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a x\~r

Week ending: August 13, 1980
library
gj| 2 8 fflff The spread between the interest rate paid on newly issued
six-month Treasury bills and the ceiling interest rate paid on commercial
bank passbook accounts has decreased sharply in recent months. For
example, during the period from November 1979 to January 1980, the
spread between the six-month Treasury bill rate and the ceiling rate on
savings accounts averaged 660 basis points. During the February to April
period, this spread increased to 846 basis points. More recently,
however, the spread between these two interest rates has narrowed
sharply; from May to July, the spread between the six-rnonth
Treasury-bill rate and the passbook ceiling rate averaged 297 basis points.
Money market certificates (MMCs) are small time deposits
issued by commercial banks in denominations of $10,000 or more and with
maturities of six months. Because the maximum rate payable on MMCs
is linked to the yield on newly issued six-month Treasury bills, the rate
payable on MMCs fluctuates with market forces. In contrast, the
maximum rate paid on passbook deposits is fixed. As shown in the table
below, the growth patterns of savings and small time deposits are related
to changes in the rate spread. During those periods in which the spread
is quite large, small time deposits tend to increase more rapidly than
savings deposits. For instance, from the four weeks ending January 30 to
the four weeks ending April 30, savings decreased at a 29.4 percent rate
while small time deposits increased at a rapid 49.4 percent rate. In
contrast, over the more recent period, in which the spread between the
interest rate on six-month Treasury bills and the passbook ceiling rate
narrowed, savings increased at a 24.7 percent rate and small time
deposits grew at only a 2.4 percent rate.
Growth Rates of Commercial Banks' Savings
and Small Time Deposits
(seasonally adjusted, compounded annual rates of change)
Four-weeks ending
to
Four-weeks ending
10/31/79 - 1/30/80
1/30/80 - 4/30/80
4/30/80 - 7/30/80

Savings
deposits
-18.1 %
-29.4
24.7

Small time
deposits *
36.7 %
49.4
2.4

♦Time deposits issued by commercial banks in denominations of less
than $100,000.


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

Prepared by Federal Reserve Bank of St. Louis
Released: August 15, 1980

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES
BILLIONS OF DOLLARS

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS
160.2
160.5
160.7
161.4
162. 1
161.9

6 20

5

4 IS
NOV

19

2

IB

30

13 27

12

26

9

23

7

21

DEC

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13,

1980

THE ADJUSTED MONETARY BASE CONSISTS OF: ( 1 ) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS, (2) CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF
COUttalAL BA>#<S), AW (3) AN ADJUSTMENT FOR RESERVE REQUIREMENT RATIO CHANGES.
THE
MAJOR 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 BAW.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE. AVERAGE OF FOUR WEEKS ENDING:
8/15/79

11/14/79

1/16/80

2/13/80

3/12/80

4/16/80

5/M/80

6/11/80

7.4
5.8
5.6
6.2
6.7
7.5

6.9
6.3
6.8
7.3
8.1

4.1
5.5
6.4
7.6

6.8
7.6
8.8

8.7
10.0

10.6

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/16/80
2/13/80
3/12/80
4/16/80
5/M/80
6/11/80
7/16/80
•'8/1 a/80

9. 1
8.2
8.6
7.9
7.6
7.7
7.8
8.2

7.3
8.2
7. 1
6.8
7.0
7.3
7.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
v 'W.

h fSi
/i


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

ADJUSTED BANK RESERVES 1/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
52
1
1980
-

JUL.

r

ie
23

BILLIONS OF DOLLARS
52

BILLIONS
i—
48. 1
48.6
48.7
48.4

Al G.

-

48 9

V
K .Al nr Ai VA7
rV 'V V

•

~

zn

A

„/

/T

IV

■—■>/

J l/

-

-

Illl 111 -Li 11..
» M

4

JUN

JUL

18

I

111

1111

III

15 29 12 28 10 24

7 21

3 12

2 IS 30 13 27 12 2S 9 23

NOV

DEC

JAN

AUG

SEP
I 979

OCT

111 -LLLL -0.1.

LATEST DATA PLOTTED KEEK EWING! AUGUST 6,

FEB

111
MAR

INI

III!

iu

111

7 21

4 IS

2 IS 30 13

JUN

JUL

APR
MAY
1 980

27

AUG

I9S0

17 ADJUSTED MONETARY BASE LESS CURRENCY HELO BY THE NONBAT* PUBLIC I MESSER BAFK RESERVES AT
FEDERAL RESERVE BAMCS !♦! CURRENCY HELD BY COMMERCIAL RAM'S I.

ADJUSTED BANK RESERVES
COMPOUNDED ANNUAL RATES OF CHANGE
8/8/79

11/7/79

1/9/80

2/6/80

AVERAGE OF FOUR WEEKS ENDING:
3/5/80

4/9/80

5/7/80

6/4/80

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

9/80
6/80
5/80
9/80
7/80
4/80
9/80
6/80

8.9
6.6
7.6
7.2
5.8
5.5
5.7
5.6


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

6. 1
8.0
7.2
5.2
4.9
5. 1
5. 1

4.2
4.3
1 .9
2.1
3.0
3.3

8.8
4.3
3.9
4.5
4.7

0.0
0.8
2.4
3.0

-1.3
1.7
2.6

4.9
5. 1

6. 1

PREPARED BY FEDERAL RESERVE BATS' OF ST. LOUIS

3

4

MONEY STOCK (MIA)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

_ JUL

AUG.

371.2
372.3
374.6
373.0
373.3
381.5

5

JUN

ILL IONS OF DOLLARS
385

JUL

NOV

Ifl

2

16 30

DEC

13 27

FEB

12 20

9 23

7

21

MAR

1979
LATEST DATA PLOTTED WEEK ENDING: AUGUST 6, 1980
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS- H.6 RELEASE.
MIA CONS I STS OF CURRENCY AND COIN PLUS COMCRCIAL BAftC DEMAND DEPOSITS HELD BY THE NOfCANK
PUBLIC EXCLUDING THOSE HELD BY FOREIGN BANKS AND OFFICIAL INSTITUTIONS.

MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE
8/8/79

11/7/79

1/9/80

AVERAGE OF FOUR WEEKS ENDING:

2/6/80

3/5/80

4/9/80

1.6
-4.7
-2.5
0.4
2.4

-9.8
-5.6
-1 .2
1.4

-6.9
-0.3
2.8

5/7/80

6/4/80

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

9/80
6/80
5/80
9/80
7/80
4/80
9/80
6/80

5.4
4.7
5.2
3.9
1.5
1.8
2.8
3.6


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

4.5
5.3
3.3
-0.2
0.5
1.9
3. 1

4.6
1.5
-3.3
-1 .8
0.6
2.3

8.3
9.9

12.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( MlB )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
405 ---------- ,---------- ,-------- -

BILLIONS OF DOLLARS
----- ------------------------- 405

BILLIONS
— JUL

391.0
393^0
395.5
393.9
394.2
403. I

1 1 I I I I I
I

15 29

12

26

10 24

7 21

5

19

2

16 30

13

27

12 26

9 23

7 21

4

18

2

16 30

13 27

1980
LATEST DATA PLOTTED WEEK ENOING: AUGUST 6.

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
MIB CONSISTS OF MIA PLUS OTHER CHECKABLE DEPOSITS AT ALL DEPOSITARY INSTITUTIONS.

MONEY STOCK (MIB)
COMPOUNDED ANNUAL RATES OF CHANGE
8/8/79

1I/7/79

1/9/80

2/6/80

AVERAGE OF FOUR WEEKS ENDING:
3/5/80

4/9/80

5/7/80

6/4/80

9.7
1 1.9

16. 1

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

9/80
6/80
5/80
9/80
7/80
4/80
9/80
6/80

6. 1
5.4
5.9
4.8
2.6
2.7
3.9
4.9


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

5.3
6.3
4.4
1 .2
1.5
3.3
4.7

5.5
2.7
-1.7
-0.8
2. 1
4.0

3.2
-2.8
-1 .4
2. 1
4.3

-7.7
-4.5
0.6
3.4

-6.3
1 .4
4.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

20.0

20.0
19.0

ME BANK
.OAN RATE

I A. 0

90 DAY CD’S

14.0

12.0

12.0
COMMERCIAL PAPER
I I .0
CORPORATE

Cl PAL
BONDS!

1

IS 29

13 27

10 24

5

19

2

IS 30

14 20

DEC

11

25

8 22

7 21

4

18

2

IS 30

13 27

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING. AUGUST 15,

JULY

AUG.

23

8 22

I960

90 DAY
CD’S

I960
JUNE

II

JAN

6
13
20

27
4

25
1
15 X
22
29

PRIME
COMMERCIAL
PAPER XXX

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

CORPORATE
Baa BONDS

MUNICIPAL
BONDS KX

8.92
8.34
8.25
8.41
8.70
8.53
8.70
8.50
8.93
9.29
9. 43

8.69
8.03
7.92
8.00
8.38
8.31
8.37
8.31
8.64
8.90
9. 13

8.68
8.06
8.08
8.33
8.66
8.58
8.55
8.44
8.97
9. 14
9.39

10.88
10.53
10.34
10.53
10.84
10.94
11.09
11.1!
11.33
11.44
11.56

12.92
12.82
12.60
12.48
12.66
12.61
12.66
12.65
12.70
12.97
13.02

7.67
7.55
7.88
7.95
8.03
8. 59
N. A.

* AVERAGES OF RATES AVAILABLF.
B0N0S’

N.A.

THURSDAY 0A7A-

NOT AVAILABLE


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

PREPARED BV FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
20.0

20.0

19.0
18.0

18.0

17.0

17.0

16.0

16.0

FEDERAL FUNDS RATE

15.0
14.0

14.0
13.0
TREASUI

12.0

12.0
DISCOUNT
RATE

I I .0

I 1.0
10.0

5-YEAR
TREASURY SECURITIES

9.0
8.0
7.0
6.0

Hill
SEP
1979

0
OCT

DEC

JAN

MAR

APR

JUN

JUL

1980

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: AUGUST 15.

1980
JUNE

6
13
20
27
JULY
4
1 1
18
25
AUG.
1
8
15 X

FEDERAL
FUNDS KK

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL KK*

1-YEAR
TREASURY
BILL

10.74
9.68
8.99
9.08
9.41
9.26
8.98
8.68
8.98
9.60
8.85

7.51
6.44
6.76
7.42
7.92
8.08
7.98
7.93
8.44
8.58
8.62

8. 17
6.94
6.66
7. 1 1
8. 10
8. 1 1
8. 1 1
7.91
8.28
8.87
8.89

7.91
7.23
7.30
7.65
7.86
7.91
7.93
7.94
8.43
8.61
8.93

5-YEAR
TREASURY
SECUR1T1ES
9.58
9.08
8.90
9.23
9.47
9.46
9.44
9.46
9.92
10. 12
10.47

1980

LONG-TERM
TREASURY
SECURITIES
10.08
9.64
9.45
9.74
10.05
10. 13
10. 16
10. 17
10.51
10.65
10.89

22
29

X AVERAGES OF RATES AVAILABLE.
XX SEVEN-DAY AVERAGES FOR WEEK END ING WEDNESDAY TWO DAYS EARL IER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
XXX NEW ISSUE RATE
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.
TREASURY BILL YIELDS ON DISCOUNT BASIS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

MULTIPLIERS!/
CURRENCY OF MONEY STOCK MEASURES v
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
2.9

i

i

1980

RATIO
2.9

MIA'
RATIO

JUL.

r

11

2.7

7

MONE'l

4
4

MULTI PLIERS

2.7

3

AU G.
2.6

2.6
MIB

2.5

/
2.4

___

2.A

41B
980

2.4{

______

~

RATI 9
2

•I
S|

i'-A
f:l!

1

JUL.

MIA

-4 U -

_

^
AUG.
6
2.48
si i i i i i i i i i i i i

LI 11

1 1 1 1

1 1 1 _U 1

LATEST DATA PLOTTED WEEK ENDING; AUGUST 6,

iiii

hi

111

1111 -in

111

;s
1111 _LLL

1980

BILLIONS OF DOLLARS
116 ---------- ■---------- 1--------

ILL IONS OF DOLLARS
—|------------------------ I 16

-

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
----- THE FOUR *EEKS ENDING
AUGUST 6, 1980 FROM
- THE FOUR WEEKS ENDING-.
-----JUN.
........
MAR.
-----FEB.

4,

1980
1980
1980
1980
1980

7,

9,
5,
6,

1979

12.7
11.4

10.5
8.7

9.2

CURRENCY

1990

BILLIONS

1111111111111111
I

15 29

2.5

12

26

10

24

5

19

2

16 30

13

FEB

27

12

26

23

7

21

MAR

1979
LATEST DATA PLOTTED WEEK ENDING: AUGUST 6,

9

1980
1980

1/ RATIO OF MONEY STOCK (MIA) OR (MIB) 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

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
280

259.8
260.8
262.8
260.7
260.7
268.2

ill 1 I 1 1 I
6 20

4

LB

I

IS 29

12 26 10 24

7 21

5

NOV

DEC

19

2

16 30

13 27

12

26

1979

9 23

7

21

4

18

2

1 6 30

13

27

1980

LATEST DATA PLOTTED WEEK ENDING: AUGUST 6,

1980

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

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE,
8/8/79

11/7/79

4.0
2.9
3.7
2. 1
-1.2
-0.8
0.4
1.3

3.3
4.5
1 .7
-3.1
-2.3
-0.5
0.9

1/9/80

2/6/80

AVERAGE OF FOUR WEEKS ENDING:
3/5/80

4/9/80

5/7/80

6/4/80

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

9/80
6/80
5/80
9/80
7/80
4/80
9/80
6/80


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

3.0
-1. 1
-7.6
-5.6
-2.6
-0.6

-0.4
-9.1
-6.4
-2.6
-0.3

-16.0
-10.6
-4.9
-1.9

-12.6
-4.0
-0.2

7.6
9.3

12.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

SAVINGS PLUS SMALL TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
470 [—
i---------- 1---------

ILL IONS OF DOLLARS
~|----------------------i 470

B.1LLIWS
455.9
458.5
459.6
460.8
462.2

AUG.

I

15 28

12 26

10 24

7 21

5

NOV

DEC

19

2

16 30

13 27

FEB

12 26

9 25

7 21

4

18

2

16 50

15 27

MAR

1979

1960

LATEST DATA PLOTTED WEEK ENDING: AUGUST 6,

I960

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 6100,000.

SAVINGS PLUS SMALL TIME DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE,
8/8/79

11/7/79

1/9/80

AVERAGE OF FOUR WEEKS ENDING:

2/6/60

3/5/80

4/9/80

5/7/80

6/4/80

8.9
9.4
8.9
9.7
10.4

1 1.7
10.3
10.9
1 1.5

8.9
10.4
11.2

10.2
1 1.3

13.2

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

9/80
6/80
5/80
9/80
7/80
4/80
9/80
6/80

8.7
8.4
7.9
8.5
8.7
8.6
9.0
9.4


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

8. 1
7.3
8.4
8.8
8.6
9. 1
9.6

5.6
8.2
8.8
8.5
9.3
9.9

PREPARED BY 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

uibms

-I I 11
5

JUN

JUL

NOV

IB

2

16 SO

LATEST DATA PLOTTED WEEK ENDING: AUGUST 13,

IS 27 12 26

FEB

DEC

0 23

7 21

MAR

1980

BUSINESS LOANS

(COMMERCIAL AND
BILLIONS OF DOLLARS
168
166
164
162
160
158
156
154
152
150
148
146
144

INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

-

“JUN.
“MAY
“APR.
- MAR.
- FEB.
- NOV.
AUG.

4,
7,
9,
5,
6,
7,
8.

1980
1980
1980
1980
1980
1979
1979

f\

A.

140

0

't

/

/

154

-

\r

-

-

-

-

1 98(

-

JUL.
-

!lll
6 20

111 Mill
4

18

I

1 1L

1111 MIL

IS 29 12 26 10 24

AUG

SEP
1979

OCT

1 1 1

1 1 1 1

5 19

2

DEC

LATEST DATA PLOTTED WEEK ENDING: AUGUST 6,


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

160

- 156
-

/

A/

-

162

-

158

-

164

-

4.1
-1.0
-3.1
-2.2
1.2
5.5
7.6

166

-

COMPOUNDED ANNUAL RA TES
—OF CHANGE, AVERAGE 0 F
“ THE FOUR iJlEEKS END ING
- AUGUST 6, 1980 FROM
- THE FOUR WEEKS END ING:

142

138

BILLIONS OF DOLLARS
168

16 30

JAN

111

■ ILL

13 27

FEB

12 26

MAR

1 1 1 1
0 23

hi

7 21

APR
MAY
1980

MILLIONS
2
158,666
9
158,635
16
158,310
23
158,848
30
159,085
6
160,570
1111111 ii 11

“
~
“
“
“
~
r

16 30 13 27

JUL

AUG

1980
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

152
150
148

12
LARGE TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

ILL IONS OF DOLLARS
208
206
204

202
200
198

180
178
176
174

1979
LATEST DATA PLOTTED WEEK ENDING-. AUGUST 6,

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF *100.000 OR MORE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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