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S. finfllKIRL DATA
of St. Louis

Week ending December 4,1968

Following increases in market interest rates
(pages 8 and 9) during the past few months, the majority
of commercial banks raised their interest rates on loans
to prime business customers from 6% per cent to 6% per
cent early this week, reversing the action taken in
September. Yields on three-month Treasury bills averaged
5.66 per cent during the three days ending December 4,
up from a low of 4.96 per cent in early August, but still
below the high of 5.82 per cent in May. Rates on long­
term Government bonds have climbed from about 5 per cent
in early August to 5.57 per cent this week, a rate slight­
ly above the 5.52 per cent high in May. Yields on three
to five year Government securities averaged 5.75 per
cent during the three days ending December 4, compared
with 4.28 per cent in early August and a high of 6.09
per cent in May. Highest grade corporate bond yields
have risen above the high level of late May, averaging
6.31 per cent during the three days ending December 4.
This is the highest yield on these corporate securities
since 1920.
Increases in market interest rates relative to
Regulation Q ceilings may hinder banks' ability to com­
pete for time deposits in coming months. However, data
presently available do not indicate that the growth rate
of time deposits (page 7) has slowed at the present time.
Time deposits at commercial banks averaged $201.7 billion
during the four weeks ending November 27, up at a 17 per
cent annual rate from three months ago. Time deposits
grew at a slower 7 per cent rate during the first half


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Federal Reserve Bank of St. Louis

of the year, probably reflecting the effect of high mar­
ket interest rates on banks' ability to compete for time
deposits.
The accelerated growth rates of time deposits,
total deposits, and bank credit since mid-year have
not been accompanied by accelerated growth of the mone­
tary base (page 2). During the past three months the
base has increased at a 6.4 per cent rate,compared with
the 6 per cent annual rate of increase during the first
half of the year, and a trend rate of 3.3 per cent per
year from 1957 to 1967.
The growth rate of the money stock (page 3),
which is largely determined by the trend growth of the
base,has been slower since mid-year. The slower growth
of money may be partly attributed to the unusually rapid
growth of time deposits since June, which has reduced
the amount of demand deposits or money which the mone­
tary base can support. The 3.8 per cent annual rate of
growth of money during the past three months is far less
than the 8 per cent rate during the first half of the
year, but significantly higher than the 1957 to 1967
trend rate of 2.6 per cent. Since September the growth
rate of the money stock has accelerated. If the monetary
base continues to rise at its recent rate and time de­
posits begin to grow at a reduced rate, the probabilities
are great that money growth will increase rapidly in
coming months.

Rates of change reported in this release are
intended to serve as summaries which may be
useful in analyzing recent developments.

Prepared by Federal Reserve Bank of St. Louis
Released: December 6,1968

MONETARY BASE LL
FEDERAL RESERVE CREDIT L2
Averages of Daily Figures

Billions of Dollars

Billions of Dollars

Seasonally adjusted by this bank.
Annual rates of change, average of
four weeks ending Dec. 4, 1968 from
fqur weeks ending:
Monetary Base F.R.. Credit

y-

1957-1967

Monetary Base

1968

Monetary
Base

Federal Reserve Credit

_ JL/ Uses of the monetary base are member bank
_
reserves and currency held by the public and
_ nonmember banks, adjusted for reserve requirement
- changes and shifts in deposits.
For a description
- of the base see the August Review of this bank.
_
---Latest data preliminary
---Latest data plotted week ending: Dec. 4, 1968

6

20

18

Sept.


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Federal Reserve Bank of St. Louis

1

15

29

13 27 10

24

7

21

6

20
'.

3 17
Apr.

1
15
May

29 "12
26 10 24
June
July

^^1968

7
21
Aug.

7J

As defined in the statistical tables of the
Federal Reserve Bullet in. adjusted for reserve
requirement changes and shifts in deposits.

4
18
Sept.

2

16
Oct.

30

13

27

11

25

8

22

MONBi^TOCK*

Averages ofDaily Figures
Seasona lly Ad usted

Billions of Dollars

BillionB of Dollars

205
WEEKLY DATA
1968

- Annual rates of change, average of
- four weeks ending Nov. 27, 1968
“ from four weeks ending:
' Aug. 28, 1968 U 38

QUA. /loo
/0

?

/*?■?
/?/•<?

33

/SVf

jo

Feb. 28, 1968
_T_ Nov.

m.i
/9A5

no./
3>o /9Z.X,
/3

1957-1967

3 7 193.3

13-week centered
moving average
Weekly

180

3

* Current data appear in the Board’s H.6 release.
Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of money stock by months see this bank’s
monthly release entitled "Monetary Trends".
Mill
l I 1 I I
1 1 I I 1 I

Latest data preliminary
Latest data plotted week ending: Nov. 27, 1968
i l 1 1 l I

6 20 It 18 1 15 29 13 27 10 2k 7 21 6 20 3 17 1 15 29 12 26 10 24 7 21

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

Dec.

June

4 18

2

16 30 13 27 U 25

3

22 5 19 5 19 2

Sept.

Prepared by Federal Reserve Bank of St. Louis

MONEY STOCK PLUS TIME DEPOSITS*
Averages of Daily Figures
SeasonallyAd usted

Billions of Dollars

Billions of Dollars

Annual rates of change, average of
four weeks ending Nov. 27, 1968
from four weeks ending:

1957-1967

396.3. P

Latest data preliminary
Latest data plotted week ending:

6 20 4 18 1 15 29 13 27 10 24
Sept.

Nov. 27, 1968

7 21

6

20
Mar.

Oct


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Federal Reserve Bank of St. Louis

* Current data appear in the Board's H.6 release. Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of money stock plus time deposits by months’
see this bank's monthly release entitled "Monetary Trends".

1967

3

17
Apr.

1

15 29 12 26
May
June

10 24
July

7

21

Aug.

4

18
Sept.

2

l6 30
Oct.

13

27 11 25

Nov.

8 22 5 19 5 19 2

Dec.

1968
Prepared by Federal Reserve Bank of S1

5

BUSIES LOANS
Large Col™ercia I Banks
of Dollars

Billions of' Dol.

Wednesday Figures

73

73

Seasonally ad justed by this bank.
Annual rates of change, average of
four weeks ending Nov. 27, 1968
72

71

72

Feb. 28,
Nov. 29,

+ 9.S
-hl°.9
+

to.

-

7f.JJL

7

71

1960-1967

70

70

69

69

68

68

67

67
MILLIONS OF DOLLARS

66

UNADJUSTED

1968

I

65

<7
/

/y/

J/

f

61,

//

61 /n
61 928

n'

61. 369

1

/.

64

'

7

'3

zo
z 7

62

Ss!

0 1
4


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Federal Reserve Bank of St. Louis

18 1 15 29 13 27
Oct.
Nov.
Dec.
1967

(1.693
61 96 3
70 3f3
(9 830

64

.63

67 8
7030/
70] A 6 ic
P

7/, tjo
7 7,3! (?

p

62

Current and year ago unadjusted data appear in
the Board's H.4.2 release. Seasonal adjustment
computed by this bank using 1962 through 1967 data.

— Latest data preliminary
Latest data plotted: Nov.

61

65

6 9, /o 1

6^686
1b 13/
76,177
71S, 90?

la

6?,c69
(1. 16 L
(ins'
(8, 9so
61, 110
6 9 181
69, 77V
6>11q3
7o, c 93
70 772
7(7 32.X

6? Yzr

t ,
/b
13
30

63

6 % cee
a, m
61, 6VZ

66

SEASONALLY
ADJUSTED

10 24
Jan.

^

21
Feb.

Mar.

3 17
Apr.

1

15 29
• (tey

12

26

June

10 24
July

1968

7

rm-mrmrt inm i mm 11

21
Auu.

4

11

Sept

2

16

Oct.

30 13

27

Nov.

11 25
Dec.

3

5

Jan.

19
Feb.

6l

~ o
5

19
Mar.

u.yo9
Prepared by Federal Reserve Bank of St. Louis

2

A‘pr.

CERTIFICATES OF DEPOSIT []_
Large Commercial Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

Annual rates of change, seasonally unadjusted data
average of four weeks ending Nov. 27, 1968 from
four weeks ending:
Aug. 28, 1968
-f-ja.i
May 29, 1968
^

+ /?■/
1964-1967

Millions of Dollars

ML?

--—

Latest data preliminary

20
Sept.
f

4

18


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

1

15 29

13

27 10

24

7 21
Feb.

6

20 3

17

1

15 29

10
June

24

7

21

4

Current and year ago data appear in the
Board's H.4.2. release.
\/ Negotiable time certificates of deposit
in denominations of $100,000 or more.

18 2
Sept.

If.

30

13 27 11

25
Dec.

8

22

1968
Prepared by Federal Reserve Bank of St. Louis

TIME DEPOSITS*
All Commercial Banks
Averages of Daily Figures
- Seasonally Ad u sted

Billions of Dollars

Billions of Dollars

Annual rates of change, average of
four weeks ending Nov. 27, 1968
from four weeks ending:

1957-1967

* Current data appear in the Board’s H.6 release. Back
data appear in the June 1968 Federal Reserve Bulletin.
.
For trend of time deposits, by months see this bank’s
monthly release entitled "Monetary Trends".

Latest data preliminary
__
Latest data plotted week ending: Nov. 27, 1968

6

20

4

18

Sept.


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

1

15

29 13

27

10 24

7

21

6 20

3

17

1

15

29 12

26

June

10 24
July

7

21

4 18

2

16

30 13

27 11

25

8

22

5

19

Aug

5

19
Mar.

Prepared by Federal Reserve Bank of St

2
Apr.

s

YIELDS ON SELECTED SECURITIES
Averages of Dally Rates Ended Frida

Per Cent

LONGTERM

si i

J'.JS

CORPORATE
Aaa
{p.O qL*

(..64

j'.iV

&./0
4-/3
4 .(S*

s.<s
r
s4.33

4./
i
4 .AT

j'.j/

Per Cent

^■1°

&J7

J'.'d
S-S"l

C..2.S
4.3!

Corporate
Aaa Bonds

iThree-Month Treasury
J Bill Market Yield

Discount Rate'

Long-Term
'Government Bond

J—l—l

8 22 6 20 3 17

1 15 29 12 26 9 23 8 22 5 19 3
Dec.

1967


http://fraser.stlouisfed.org
*AVERAGES OF RATES AVAILABLE
Federal Reserve Bank of St. Louis

Jan.

Feh.

Mar.

Apr.

1? 31 14 28 12 26 9 23 6
May

June July
1968

Aug.

20 4 18 1 15 29 13 27 10 24 7 21
:

7 21

1969
Prepared by Federal Reserve Bank of St. Louis

9
SELECTED SHORT-T
INTEREST RATES
Avera ges of Daily Rates Ended Friday
PRIME
COMMERCIAL
PRIME
BANKERS'
PAPER
4-6-MONTH ACCEPTANCES

Per Cent

LARGE
90 DAI FEDERAL
CD'S ** FUNDS

k. oo

6.50 —
Commercial Paper’
4-to-6 Month

Discount Rate

Bankers
Acceptances

Federal Funds Rate

Latest data plotted are averages of rates available for the week ending: Dec. 6, 1968

8

22

Sept.

6 20 3 17 1 15 29 12 26 9 23 8 22 5 19 3 17 31 14 28 12 26 9 23
Oct.
]
1967

Dec.

♦AVERAGES OF RATES AVAILABLE

**SOURCE: SALOMON BROTHERS AND HUTZLER
http://fraser.stlouisfed.org
SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.
Federal Reserve Bank of St. Louis

June

July

6 20 It 18 1 15 29 13 27 10 24 7 21 7 21

Aug.

Prepared by Federal Reserve Bank of St. Louis

10

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

Millions of Dollars

Millions of Dollars

2,000
EXCESS
RESERVES

SORROWINGS

FREE
RESERVES

WEEKLY DATA

3XS

Sf/

AJS
3/3

tC3
,

- ATS,
- ng
-H3

-*7<r

I

337

Hi 7

-no

If3
HZ3

3fA
4/0'

-loj
-/Ml

SiJL

-t<*3

"

-//y

3^7
HA

SH

//“?
'

O*- y

-338
1,500

-3*1

1,200
BIWEEKLY SETTLEMENT PERIODS

WEEKLY RESERVE PERIODS —

1,000

Borrowings

Excess Reserves

100

-- Net Free Reserves

_1/ Because of the change in Regulation D ~Z"
placing all member banks on a one-week__
reserve adjustment period, beginning with—
the week ending September 18, 1968 the
--above reserve data are reported on a
one-week period.
___

Latest data preliminary
Latest data plotted week ending: Dec. 4, 1968

11 1!ll ! T ! ! II I I I ! I I I I I I I M
13

27

11 25


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

8

22

6

20

3

17

31

14

28 13 27

10

24

8

22
May

5

19
June

3

17
July

31 14

28 11

25

9

23

6

20

1

15 29

12 2(

• Prepared by Federal Reserve Bank, of St

12

26

9

DEMAND DEPOSIT COMPOIJtfNlT OF U S. MONEY STOCK*
Average* ofrro iIy Figures
Seasonally Ad

Billions of Dollars

11
BlllionB of Dollars

WEEKLY DATA
1968

Annual rates of change, average of
four weeks ending Nov. 27, 1968
frcm four weeks ending:
Aug. 28, 1968

a7
0/1
A!
18

i~S-3

Jwv
'//

Feb. 28, 1968

jg
*r

1957-1967

Cciz

'
/*?/
i + 7-or
I US'
t+7-S
/its
/**■*
/ 07-3

<8 I+7-/
/(, Jft.213
3 6 / 17- /
13 H't.i
20 /*?.?

ay /so.o p

13-week centered
moving average

Weekly

____ Latest data preliminary
-A— Latest data plotted week ending:

* Current data appear in the Board's H.6 release.
Back
data appear in the June 1968 Federal Reserve Bulletin.
For trend of demand deposits by months see this bank's

Nov. 27, 1968

m

monthly release entitled "Monetary Trends".

6

20 li 18 1
Sept.
Oct.


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

1967

15 29 13 27
Nov.
Dec.

10 24
Jan.

7

21
Feb.

6

20
Mar.

3

17
1
Apr.

15 29
May

12 26
June

10 24

July
1968

7

21
Aug.

4

18
Sept.

2

l6 30 13 27
Oct.
Nov.

ll 25
Dec.

8

22

5

19 5

19

Jan.

1969
Prepared by Federal Reserve Bank of St. Louis

2