Full text of U.S. Financial Data : September 25, 1986

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Federal Reserve Bank

I—LffiLFfnancial Data
SEP 2

9 1986

September 25, 1986

The spreads between interest rates on municipal bonds and other long-term
securities have narrowed substantially in recent months (see table on back page).
Over the five months following March of this year, the rate spreads between
municipal bonds and two of these long-term instruments—corporate Aaa bonds
and long-term Treasury securities—averaged about 145 and 45 basis points,
respectively. These spreads were considerably larger in the five months before
March, averaging about 200 and 155 basis points, respectively.
Changes in these interest rate spreads typically result from changes in risk
assessments, anticipated tax changes and other factors that affect the supply
of or the demand for specific types of long-term debt securities. The decline
in the municipal rate spreads described above coincided with the renewed
legislative efforts to enact major tax changes starting in March. Two prospec­
tive tax changes that would tend to reduce the demand for municipal bonds
relative to other long-term securities are the sizable reductions in marginal tax
rates and the eliminadon of federal tax exemptions for certain types of municipal
bonds.
—Courtenay C. Stone

(continued on back page)

mi
llDIKVl

ARESKKVH

XltANkof

arsr.unis

expressed do not necessarily reflect official positions of the Federal Reserve System.
Digitized forviews
FRASER
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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
252 ---------- 1---------- ,--------

BILLIONS OF DOLLARS
------------------------------- 252

245.6

— AUG.

13

SEP.

10

246.4
246. I

249.5

14 28 II

AUG

25

8 23

SEP

6 20

4

NOV

DEC

It

1

15 28 12 28 12 26

FEB

8 29

MAR

7 21

4 18

2 16 90 19 27 10 24

MAY

JUN

AUG

8 22

SEP

LATEST PLOTTED RESERVE MAINTENANCE PERIOD ENDING: SEPTEMBER 24, 1986
THE ADJUSTED MONETARY BASE IS THE SUM OF ftlHSXS ACpOUNTS OP FINANCIAL INSTITUTIONS AT FEDERAL
RESERVE BAM(S.
^JRRENCY_HELD BY THE PUBLIC AND IN THE VAULTS OF ALL
DEPOSI...... ......... J
THE MAJOR
------------------- MREOUjRElEMT RATIO CHANGES.
SOURCE
!VE CREDIT.
DATA
ARE'COMPUTED BY
_
PATA_ARE_COMPUTED
THIS
BANK
1ASE IS AVAILABLE FROM THIS BANK
RECENT DATA ARE PRELIMINARY.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF TWO MAINTENANCE PERIODS ENDING:
9/25/85

12/18/85

2/26/88

3/26/86

4/23/86

6.8
6.3
7.2
8.2
7.9
7.6
8.2

4.7
6.9
8.6
8.0
7.6
8.4

7.9
9.8
8.7
6. 1
9.0

12.5
9.9
8.9
9.8

5/21/86

6/18/86

7/30/86

TO THE AVERAGE OF
TWO MAINTENANCE
PERIODS ENDING:
2/26/86
3/26/66
4/23/86
5/21/86
6/18/86
7/30/86
8/27/86
9/24/86

7.6
7.2
6.9
7.4
8.0
7.8
7.6
8.1


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Federal Reserve Bank of St. Louis

9.4

8.2
9.5

6. I
8.3

9.6

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS

of

DOLLARS

BILLIONS
AUG.

685.0
687.9
688.5
*91 .3

5 19

2 16 SO 14 28

OCT

11

28

NOV

S 23

6 20

3 17

JAN

FEB

3 17 31

14 28 12

APR

LATEST DATA PLOTTED WEEK ENDINGt SEPTEMBER 15,

MAY

0 23

7 21

4 18

JUL

AUG

1

18 28 IS 27

1986

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS" H.6 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 ENDINGt
9/16/85

12/16/85

2/17/86

3/17/86

4/14/86

5/12/86

6/16/86

7/14/86

7.9
9. 1
9.6
10.9
12.5
12.4
13.2
13.7

7.4
8.7
1 1 .0
13.4
13. 1
14. 1
14.7

14.5
16.6
18.7
17.2
IT.9
18.2

17. 1
19.7
17.6
18.3
18.5

22.7
19.0
19.4
19.5

18.1
19.0
19.2

16.3
17.4

20.3

TO THE AVERAGE
OF FOUR WEEKS
ENOINGi
2/17/86
3/17/86
4/14/86
5/12/86
6/18/86
7/14/86
8/18/86
9/15/86


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PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

4
MONEY MULTIPLIER^
CURRENCY COMPONENT OF MONEY STOCK v
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

1966
JUN.
JUL.
AUG.
SEP.

30
14
28
II
25

RATIO

RATIO
2.722
2.745
2.750
2.774
2.777
‘2.785
Ml MULT I PL I

12 26

9 25

AUG

SEP

7 21

4 18

OCT

NOV

2

18 SO 15 27

DEC

JAN

10 24 10 24

FEB

MAR

7 21

S

APR

MAY

10

1985

2

18 SO 14 28 11

JUN
1986

JUL

25

8 22

AUG

SEP

6 20

OCT

LATEST DATA PLOTTED TWO WEEKS ENDING*. SEPTEMBER 8, 1988
BILLIONS OF DOLLARS
182 ---------- ,------------- ,------

LLIONS OF DOLLARS
1------------- ----------- 182

COMPOUNDED ANNUAL RATES
___OF CHANGE. AVERAGE OF
THE FOUR JHEEKS ENDING

JUL.
JUN.
MAY
.
.
.

14,
1
1
14,
17,
16,

1
CURRENCY

1986
1986
1985

1986
AUG.

BJLLIQNS

11

178.7
179.0
179.4
179.8

1111111111 ii 1111
5 10

2 18 SO 14 28 II

OCT

28

NOV

0 23

8 20

3 17

JAN

FEB

3 17 SI

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 15,

14 28 12

APR

MAY

0 23

7 21

4 18

JUL

AUG

I

15 20 19 27

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

520

499.9
502.4
502.7

= 510

■= 500

= 490

= 470

= 460

= 450

■= 440

= 430

5 IB

2

10 SO

14 20 !1
OCT
NOV

0 23

0 20

3 17

JAN

FEB

3 17 31

14 20 12 20

B 23

7 21

4

10

1

10 20 13 27

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 15. 1986
DEPOSl?ORYKfNk?lTUT?ONSS 18 THE 8UM ^ DEMAND DEP0SITS AND OTHER CHECKABLE DEPOSITS AT ALL

TOTAL CHECKABLE DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
9/16/85

12/16/85

2/17/86

3/17/86

4/14/86

5/12/86

6/16/86

7/14/86

8.2
9.6
10.6
12.4
14.6
14.5
15.6
16.3

7.3
9.3
12.4
15.7
15.4
16.8
17.6

17.7
20.6
23.5
21.5
22.2
22.6

21.2
24.8
22.0
22.7
23.1

29.0
24.0
24.3
24.4

22.8
23.6
23.9

19.8
21.3

25.0

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
2/17/86
3/17/86
4/14/86
5/12/68
6/16/86
7/14/86
8/18/86
9/15/86


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES

PERCENT
12.0 r—

PERCENT

—I 12.0

CORPORA
Aaa BON

PRIME BANK
LOAN RATE

COMMERCIAL
PAPER

2 16 SO IS 27

SEP

II

25

8 22

6 20

3

17 31

OCT

14 28 14 28
FEB

MAR

11

25

0

1

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING*.

1986
AUG.

1
6

15
22
29
SEP.
5
12
19
26 x
OCT.
3
10
17
24
31

90 DAY
CD'S

30-DAY
COMMERCIAL
PAPER

90-DAY
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

6.29
6.21
6.03
5.82
5.57
5.49
5.71
5.75
5.81

6.28
6.26
6. 17
5.95
5.64
5.59
5.72
5.78
5.79

6. 17
6.08
5.94
5.72
5.46
5.43
5.64
5.66
5.68

8.85
8.74
8.66
8.62
8.74
8.85
8.95
9.01

8°U&raM® a^M
** BOND BUYER'S AVERAGE

the board

13 29 12 26 10 24

APR

8.88

SEPTEMBER 26,

1986.

CORPORATE
Baa BONDS

MUNICIPAL
BONDS KX

10.28
10.29
10.26

7.54
7.53
7.33
7.06
6.93
7.00
7. 15
7. 1 4
N.A.

]2

10.
10.04
10.08
10.21
10.24
10.28

" 00VERN0RS’H-'5 RELEASE­

INDEX OF 20 MUNICIPAL BONDS,

THURSDAY DATA

N.A. - NOT AVAILABLE


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES

PERCENT
11.0 r—

PERCENT
—1 1 I .0

DISCOUNT RATE

3-MONTH
treasury bi

AUG

SEP

OCT
1985

NOV

DEC

JAN

FEB

MAR

APR

29

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK

1986
AUG.

1
8
15
22
29
SEP.
5
12
19
26 *
OCT.
3
10
17
24
31

6 20

MAY
JUN
1986

4

18

I

5 28

12 20

ENDING: SEPTEMBER 26,

10 24

1988.

FEDERAL
**

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL

1-YEAR
TREASURY
BILL

5-YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECUR1T1ES

6.32
6.36
6.31
6.38
5.87
5.83
5.82
5.88
5.81

5.83
5.71
5.60
5.48
5.27
5.21
5.20
5. 18
5.25

5.89
5.73
5.60
5.65
5.35
5. 17
5.35
5.34
5.39

5.91
5.81
5.67
5.52
5.36
5.35
5.46
5.48
5.48

7. 10
7.06
6.87
6.70
6.55
6.63
6.96
7.01
7.05

6.09
6.01
7.73
7.61
7.61
7.80
8. 1 1
8.24
8.24

funds

rewis.
*JHMMJC1^7oN^AVERAoiE?DISCOUNT*) ENDIfW ™ DAYS EARL,E" ™*<


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Federal Reserve Bank of St. Louis

SHOWN

PREPARED BY FEDERAL RESERVE BAFK OF ST. LOUIS

7

8
COMMERCIAL BANK
SMALL TIME DEPOSITS!/
LARGE TIME DEPOSITS 2/

"
_

iSfifi
AUG.

-----SE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
415

M IL .

BILLIONS OF DOLLARS
415 ----------1------------- 1---------- 1---------BILLIONS

11
IS
25

i

15

377.1
376.0
375.4
374.7
374.2
373.2

j

SMALL TIME DEPOS TS

305
-

-

385

-

-

375

i
1

-LLLL 111

111

Ml 1

111

■ILL 1 1 1 1 -LLL _LLL -LLLL 1 1 1

LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 15,

1 1 1 1

S
l.LL

1085
BILLIONS OF DOLLARS
------------------------------- 295

BILLIONS OF DOLLARS

IM

_LLL

BI LL.1.QNS.
280.7

8

282.0
281.7
280.8
281.1
LARGE TIME DEPOSITS

5 10

2 10 SO 14 20 II

OCT

NOV

0 23

6 20

3 17

JAN

FEB

3 17 31

LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 15,

14 28 12 26

APR

0 23

7 21

4 18

I

IS 20 IS 27

MAY

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 BAT* OF ST. LOUIS

COMMERCIAL BANK
TOTAL TIME DEPOSITS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
810

BILLIONS OF DOLLARS
----- ------------ ---------- 810

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

billions

793.6
794.0
794.9
794.5

5 19
AUG

luIlllLuj

2 16 30 14 26 II 25 0 23
SEP
OCT
NOV
DEC

6 20
JAN

3 II
FEB

1111
MAR

JUL

1985
LATEST DATA PLOTTED WEEK ENDING:
TOTAL TIME

SEPTEMBER 15,

IS THE SUM OF SAVINOS DEPOSITS.

6 1®
AUG

1

15 29 13 27

1986

SMALL TIME DEPOSITS AM) LARGE TIME DEPOSITS.

TOTAL TIME DEPOS1TS

TO THE AVERAGE
OF FOUR WEEKS
ENDING*.
2/17/86
3/17/86
4/M/86
5/12/86
6/16/86
7/14/86
8/18/86
9/15/86

COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS
ENDING.
9/16/85 12/18/85 2/17/86 3/17/86 4/14/88 8/12/86 6/18/88
7/14/86

9. 1
6.9
5.9
4.7
3.0
2.8
2.4
2.4


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

8.7
6.5
4.4
1.9
1.7
1.4
1.5

-2.3
-3.0
-4.5
-3.5
-3.0
-2.2

-2.2
-4.5
-3.2
-2.7
-1.9

-6.3
-3.3

-i'.O

-2.2

-1.7

-0.1
0.8

0.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

BORROWINGS FROM FEDERAL RESERVE BANKS
BILLIONS OF DOLLARS
B.O ---------- --------------------

BILLIONS Of DOLLARS
------ 1---------- 1------------- 6.0

AVERAGES OF DAILY FIGURES

ISM

933

SEP.

3

971

24

1094

1986

BILLIONS OF DOLLARS
------ 1---------- 1------------- S.5

BILLIONS OF DOLLARS

2.6

20

I? 'ft

TOTAL BORROWINGS

LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 24,

MILLIONS

*08.

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

ADJUSTMENT . SEASONAL
BORROWINGS

I I I I I I I
r 21
AUG

4 18
SEP

2 16 90 18 27 11 25 8 22
OCT
NOV
DEC
JAN

8 18
FEB

5 1«
MAR

2
A

MAY

JUN

AUG

SEP

1985
LATEST DATA PLOTTED WEEK END INOt SEPTEMBER 24,

1986

1/ S3.767 FOR 11/27/83


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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
95 ---------- ,---------- ,-------1986
AUG. 13
SEP.

7 21

BILLIONS OF DOLLARS

-------- ------- 95

MILLIONS
14,497
14,302
83,574

3

4 18

2

16 50 IS 27 11

OCT
1985

NOV

25

DEC

8 22

JAN

5 IS

8 19

FEB

MAR

2

16 50 14 28 11

APR

25

MAY
JUN
1986

9 25

JUL

6 20

5

AUG

SEP

17

I

15 29

LATEST DATA PLOTTED WEEK ENDlNGt SEPTEMBER 17, 1988

BUSINESS LOANS u
< COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS &
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
262

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
SEPTEMBER
1986
gtnuwLn 10,
iu,
isfoo FROM
rm
THE FOUR WEEKS ENDING:
— JUL. 9,
JUN. II,

1986
1986

-1 .0
«rn,

9,

~ MAR.. 12,
i £,
DEC. 11,
SEP. 11

i

1986
i 900
1965
258

4 18

2

16 50 13 27

NOV

11

DEC

25

6 22

5

19

FEB

5 19

2

16 30 14 28 11

MAR

LATEST DATA PLOTTED WEEK ENDlNGt SEPTEMBER 10,

MAY

25

JUN

AUG.

6

SEP.

3

257,799
257,035
257,736
258,846
259,457
257,977

111
I 1J I I I I I II I I
9 23 6 20 3 17
AUG

SEP

1966

1/ BUSINESS LOANS INCLUDE BANKERS* ACCEPTANCES AND COMMERCIAL PAPER.
2/ BANKS WITH DOMESTIC ASSETS GREATER THAN 81.4 BILLION


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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

254

Basis-Point Spread Between the Municipal Bond Rate
and Rates on Selected Securities
Corporate
Aaa bonds

Long-term
Treasury securities

October 1985
November 1985
December 1985
January 1986
February 1986

194
201
173
197
223

158
164
125
151
168

April 1986
May 1986
June 1986
July 1986
August 1986

159
155
126
137
151

43
53
41
38
54

Month


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