

7 21

4 18

OCT

NOV

2 16 30 15 27 10 24
JAN
FEB

10 24

7 21
APR

1985

5 10
MAY

2 16 30 14 28 II

JUL

25

8 22

AUG

1986

LATEST DATA PLOTTED WEEK ENDINGt

AUGUST 18,

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 ,
8/19/85

11/18/85

1/20/86

2/17/86

11.6
9.6
10.9
1 1.6
13.6
14.9
15. 1
15.7

7.9
10.5
11.8
14.8
16.5
16.6
17.3

8.8
1 1 .6
16.2
18.5
18.2
18.9

17.6
22. 1
23.5
22.0
22.2

AVERAGE OF FOUR WEEKS ENDING:

3/17/86

4/21/86

5/19/86

6/16/86

21.9
22.4

19.8

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/20/86
2/17/86
3/17/86
4/21/86
5/19/86
6/16/86
7/21/86
8/18/86


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

23.2
24.8
22.6
22.7

30.6
25.1
24.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT
12.0 i—

PERCENT
—|

5 19

JUl

2

15 30 15 27

AUG

11

SEP
OCT
1985

25

5 22

NOV

6 20

DEC

3 17 31

JAN

14

FEB

14 28 11

MAR

25

APR

8 23

MAY
1986

0 20

4 18

JUN

JUL

1

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. AUGUST 29,

1986
JULY

4
1 1
18
25
AUG.
1
8
15
22
29 *
SEP.
5
12
19
26

15 28 12 26

AUG

SEP

1986.

90 DAY
CD'S

30-DAY
COMMERCIAL
PAPER

90-DAY
BANKERS'
ACCEPTANCES

CORPORATE
AAA BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BOWS *X

6.51
6.43
6.33
6.31
6.29
6.21
6.03
5.82
5.62

6.71
6.59
6.34
6.28
6.28
6.26
6. 17
5.95
5.65

6.39
6.33
6.21
6. 17
6. 17
6.08
5.94
5.72
5.49

8.93
8.89
8.84
8.86
8.88
8.85
8.74
8.66
8.64

10. 15
10.14
10. 10
10.17
10.28
10.29
10.26
10.12
10.05

7.51
7.45
7.45
7.60
7.54
7.53
7.33
7.06
N. A.

NOTE.
CURRENTrDATA APPEAR.N THE BOARD OF GOVERNORS' H.15 RELEASE.
* AVERA
8BK BOND BUYER'S AVERAGE IWEX OF 20 MUNICIPAL BONDS, THURSDAY OATA
NOT AVAILABLE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

12.0

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT

PERCENT

11.0 i—

—i 11.0

DISCOUNT RATE

5 1®

2 ie 90 IS 27 II

SEP

25

8 22

0 20

OCT

5 17 51

14 28 14
FEB

MAR

11 25
APR

0 23

6 20
JUN

4 18
JUL

1

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDINGt AUGUST 29,

1986
JULY

AUG.

SEP.

4
1 1
18
25
1
8
15
22
29 K
5
12
19
26

15 2® 12 28

1960.

FEDERAL
FUNDS am

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL aam

l-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

7.02
6.87
8.51
6.42
6.32
6.56
6.31
6.38
5.87

5.97
5.86
5.75
5.78
5.83
5.71
5.60
5.48
5.29

5.96
5.85
5.80
5.77
5.89
5.73
5.60
5.65
5.35

5.98
5.92
5.83
5.89
5.91
5.81
5.67
5.52
5.40

7.21
7. 13
6.91
7.01
7. 10
7.06
6.87
6.70
6.64

7.83
7.83
7.76
7.94
8.09
8.01
7.73
7.61
7.63

NOTEt CURRENT DATA APPEAR IN THE BOARD ™,S BANK0” TREA^RYEb.LL EXCLUDING OnTJISCOUNTS.
* AVERAGE^TE^AVAILaIlE0^^"0 BY OF GOVERNORS* H.J5 RELEASEYI^S0^ LONG—TPRU trfa^iiry


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

EfOIN8 ™°0AYS EARUH'THAN MTE
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8
COMMERCIAL BANK
SMALL TIME DEPOSITS^
LARGE TIME DEPOSITS 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
415
ISM

BILLIONS OF DOLLARS
415

BJLL1-QNS
-

_

JUL.

381.0
379.7
378.7

11
18

.

405

14
21
28

376.8
375.8

405

SMALL TIME

)EPOS
1
1

II

585

-

-

- L - L l- * -

JJ_L

1111

111

111

n 11

_LLL -LLL

1 1 1 1

1 l l

III

1 1 1 1

-LLL .LLL

II 1 l!

LATEST DATA PLOTTED WEEK ENDING* AUGUST 18,
BILLIONS OF DOLLARS

ISM
JUL.

BILLIONS OF DOLLARS
295

BILLIONS.

14

279.3

290

280

LARGE TIME DEPOSITS

270

265

I

15 20 12 20

0 25

7 21
OCT

4 18
NOV

2 10 50 15 27 10 24

10 24

7 21

5 10

2 10 50 14 20 11 25
JUL
AUG

0 22

1985
LATEST DATA PLOTTED WEEK ENDING* AUGUST 18,

1986

1/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 8100,000
2/ TIME DEPOSITS ISSUED IN DENOMINATIONS OF 8100,000 OR MORE


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

COMMERCIAL BANK
TOTAL TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
810

r.

iaas.

-

JUL.

-

AUG.

—

iiii

-—1—
B.ILLI GblB

14
21
28
4

11

18

792.9
793.9
792.8
791.3
793.4
793.8

805

\
-

Lu. L j-

810

\

-

i

1111

/

TTTT

785

f

/

K
111!

/
.LLL _LLLL

115 29 12 28 0 23
JUL
AUG
SEP

1 1 1
7 21
OCT

111
4 18
NOV

111 i
111
111
IIII
2 16 50 19 27 10 24 10 24
DEC
JAN
FEB
MAR

111
7 21
APR

1985

IIII
1 II
111
2 16 90 14 28 II 29 8 22
JUN
JUL
AUG
SEP

1986

LATEST DATA PLOTTED WEEK ENDINGi AUGUST 18,
TOTAL TIME

111
5 10
MAY

T T T T T T T T T T T T M il T T T T

iiii

\ 7' Vn

1986

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

TOTAL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
8/19/85

11/18/85

1/20/86

2/17/86

3/17/86

4/21/86

5/19/86

6/16/86

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/20/86
2/17/86
3/17/86
4/21/86
5/19/86
6/18/86
7/21/86
8/18/86

7.4
8.5
6.6
5.6
4.3
3.2
2.9
2.6


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

12.2

8. 1
6.2
4. 1
2.5
2.2
1.8

4.5
2.7
0.4
-1 . 1
-0.7
-0.9

-2.1
-3.5
-4.4
-3.2
-3.0

-3. 1
-4.4
-3.0
-2.7

-7.0
-4.0
-3.5

-2.8
-2.5

-0.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

775

10

BORROWINGS FROM FEDERAL RESERVE BANKS
AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
6.0

BILLIONS OF DOLLARS

---- 1----- 1-----

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

6

6.0

705

TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDING: AUGUST 27,

1986

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

iSfife

MILLIONS
6

348

ADJUSTMENT + SEASONAL
BORROWINGS

3

17 SI

14 21 II 25

AUG

0 23

SEP

S 20

4 18

NOV

DEC

I

15 20 12

FEB

12 28

MAR

0 23

7 21

4 18

2

18 30 13 27 10 24

AUG

SEP

LATEST DATA PLOTTED WEEK ENDING: AUGUST 27. 1986
1/ 83.767 FOR 11/27/85


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

COMMERCIAL PAPER OF NONFINANCIAL COMPANIES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
95

JUL. 16
80,959

84,119
84,302

3 17 31

14 28 II 25
AUG
SEP

9 23

6 20
NOV

4 18
DEC

1

15 29 12 26 12 26
FEB
MAR

LATEST DATA PLOTTED WEEK ENDING*. AUGUST 20,

9 23

7 21

4 18

MAY

JUN

2 18 30 i 3 27
AUG

10 24
SEP

1986

BUSINESS LOANS
(COMMERCIAL AND

w

INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS 2/
BILLIONS OF DOLLARS

SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
ur unAiwt, fn vcrvPMje vr
THE FOUR WEEKS ENDING
AUUU3 I ID. IVOO rnVAM
THE FOUR WEEKS ENDING:

MAY

14,

1966

APR.
MAR.
FEB.
NOV.
AUG.

16,
12,
12,
13,
14,

1986
1986
1986
1965
1985

-3.2

256,559
257,546
257,293
AUG.

6
257,109

1.1.-111 1 l ( 111111
3 17 31

14 28

11

23

9 23

« 20
NOV

4 18
DEC

I

18

12 26 12 28
FED
MAR

9 23

7 2
MAY

4 18
JUN

2

16 30 13 27

10 24

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13, 1986
1/ BUSINESS LOANS INCLUDE BANKERS* ACCEPTANCES AND COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN 81.4 BILLION


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

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