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Week ending: February 8r 1978

LIBRARY

DEC 2.6 1979
About one month ago, on January 6 of this year, the
Board of Governors announced that Federal Reserve Banks would
raise their discount rates from 6 percent to 6.50 percent.
Interest rates on U.S. Government securities rose sharply in the
following week. From the week ending January 6 to the week
ending January 13, interest rates rose 40 basis points on threemonth Treasury bills, 37 basis points on one-year Treasury bills,
26 basis points on 3-5 year Treasury securities, and 14 basis
points on long-term Treasury securities.
Since the week following the rise in the discount rate,
interest rates have declined on short and intermediate term U.S.
Government securities, reversing part of the initial increases.
From the average of the week ending January 13 to the average of
rates available in the most recent week, interest rates have
declined 15 basis points on three-month Treasury bills, 10 basis
points on one-year Treasury bills, and 8 basis points on 3-5 year
Treasury securities. However, on balance, these interest rates
currently remain above rates that prevailed during the week
ending January 6. Interest rates on 90-day certificates of
deposit and 4-6 month prime commercial paper have followed a
pattern since January 6 similar to the pattern of rates on short
and intermediate term U.S. Government securities — rising first
and then declining, but by less than the initial rise.
In contrast to the behavior of short-term rates,
long-term interest rates have continued to rise in recent weeks.
Interest rates on long-term Treasury securities and Corporate Aaa
bonds have been rising steadily since mid-September of last year.
This increase has been most pronounced since the end of November.
From the average of the week ending November 25 to the average of
rates available in the most recent week, interest rates have
risen 43 basis points on long-term Treasury securities and 38
basis points on Corporate Aaa bonds.


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

Due to the effects of the snow storm in the
Northeast, data for this release were not available
at the regular time; therefore, this release was
mailed on Monday instead of Friday.

Prepared by Federal Reserve Bank of St. Louis
Released: February 10, 1978

MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

134

BILLIONS
__ JAN.

131.0
130.9
132.0
131 .9
132.2
132.7

132

130

128

126

124

122

120

118

1 15 29 12 26 9 23
JAN FEB

6 23

6 20
APR

4 18
MAY

1 15 29 13 27 10 24

7 21

5 19

2 16 30 M 28 11 25 8 22
DEC
JAN FEB

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 8, 1978
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 MONETARY BASE IS AVAILABLE FROM THE FEDERAL RESERVE BANK OF ST. LOUIS.

MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
9/7/77 10/5/77 11/9/77 12/7/77
5/11/77
7/6/77 8/10/77
2/9/77
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
7/ 6/77
8/10/77
9/ 7/77
10/ 5/77
11/ 9/77
12/ 7/77
1/11/78
2/ 8/78


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

8.0
9.0
8.3
8.9
9. 1
8.7
8.9
9.6

9.4
8.2
9. 1
9.3
8.7
9. 1
10.0

9.2
10.3
10.3
9.4
9.7
10.7

8.6
9.2
8.2
8.9
10.3

1 1 .5
9.5
9.9
11.4

8.0
9.0
11.0

8.4
11.3

14.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER^
ADJUSTED FEDERAL RESERVE CREDIT 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

3.0

MULT

ratio

DEC. 28

.578
2.551
2.539

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 1, 1978

BILLIONS OF DOLLARS
116 ------,---- ,--

BILLIONS OF DOLLARS
--- ---------- 116

COMPOUNDED ANNUAL RATES
-- OF CHANGE, AVERAGE OF

_ the four Weeks ending

FEBRUARY 8, 1978 FROM
-- THE FOUR WEEKS ENDING:
- DEC.
7, 1977 16.8
__ NOV.
9, 1977 14.2
OCT.
5, 1977 13.3
_ SEP.
7, 1977 14.0
'
‘
12.4
12.0
_ FEB.
11.3

ADJUSTED FEDERAL RESERVE CREDIT

1978

BILLIONS

i-Ll 1 I I I I
DEC
1976

JAN

FEB

MAR

APR

MAY

JUN

JUL

,977

AUG

SEP

OCT

16 30 14 28 M 25

DEC

JAN

8 22

FEB

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 8, 1978
1/ RATIO OF MONEY STOCK (Ml ) / MONETARY BASE.

" wusmmmmam


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
320
815

BILLIONS,
DEC. 28

810

806.9
813.1
810.7
812.0
812.8
811.6

805
800
795
790
785
780
775
770
765
760
755
750
-Ej 745
740
735
730

1 15 28 12 26

JAN

9 23

9 23

6 20

APR

FEB

4 18

1 15 28 13 27 10 24

7 21

SEP

MAY

5 18

2 16 30 14 28 11 25

OCT

DEC

JAN

8 22

FEB

LATEST DATA PLOTTED WEEK ENDINGi FEBRUARY 1, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDINGi
8/3/77 8/31/77 9/28/77 11/2/77 11/30/77
5/4/77 6/29/77
2/2/77
TO THE AVERAGE
OF FOUR WEEKS
ENDINGi
6/29/77
8/ 3/77
8/31/77
9/28/77
11/ 2/77
11/30/77
1/ 4/78
2/ 1/78


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

4

8.8
10.5
9.7
9.6
9.5
9.1
8.9
8.7

10.8
9.4
9.2
9.2
8.6
8.4
8.2

11.7
10.8
10.3
9.4
8.9
8.6

6.8
7.7
7. 1
7.0
7.0

8.9
7.7
7.5
7.4

7.3
7.1
7.0

6.1
6.3

6.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

MONEY STOCK ( Ml )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS

of dollars

345

340.2
336.6
337.2

340

335.7
335

330

325

320

315

310

1

15

29 12 28 9 23

DEC JAN
1976

FEB

9 23 8 20

MAR

APR

4 18

MAY

1

13 29 13 27 10 24

JUN

JUL
1977

AUG

7 21

5 19

2 16 30 14 28 11 25

SEP

OCT

NOV

DEC

JAN

8 22

FEB
1978

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 1, 1978
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, AVERAGE OF FOUR WEEKS ENDING:
2/2/77
5/4/77 6/29/77
8/3/77 8/31/77 9/28/77 11/2/77 11/30/77
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/29/77
8/ 3/77
8/31/77
9/28/77
11/ 2/77
11/30/77
1/ 4/78
2/ 1/78


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

6.5
9.0
8.1
8.3
8.5
7.6
7.8
7.3

8.6
7.2
7.6
8.0
6.8
7.3
6.7

12. 1
11.1
10.8
8.6
8.9
7.9

5.9
7.4
5.4
6.5
5.7

9.5
6.2
7.3
6.2

5.0
6.8
5.6

5.1
4.0

6.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
10.0
9.5
9.0
8.5

CORPORATE Aaa BONOS
8.0

7.5
7.0

PRIME BANK
LOAN RATE

6.5
MUNI Cl PAL

6.0

5.5
COMMERCIAL PAPER

5.0
4.5
4.0

3 17 31 14 28 11 25 II 25

JAN

FEB

8 22

MAR

6 20

3 17

MAY

9 23

7 21

4 18

2 16 30 13 27 10 24

OCT

I 15 29 12 26

JUN

NOV

JAN

FEB

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: FEBRUARY 10, 1978

1978
DEC.

2
9
16
23
30
6
JAN.
13
20
27
FEB.
3
10 X
17
24

90 DAY
CD' S S8BK

PRIME
COMMERC1AL
PAPER
4-6 MONTH

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDS ae*

6.62
6.63
6.72
6.72
6.78
6.77
6.88
7.06
6.97
6.90
6.88

6.57
6.60
6,64
6.68
6.68
6.69
6.77
6.85
6.83
6.81
6.79

6.46
6.55
6.57
6.65
6.71
6.71
6.98
6.89
6.85
6.82
6.80

8.08
8.13
8.18
8.23
8.28
8.30
8.40
8.44
8.46
8.46
8.45

5.47
5.54
5.55
5.55
5.66
5.64
5.75
5.74
5.70
5.63
N.A.

* AVERAGES OF RATES AVAILABLE.
„ ___
„
** BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
„
#** SEVEN-DAY AVERAGES OF SECONDARY MARKET RATES FOfc 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

6

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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
- 8.0

8.0 --

3-5 YEAR
TREASURY SECURITIES

FEDERAL FUNDS RATE
N__ f

DISCOUNT RATE

THREE-MONTH TREASURY
BILL MARKET YIELD

3

17 31

DEC
1976

14 28

JAN

11

FEB

25

11

25

MAR

8 22

APR

6 20
MAY

3

17

JUN

1

15 29

JUL
1977

12 26

AUG

9 23

SEP

7 21

■4

OCT

NOV

18

2

16 30

DEC

13 27

10 24

JAN FEB
1978

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: FEBRUARY 10, 1978

1978
DEC.

2
9
16
23
30
JAN. 6
13
20
27
FEB.
3
10 *
17
24

FEDERAL
FUNDS **

3-MONTH
TREASURY
BILLS

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

6.55
6.51
6.49
6.54
6.65
6.69
6.58
6.78
6.72
6.80
6.75

6.04
6.07
6.03
6.03
6. 16
6.20
6.60
6.48
6.44
6.42
6.45

6.49
6.52
6.50
6.53
6.57
6.57
6.94
6.84
6.82
6.80
6.84

7.29
7.36
7.38
7.43
7.51
7.52
7.78
7.75
7.74
7.68
7.70

7.66
7.72
7.75
7.81
7.88
7.91
8.05
8.04
8.05
8.05
8.08

* AVERAGES OF RATES AVAILABLE.
5BR SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.
TREASURY BILL YIELDS ON DISCOUNT BASIS.
PREPARED BY FEDERAL. RESERVE BANK OF ST. LOUIS

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

J

I

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
480

BILLIONS
DEC. 28

475

471.3
472.9
474. 1
474.8

470
465
460
455
450
445
440
435
430
425
420
415

1 15 29 12 26

JAN

9 23

9 23

6 20

1 IB

APR

FEB

1 15 29 13 27 10 24

7 21

5 10

MAY

2 16 30 14 28 11 25

DEC

8 22

FEB

1 Q7R

1977

1976

JAN

LATEST DATA PLOTTED WEEK ENDINGi FEBRUARY I, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
K NET TIME DEPOSITS ARE DEFINED ASi SAVINGS DEPOSITS. TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF 8100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDINGi
8/3/77 8/31/77 9/28/77 11/2/77 11/30/77
5/4/77 6/29/77
2/2/77
TO THE AVERAGE
OF FOUR WEEKS
ENDINGi
6/29/77
8/ 3/77
8/31/77
9/28/77
11/ 2/77
11/30/77
1/ 4/78
2/ 1/78

8


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

10.5
1 1.5
10.9
10.6
10.3
10.3
9.6
9.7

12.3
1 1.0
10.5
10.1
10.0
9.2
9.3

11.7
10.6
10.0
10.0
8.9
9. 1

7.5
7.8
8.3
7.4
7.8

8.3
8.8
7.6
8.0

9. 1
7.4
8.0

6.9
7.9

7.0

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
255

BILLIONS
246.9
251 .5
247.9

250

247.8
246. t

245

240

235

230

1 15 29 12 26

JAN

9 23

9 23

6 20

4 18

APR

FEB

MAY

1976

I 15 29 13 2T 10 24

7 21

S 19

SEP

OCT

2 ia 30 14 26 II 23

DEC

1977

6 22

JAN FEB
1978

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 1, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

DEMAND DEPOS1T COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING.
2/2/77

5/4/77

6/29/77

8/3/77

8/31/77

9/28/77

5.9
8.9
7.8
7.8
8.1
6.9
7.2
6.5

8. 1
6.4
6.7
7.3
5.7
6.4
5.5

12.5
1 1.0
10.7
7.8
8.3
7.0

4.4
6.4
3.8
5.3
4.3

8.9
4.7
6.3
4.8

3.4
5.9
4.2

11/2/77 11/30/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/29/77
8/ 3/77
8/31/77
9/28/77
11/ 2/77
11/30/77
1/ 4/78
2/ 1/78


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

3.8
2.1

5.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
92

BILLIONS
88.7
88.7
89.2
89.6
89.7

90

88

86

84

82

80

1 IS 29 12 26

JAN

9 23

9 23

6 20

4 IS

APR

FEB

MAY

1976

I 15 29 IS 27 10 24

7 21

5 19

2 16 SO 14 28 11 25

DEC
1977

8 22

JAN FEB
1978

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 1, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
2/2/77
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
6/29/77
8/ 3/77
8/31/77
9/28/77
11/ 2/77
11/30/77
1/ 4/78
2/ 1/78

10


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

8.7
9.6
9.3
9.8
9.8
9.7
9.6
9.8

5/4/77

10.0
9.5
10.1
10.1
10.0
9.8
10.1

6/29/77

10.8
11.4
1 1.0
10.7
10.3
10.6

8/3/77

10.4
10.2
10.0
9.7
10. 1

8/31/77

9/28/77

11.3
10.7
10. 1
10.5

9.7
9.3
10.0

11/2/77 11/30/77

8.9
10.0

10.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS
1978

BILLIONS OF DOLLARS
--- --------- 2.5

M. LLIONS

1 15 29 12 26

DEC
1976

IN THE NATION

AVERAGES OF DAILY FIGURES

BILLIONS OF DOLLARS
2.5 ------1---- 1--

JAN

9 23 9 23

FEB

MAR

6 20 4 18

1 15 29 13 27 10 24

APR

JUN

MAY

JUL
1977

AUG

7 21

SEP

5 19

2 16 30 14 28 11 25

OCT

NOV

DEC

JAN

8 22

FEB
1978

LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 8, 1978

BUSINESS LOANS

( COMMERCIAL AND

INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
128
126
124
—

122

120
118
116
114
112
110

_ COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
— THE FOUR WEEKS ENDING '
— FEBRUARY 1, 1978 FROM
— THE FOUR WEEKS ENDINGi .

108
MILLIONS

106

DEC. 28
— AUG. 31

104

1977

102

100
I. I 1 I I I I
1 15 29 12 26

JAN

I I I I I I 1 I
9 23

FEB

9 23

6 20

4 18

APR

MAY

1 15 29 13 27 10 24

7 21

5 19

SEP

OCT

2 16 30 14 28 II 25

JAN

8 22

FEB

1976
LATEST DATA PLOTTED WEEK ENDING: FEBRUARY 1, 1978


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

CERTIFICATES OF DEPOSIT

LARGE COMMERCIAL BANKS
WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

BILLIONS OF DOLLARS


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

BILLIONS OF DOLLARS
SO

billions

78
JAN.

77.3
76.6
76.0
76.0
76.3

76

74

72
70

66
66

62
60

1

IS 29 12 2t

9 23

6 20

4 19

APR
I 976

9 23

MAY

1

15 29 13 27 10 24

7 21

3 19

2 16 30 14 28 11 25

DEC
1 977

B 22

JAN
FEB
1978

LATEST DATA PLOTTED WEEK ENDINGi FEBRUARY I, 1978
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 COHMERCIAL BANKS.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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