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*

F//V/1 /VC//1 IL

/

0/1

Week ending: August 10r 1977

LIBRARY
DtC 2 6 197§

Short-term interest rates have risen sharply in two
steps since April of this year, after remaining fairly stable
from January to April.
These rates rose sharply from April to
May and have been rising again in recent weeks.
The Federal
funds rate has risen 100 basis points from the average rate in
April, while the 3-month Treasury bill rate has risen 85 basis
points and the prime commercial paper rate 78 basis points.
The differential between the commercial bank prime rate
and other short-term interest rates has narrowed during the past
year, especially during recent periods of rising short-term
interest rates.
From July of last year through January, the
prime rate averaged more than 150 basis points above the prime
commercial paper rate in all but one month.
Since January of
this year that differential has narrowed.
In April the
differential averaged 138 basis points. Due to the lagged
adjustment of the prime rate to changes in short-term market
interest rates, the differential between the prime rate and the
prime commercial paper rate declined to 109 basis points on
average in May and has averaged 110 basis points so far in August.

Selected Short-Term Interest Rates
(Monthly Averages of Daily Rates)
July
1976

Jan.
1977

April
1977

May
1977

July
1977

Federal Funds

5.31%

4.61%

4.73%

5.35%

5.42%

5.73%

3-Month Treasury
Bills

5.23

4.62

4.54

4.96

5.19

5.39

Prime Commercial
Paper (4-6 Month) 5.67

4.74

4.87

5.35

5.41

5.65

7.25

6.25

6.25

6.44

6.75

6.75

Prime Rate

August*
1977

*


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

Averages of rates available through August 10, 1977.

Prepared by Federal Reserve Bank of St. Louis
Released: August 12, 1977

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
138

MILLIONS
136
AUG
134

132

130

128

126

124

2 16 30 M 28 11 25

8 22

6 20

3 17

1

15 29 12 26

JAN

9 23

9 23

6 20

4 18

1

15 29 13 27 10 21

FEB

1976

1977

LATEST DATA PLOTTED WEEK ENDING: AUGUST 10.

1977

THE MONETARY BASE CONSISTS OF MEMBER BANK RESERVES AT THE FEDERAL RESERVE BANKS AND CURRENCY
IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF COMMERCIAL BANKS). ADJUSTED
FOR RESERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE SAME TYPE OF DEPOSITS BETWEEN BANKS
WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY. THE MAJOR SOURCES OF THE MONETARY BASE ARE
FEDERAL RESERVE CREDIT AND THE GOLD STOCK. DATA ARE COMPUTED BY THIS BANK. A DETAILED DE­
SCRIPTION OF THE SOURCES AND USES OF THE MONETARY BASE IS AVAILABLE AS REPRINT NO. 31 FROM
THE FEDERAL RESERVE BANK OF ST. LOUIS.

MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
8/11/76

11/10/76

AVERAGE OF FOUR WEEKS ENDING:

1/12/77

2/9/77

3/9/77

4/13/77

5/11/77

8. 1
8.5
8.5
7. 1
7.9
8.4

8. 1
8.2
6.6
7.7
8.2

8.9
6.5
7.8
8.5

4.9
7.3
8.3

6.8
8.2

6/8/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/12/77
2/ 9/77
3/ 9/77
4/13/77
5/11/77
6/ 8/77
7/13/77
8/10/77

2

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

6.7
7. 1
7. 1
7.4
7.5
6.9
7.4
7.7

5.8
6. 1
6.8
7.0
6.3
7.0
7.4

1 1.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER is
ADJUSTED FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

MULTIPLIER

RATIO
JUN.

29

2.413
2.428
2.443
2.426

LATEST DATA PLOTTED WEEK ENDING: AUGUST 3.

1977
BILLIONS OF DOLLARS
124

BILLIONS OF DOLLARS
COMPOUNDED ANNUAL RATES
-----OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
" AUGUST 10. 1977 FROM
___THE FOUR WEEKS ENDING:

AUG.

11

1977
1977
1977
1977
1977
1976
1976

14.0
9.9
10.2
10.0
9.3
7.8
7.9

122
120
118
116
ADJUSTED FEDERAL RESERVE CREDIT
114
112

1977

110

MILLIONS

JUL.

108
106

2 16 30 M 28 11 25

8 22

6 20

3 17

1

15 29 12 26

JAN
1976

9 23

FEB

9 23

6 20

APR

4 16

1

15 29 13 27 10 24

MAY
1977

LATEST DATA PLOTTED WEEK ENDING: AUGUST 10. 1977
1/ RATIO OF MONEY STOCK CM1 ) / MONETARY BASE.
2/ FEDERAL RESERVE CREDIT CONSISTS OF FEDERAL RESERVE HOLDINGS OF SECURITIES, LOANS, FLOAT
AND OTHER ASSETS. ADJUSTED FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACTING TREASURY
DEPOSITS AT FEDERAL RESERVE BANKS FROM THIS SERIES, AND ADJUSTING THE SERIES FOR RE­
SERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE §AME TYPE OF DEPOSITS BETWEEN BANKS
WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY. DATA ARE COMPUTED BY THIS BANK.

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

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

3

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
790
785

BILLIONS

780

774.6
780. 1
780.7
785.9
786. 1
787. I

775
770
765
760
755
750
745
740

730
-3 725
720
715
710
705
-3 700
695
2

16 30 M 26 11 25

6 22

6 20

3 17

1

15 29 12 26

9 23

9 23

6 20

1

4 18

15 29 13 27 10 24

1977

1976
LATEST DATA PLOTTED WEEK ENDING: AUGUST 3,

1977

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

MONEY STOCK PLUS NET T ME DEPOSITS ( M 25
COMPOUNDED ANNUAL RATES OF CHANGE
8/4/76

11/3/76

AVERAGE OF FOUR WEEKS ENDING:

1/5/77

2/2/77

3/2/77

4/6/77

5/4/77

6/1/77

8. 1
9.0
9.7
8.9
9.0
10.2

9.2
10.2
9. 1
9.2
10.5

11.3
9.5
9.5
11.0

8.9
9. 1
11.2

7.7
10.8

13.2

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/
2/
3/
4/
5/
6/
7/
8/

4

5/77
2/77
2/77
6/77
4/77
1/77
6/77
3/77


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

12.4
11.8
11.2
11.1
11.3
10.7
10.6
11.1

11.5
10.6
10.5
10.8
10. 1
10.0
10.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

MONEY STOCK ( Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
335 -------------1---------- 1-----

BILLIONS OF DOLLARS
----- ---------- ------------- 335

BILLIONS
325.7
324.3
329.0
328.6

2 16 30 14 28 11 25

8 22

6 20

3 1T

OCT

NOV

1

IS 29 12 26

JAN

9 23

9 23

6 20

4 IS

APR

FEB

MAY

1

15 29 13 27 10 24

1976
LATEST DATA PLOTTED WEEK ENDING: AUGUST 3, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.6 RELEASE.
THE MONEY STOCK CONSISTS OF DEMAND DEPOSITS PLUS CURRENCY AND COIN HELD BY THE NONBANK PUBLIC.

MONEY STOCK (Ml )
COMPOUNDED ANNUAL RATES OF CHANGE
8/4/76

11/3/76

6. 1
5.4
4.9
5.4
6.7
6. 1
6.2
7.2

4.2
3.5
4.6
6.7
5.9
6.0
7.4

1/5/77

2/2/77

AVERAGE OF FOUR WEEKS ENDING;
3/2/77

4/6/77

13.2
9. 1
8.4
10.5

9. 4
8.3
11.0

5/4/77

6/1/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/
2/
3/
4/
5/
6/
7/
8/

5/77
2/77
2/77
6/77
4/77
1/77
6/77
3/77


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

1.5
4. 1
7.5
6. 1
6.2
8.0

5.3
9.4
7.2
7. 1
9.0

3.8
8.6

12.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

10.0

#
9.0

CORPORATE AAA BONDS

8.5

8.0

7.5

7.0

6.5

PRIME BANK
LOAN RATE

6.0

MUNICIPAL
BONDS**#

COMMERCIAL PAPER

5.5

5.0

J
4.0

A 18

2 16 50 13 27 10 24

AUG

8 22

5

IS

3 17 31

SEP
1976

M 28 11 25 11 25

JAN

FEB

3 22

8 20

3 17

1

15 29 12 26

MAR
1977

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: AUGUST 12. 1977

1977
JUNE

3
10
17
24
JULY
1
8
15
22
29
AUG.
5
12 *
19
26

90 DAY
CD'S #**:

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDS K9K

5.53
5.46
5.42
5.39
5.40
5.40
5.45
5.45
5.43
5.65
5.76

5.53
5.51
5.50
5.48
5.44
5.43
5.41
5.40
5.42
5.61
5.70

5.42
5.42
5.41
5.39
5.35
5.38
5.41
5.44
5.49
5.70
5.78

8.00
7.98
7.94
7.94
7.91
7.93
7.94
7.94
7.96
8.00
8.01

5.72
5.65
5.55
5.61
5.61
5.63
5.64
5.62
5.62
5.63
N.A.

* AVERAGES OF RATES AVAILABLE.
BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS. THURSDAY DATA,
see* SEVEN-DAY AVERAGES OF SECONDARY MARKET RATES FOR THE WEEK ENDING WEDNESDAY TWO DAYS
EARLIER THAN DATES SHOWN. CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
N.A. - NOT AVAILABLE

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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

8.0

INTEREST RATES
PERCENT

----- 8.0

—

3-5 YEAR
TREASURY SECURITIES

DISCOUNT RATE

5.5

5.5
___ t

v. ✓
\

FEDERAL FUNDS RATE

5.0

5.0

4.5

4.5

mm® wjry

4.0

4.0

Ss.
4 18

JUN

J_L

1_L

JUL

AUG

2

ill I I I I I 1-LJ I I I 1 ll 1.1 I I I I I 1 I I I I I I I I I l l l

16 30 13 2Y

10 24 8 22

SEP
1976

OCT

5 19

3 IT 31

NOV

DEC

14 28

JAN

11 25 11

FEB

MAR

25 8 22

APR

6 20

MAY
1977

-LL

3 17

1

JUN

JUL

15 29 12 26

AUG

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: AUGUST 12, 1977

1977
JUNE

3
10
17
24
JULY
1
8
15
22
29
AUG*
S
12 *
19
26

FEDERAL
FUNDS KK

3-MONTH
TREASURY
BILLS

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

5.36
5.31
5.37
5.43
5.43
5.35
5.34
5.36
5. 45
5.80
5.70

5.03
5.06
5.01
5.01
4.97
5.12
5. 16
5.21
5.27
5.35
5.44

5.42
5.43
5.40
5.41
5.39
5.46
5.51
5.60
5.70
5.83
5.89

6.71
6.68
6.56
6.54
6.49
6.60
6.62
6.69
6.77
6.86
6.87

7.52
7.48
7.41
7.41
7.38
7.43
7.43
7.46
7.49
7.53
7.53

* AVERAGES OF RATES AVAILABLE.

THAN MTE «’*'<•

S

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

co“’ure°BY *FEDaw-RESERVE “w * st

LOUIS.

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

NET TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
465

BILLIONS

460

452.2
454.4

455

456.9
458.2
458.5

450
445
440
435
430
425
420
415
410
405
400
395
390

2

16 30 14 28 11

25

8 22

6 20

3 If

1

15 29 12 26

JAN

9 23

9 23

FEB

6 20

APR

1976

1

15 29 13 2T

10 24

MAY
1977

LATEST DATA PLOTTED WEEK ENDING: AUGUST 3, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS. TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF $100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE,
8/4/76

11/3/76

AVERAGE OF FOUR WEEKS ENDING:

1/5/77

2/2/77

3/2/77

4/6/77

5/4/77

6/1/77

12.9
12.7
11.4
1 1.0
11.1
11.8

12.3
10.8
10.4
10.7
11.6

10.0
9.9
10.3
11.4

8.4
9.6
11.2

10.6
12.4

13.8

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/
2/
3/
4/
5/
6/
7/
8/

5/77
2/77
2/77
6/77
4/77
1/77
6/77
3/77

8

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

17.4
16.8
16.2
15.6
14.7
14.2
13.9
14. 1

17.3
16. 1
15.2
14.0
13.3
13. 1
13.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BiLLIONS OF DOLLARS

BILLIONS OF DOLLARS
250

BILLIONS
_

JUL
239.5

_

245

242.6
243.2

AUG

240

235

230

225

2 16 30 M 28 11 25

8 ZZ

6 20

3 17

1

15 29 12 26

JAN

9 23

9 23

6 20

1

4 18

IS 29 13

FEB

1976

1977

LATEST DATA PLOTTED WEEK ENDING: AUGUST 3.

1977

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE,
8/4/76

11/3/76

5.7
4.5
3.8
4.4
6.2
5.3
5.4
6.7

2.6
1.9
3.2
6. 1
4.9
5.0
6.8

1/5/77

2/2/77

AVERAGE OF FOUR WEEKS ENDING:
3/2/77

4/6/77

14.5
8.9
8.0
10.7

9.5
8.1
11.5

5/4/77

6/1/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/
2/
3/
4/
5/
6/
7/
8/

5/77
2/77
2/77
6/77
4/77
1/77
6/77
3/77


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

-1 . 1
2.3
6.9
5.0
5. 1
7.4

4.0
9.6
6.6
6.4
8.9

2.0
8.1

13.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
76
74
72

70
68
66
64
62
60
58
56
54
52

2 16 30 14 28 11

25

8 22

6 20

3 17

1

15 29 12 26

JAN

9 23

9 23

4

18

1

15 29 13 27 10 24

FEB
1977

1976
LATEST DATA PLOTTED WEEK ENDING: AUGUST 3, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN DENOMINATIONS OF *100,000 OR MORE BY LARGE
WEEKLY REPORTING COMMERCIAL BANKS.

1977
JUNE

1
8
15
22
29
JULY
6
13
20
27
AUG.
3
10
17
24
31

CERTIFICATES
CERTIFICATES
OF DEPOSIT
OF DEPOSIT
SEAS. ADJ.
NOT SEAS. ADJ.
62.3
62.6
62.8
62.9
63.7
63. 1
62.4
62.4
62.7
63.5

62.9
63.2
63.7
64.0
64.8
64.0
62.8
62.4
62.3
62.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

10


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

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS

IN THE NATION

AVERAGES OF DAILY FIGURES

(billions of dollars

billions of dollars

? n
977

JUL.

2 16 30 H 26 11 25

8 22

6 20

3 17

OCT

MILLIONS

6

NOV

1

15 29 12 26

9 23

9 23

6 20

1976

4 18

1

15 29 13 27 10 24

1977

LATEST DATA PLOTTED WEEK ENDING: AUGUST 10,

1977

BUSINESS LOANS
( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

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

_ COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
“THE FOUR WEEKS ENDING
- AUGUST 3, 1977 FROM
— THE FOUR WEEKS ENDING
JUN.

124

MILLIONS

1

— MAY

JUN. 29

— MAR
NOV

2 16 30 14 28 11 25 8 22
JUN
JUL
AUG
SEP

6 20
OCT

3 17
NOV

1 15 29 12 26 9
DEC
JAN
FEB

1976
LATEST DATA PLOTTED WEEK ENDING: AUGUST 3,


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

4 18

APR

1

15 29 13 27 10 24

MAY
1977

1977
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

r

MEMBER BANK DEPOSITS
SUBJECT TO RESERVE REQUIREMENTS
(CREDIT PROXY )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
580

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
AUGUST 3, 1977 FROM THE FOUR
WEEKS ENDING:
CREDIT
CREDIT
PROXY
ADJUSTED

3 570

E

1977

550

540

1977

2,

E

E

6,

560

CREDIT PROXY ADJUSTED

1/

3 530
CREDIT PROXY

520
gJ.LLl.QNS
CREDIT

CREDIT
PROXY

510

AP-JU&ISQ

551.5
550.9
550.7

2

16 30 14 26 11 23
JUL
AUG

8 22

6 20
OCT

3 17
NOV

2 26 9 29
JAN
FEB

1976
LATEST DATA PLOTTED WEEK ENDING: AUGUST 3,
CURRENT DATA APPEAR
1/

9 29

6 20
APR

4 18
MAY

1

551.8
555.6
554. 1
559.9

-E

490

558.7

15 29 13 27

10 24

1977
1977

IN THE BOARD OF GOVERNORS*

H.9 RELEASE.

INCLUDES MEMBER BANK DEPOSITS. BANK-RELATED COfciCRCIAL PAPER. EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

12

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

500

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