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S. FinflnCIfll DAT ft_ _ _ _ _ _ _ _ _ _ _
Week ending August 23, 1967

INTEREST RATES (Pages 10, 11, and Ik)

MONEY STOCK

The market yield on three-month Treasury bills
averaged 4.34 per cent in the three days ending August 23,
almost a full percentage point higher than the rate in early
June. Interest rates on banker’s acceptances, prime commer­
cial paper, and negotiable certificates of deposit have risen
since mid-year but have remained well below the highs of 1966.

The money supply averaged $177.7 billion in
the four weeks ending August 16, up 5 per cent from the
corresponding period a year ago. Monetary growth over
the past twelve months as a whole has not been sub­
stantially different from the 4.2 per cent rate from
1964 to 1966 and about double the trend rate since 1957.
Sharply contrasting growth rates have characterized
periods within the past year. The money stock in early
February, 1967, was about the same as six months earlier.
In the most recent six months money has risen at a 10
per cent annual rate. Part of this growth reflects
a shift from Government deposits (not included in the
money stock) to private demand deposits.

Interest rates on long-term Government bonds averaged
^■>6 per cent for the three days ending August 23, while the
rates on outstanding highest grade corporate bonds averaged
5.64 per cent. In contrast to short-term securities, the yields
on these longer-term bonds are above their 1966 highs and have
been moving higher almost steadily since early this year.
The yield on 3-to-5 year Treasury securities has been
rising since early April. The average rate for the three
days ending August 23 was 5.36 per cent, which is still below
the high of 5«8o per cent in early September, 1966.
Since mid-June yields on intermediate-term securi­
ties have been higher than on either short or long-term
obligations. This same relationship existed throughout the
period of rising interest rates in the spring and summer of
1966. The implication of this condition may be that the market
ects yields to rise in the near future, but to subsequently
urn to a lower level. From September, 1966, to March, 1967,
yields on both short and intermediate-term securities were
higher than on long-term, while from March to early June the
long-term rates were higher than rates on both short and inter­
mediate-term obligations. This shifting relationship of yields
may have reflected changing expectations with respect to market
yields (see "Changing Structure of Interest Rates" in June,
1967, Review of this Bank).


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

-

(Pages 4, 5, and 12)

BUSINESS LOANS (Pages 9 and 13)
Business loans outstanding at large commercial
banks amounted to $63.4 billion on Wednesday, August 16,
up slightly from the previous week, but down about $1
billion from late July. In the six months since February
these loans have increased at an average rate of about
10 per cent per year. By comparison, business loans
at all commercial banks rose at an average 9 per cent
rate from 1957 to 1966.

Rates of change reported in this release are
intended to serve as aids for analyzing recent
developments. Longer periods of time than
covered here are generally required to identify
major turning points.
Prepared by Federal Reserve Bank of St. Louis

Released: August 25, 1967

FEDERAL RESERVE CREDIT^
Billions of Dollars

2

Seasonally Adjusted by this Bank

Billions of Do Heirs

Annual rates of change of Federal Reserve Credit
adjusted for reserve requirement changes

+ J.C*

Federal Reserve Credit Adjusted
for Reserve Requirement Changes

Federal Reserve Credit

Federal Reserve Holdings of U
and Federal Agency Securities
___________ __________ J___ * Data beginning March 2, adjusted
for the effect of the changes in
T \
| reserve requirements.
'
1/ Federal Reserve Credit excluding float and a few minor items.
2/ Seasonal adjustment for Federal Reserve Holdings
computed by this bank using data ending December 1965;
Borrowings from Federal Reserve not seasonally adjusted.
Unadjusted data appear in Board's H.4.1 release.
:

Borrowings

Latest data preliminary
5

12

26 2


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

16

28 4 ‘18 25 1

15 22 1

29 5 12

26 3

31 7 14

Prepared by Federal Reserve Bank of* St. Louis

RESERVES
All Member Banks in the Nation
Weekly Averages of Daily Figures

Billions of Dollars
. Seasonal adjustment computed by this _
bank using data ending December 1965.
Unadjusted data appear in the Board's
—
H.k.l release.
-—
TOTAL RESERVES

3
Billions of Dollars

1/ D&ta prior* to March 16, 1967 adjusted for
estimated effect Of reserve requirement changes
and do not correspond with monthly series which
adjusts data to reserve requirements in effect
from September 1966 to March 1967.

from four weeks ending:
Total

1/

te serves Available for
Private Demand Deposits

RESERVES AVAILABLE FOR
PRIVATE DEMAND DEPOSITS
Annual rates of change, average of
from four weeks ending:

5 12

26 2


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

Latest data preliminary
Seasonal adjustment ’actors have been revised
Latest data plotted week ending:
to incorporate data through early 1967
31 7 14- 28 5 12
26 2
18 25 1
15 22 1
15 29 5 12
16
30 7 I1* 28 k
June
Feb.

16

30 6
Sept.

Prepared by Federal Reserve Bank of St. Louis

MONEY STOCK PLUS TIME DEPOSITS
Averages of Daily Figures
Seasonally Adjusted

Billions of Dollars

4
Billions of Dollars

from four weeks ending:

July i960 - July 1966

Current data appear
Back data appear in the September 1966 Federal

— latest data preliminary
^ ^Latest data plotted week ending: Aug. 16, 1967


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

15 22

15

29 5 12

26

3

17

For trend of money stock plus time deposits by
months see this bank's monthly release entitled
'Manet
Trends

26 2

16

Prepared by Federal Reserve Bank of St. Louis

Bii;
l8l
180

5

MONEY STOCK *
Averages of Daily Figures
Seasonally Adjusted
from four weeks ending:

■h 7. ?
179
178

July i960 - July 1966

/

177

•
175

- WEEKLY DATA -

174
173
172

- 13-week centered
- moving average

171
170
169

Weekly

167
166
165

Latest data preliminary
data plotted week ending: Aug. 16, 19&7

o'

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

~ * Current data appear in the Board's H.b release. Back
-- data appear in the September 1966 Federal Reserve Bulletin.-For trend of money stock by months see this bank's
monthly release entitled "Monetary Trends".
^

.1 ..I--L..L
30 7 14

28

4

18 25 1

15 22 1

15 29 5 12
Mar.
A

17

31

7 14

28 5 12

2(

Prepared by Federal Reserve Bank of St. Louis

Billions of Dollars
T 1
21.0

CERTIFICATES OF DEPOSIT
Large Commercial Banks
Wednesday Figures
1

i

1

1

1

1

1

1

1

1

11.1. 1

Ll

6
Billions of Dollars

1

Annual rates of change, seasonally unadjusted data,
average of four weeks ending Aug. 16, 1967 from
four weeks ending:
May 17, 1967
+ 3 l.y
Feb. 15, 1967
+■ 2n f
Nov. 16, 1966
Aug. 17, 1966
£
July 1964 - July 1966

21.0

20. 35
!
20.0

kk. 7

/

r

.

19.0

y
\

i

*

•mmm

19.0

_

j

1
18.0

18.0

£

!

—

/
r

.

n

17.0

1

y
16.0

16.0

7
n
/
Current and year ago data appear in the

15.0
Latest data preliminary
.Latest data plotted:
I

i

I

5 12 26
Oct.

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

1

_i_

I

I

I

I

16 30 7
Nov.
1966

1

1/

Aug. 16, 1967
I

I

_
I_

111!

14 28 4 11 25 1 8 22
Dec.
Jan.
Feb.

I
1

15
29 5
Mar.

15.0

Negotiable time certificates of deposit
in denominations of $100,000 or more.
J__ L
1----J__ 1—i_ 14
_
19 26 13 . J---.17 31 7 _ I_ L. 28 5 12 26 2 "TiT 30 6 13
July
Sept.
Apr.
June
May
Aug.

1967
Prepared by Federal Reserve Bank of St« Louis

BiU
186

184
182

3ns of Dollars
~T—1—I—1—1—1---- 1—1—I—1—1—1—1—1—
Annual rates of change, average of
four weeks ending Aug. l6, 1967
from four weeks ending:
May 17, 1967
//A7
Feb. 15, 1967
-biL.3
HUY •

180

Ano.

*17

y

*f

TIME DEPOSITS*
All Commercial Banks
Weekly Ave rages of Daily Figures

Billions of Do

Sensftnnllv ArfiusteH

/£. V

1

178
Lh >3£

176
- ■
•

172

1967
^La. 7

170

it
U
a/

/7<?7
/7/ C.
>7/ 7

166

''a
yf

7711
/7is
1730
H3 7

164

__ (Um 0/
}?

/ IS. ?

168

'7S.Jl

162
l6o

__ I|__
I
__ j__

'•'si
156

154
152
0 :

La te St data PI■el im:Lna ry
.967
Ta te st
ta T)1 ot tar •w k «»nd in z: kUG!. 16 1
11 1 1 1 1 1 1 I I I 1 1 1 1 1 1 1 1 1
Oct.


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

Nov.
1966

Dec.

Jan.

Feb.

J
i

* Current data appear in the Board's H.b release. Back
data appear in the September 1966 Federal Reserve Bulletin.
For trend of time deposits by months see this bank's
—
monthly release entitled "Monetary Trends".
1 1 ! 1 1 l 1 1 i. ! 1 l_u: l 1 J- J- J
1 1, 1 1 ,r;
Mar.

Apr.

July
Aug.
June
Sep1
May
1967
Prepared by Federal Reserve Bank of St. Louis

Millions of Dollars

BORROWINGS AND EXCESS RESERVES
All Member Banks in the Nation
Averages of Daily Figures

g
Millions of Dollars

1100

ULOO

1000

1000

BIWEEKLY SETTLEMENT PERIODS

Excess Reserves

Net Free Reserves

-100

-100

One Week

-200

Latest data preliminary


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

12

26

2

16
Aug.

30

13

27
Sept.

11

25
Oct.

8

22
Nov.

Prepared by Federal Reserve Bank of St. Louis

BUSINESS LOANS
Large Commercial Banks
Wednesday Figures

Billions of Dollars

9

Seasonally Adjusted bythisBank

—Annual rates of change, average o
_four weeks ending Aug. l6, 1967
_from four weeks ending:
May 17, 1967
+10.0

Current and year ago unadjusted data appear in
the Board's E.k.2. release. Seasonal adjustment
computed by this bank using 1962 through 1966 data^

Latest data preliminary

J—L—L

512

1

262


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

Nov.

Dec.

Jan.

15 22 1
Feb.

May

June

July

Aug.

30 6 13
Sept.

1967
Prepared by Federal Reserve Bank of St. Louis

Per Cent

YIELDS ON SELECTED SECURITIES
Weekly Averages of Daily Rates Ended Friday

10
Per Cent

Corporate
Aaa Bonds

Long-Term
Government Bonds

Discount Rate

Three-Month Treasury
Bill Market Yield

— Latest data plotted are averages of rates available for the week ending: Aug. 25, 1967


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

27 3

17 2k 3
June
Prepared by Federal Reserve Bank of St. Louis

11

SELECTED SHORT-TERM INTEREST RATES
Weekly Averages of Daily Rates Ended Friday

Per Cent

Per Cent

Prime Commercial Paper
4-to-6 Month

Discount Rate

Prime Bankers
Acceptances

Federal Funds Rate

on

o

J__L L.J
7 14

28 4


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

18 25 2
1966

l6

30

6 13

27 3

17 24 3

l !

1

i

i I

............................

» I

1

i 1- 1 T I

31 7 14 28 5 12 26 2
16 30 7 14 28 4
18 25 1
15
Apr.
May
June
July
Aug.
Sept
1967
Prepared by Federal Reserve Bank of St. Louis

MEMBER BANK

12

AVERAGES OF DAILY FIGURES
WEEK ENDING WEDNESDAY
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
RESERVES
o/
AVAILABLE -1
FOR PRIVATE
WEEK
ENDING DEMAND DEPOSITS

1/
TOTAL =J
RESERVES

AVERAGES OF DAILY FIGURES
WEEK ENDING WEDNESDAY
MILLIONS OF DOLLARS
EXCESS
RESERVES BORROWINGS

7S.32*

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2.3.23

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2.2,

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7?
S/j,*7 S
----- -----------

FREE
RESERVES

MONEY STOCK
*
AVERAGES OF DAILY FIGURES
WEEK ENDING WEDNESDAY
SEASONALLY ADJUSTED
BILLIONS OF DOLLARS

f

/I/O

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PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS
P - PRELIMINARY
1/ Data prior to March 16, 1967 adjusted for estimated effect of reserve requirement changes,

£•/ Seasonal adjustment factors have been revised to incorporate data through early 1967.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

/j>.vs P

3/3 SU f

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BUSINESS LOANS
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
MILLIONS OF DOLLARS
SEASONALLY
DATE
UNADJUSTED ADJUSTED

DATE

/W7 (L«/V

LAW

( zJLj ^

LARGE CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
MILLIONS OF DOLLARS

SEASONALLY
UNADJUSTED ADJUSTED
l y osi.

DATE

UNADJUSTED

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DATE

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

5

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13

14

SELECTED YIELDS
YIELDS ON U. S. GOVT. SECURITIES
,5vc»d
3-MONTH
J-S YfcAK TREAS. BILL
PER CENT PER ANNUM
AVERAGES OF DAILY FIGURES

LONG-TERM
WEEK

12 i 7

7 ___ istt___

__ _________ f±

±ss

¥3L

______ 3

y*;

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0

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3.82

S/y

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¥.JS

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¥ iS

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y. 76

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S.37

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____ __________

------------------ U- ____ 111_____ ____ ±JA___

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___________ 3tL ____ 4Z£_____ ____ /,i?___

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¥. 70

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3.80

__ 411____

___ S / !e_____

‘AVERAGES OF RATES AVAILABLE


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

___

JM___ ____ ±10

____ 111_____ ___ Ss±_____
___ 1U. ____ ±12

I/O

___

?. ¥/

_____ Qm/u

¥ 30

y y«r

------------------- 1 ____ tiu_____ ____ 4i±____

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____ 111_____

------ J,

¥ 2S

S./2,

____________11- ____ ±11_____

¥ 7±

¥38

Hit____

____ ±7S

s.!o

Soo

PER CENT PER ANNUM

___

y C2,

2t_

S./y

FEDERAL FUNDS

____ +31

------------- -2J_ ____ ¥l±_____
___________

_ 3IS
_

PRIME
COMMERCIAL
PDIUP
LARGE
CORPORATE
PAPER
BANKERS
90 DAY
Aaa
4-6-MONTH ACCEPTANCES CD'S**
PER CENT PER ANNUM
AVERAGES OF DAILY FIGURES
FRIDAY

s.sf

S.00

¥.es

S 00

¥.c>S

___ f.2Q___

S.(,2l

___ 3.Q0

¥.78

¥.80

¥.OS

s.y+

S. OO

¥. IS

4 34

SECONDARY MARKET RATE ON 90-DAY PRIME CD'S

1.9L

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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