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Week ending: January 5, 1977

.

As indicated in the table below, yields on most securities have declined
the last half of 1976. The decline in interest rates has occurred quite
steadily over this six-month period, with yields on most short-term and
intermediate-term securities decreasing by more than one full percentage point
and yields on long-term securities falling by between 70-105 basis points.

2 6 1979

.

The following factors affected the movement in interest rates during
the last half of 1976. 1) Compared to the first half of the year, economic
activity advanced at a slower pace in the second half of the year. 2) Private
short-term borrowing increased moderately as business loans at large commercial
banks rose at about a 7.5 percent annual rate during the last half of 1976 and
commercial paper outstanding rose at about a 3 percent rate. 3) Federal
borrowing requirements were lower than expected in this period due to the
shortfall in Federal expenditures over the transition quarter and the consequent
build-up of Treasury cash balances as tax receipts accumulated. 4) Funds were
readily available for lending in the short-term credit markets as commercial
banks and other financial intermediaries experienced large inflows of funds
which they sought to invest in earning assets. 5) The decline in the rate of
inflation and the moderate rate of monetary expansion during 1976 contributed to
a reduction in inflationary expectations, which also contributed to the decline
in interest rates.
YIELDS ON SELECTED SECURITIES
(One-Week Average of Daily Rates)
Change
(Basis

June 25

December 31

Short-Term Securities
Prime Commercial
Paper (4-6 Month)

5.90 %

4.65 %

125

Prime Bankers 1
Acceptances

5.69

4.65

104

3-Month Treasury Bills

5.34

4.34

100

1-Year Treasury Bills

6.06

4.62

144

Intermediate-Term Securities
3-5 Year Government
Securities
7.32

5.98

134

Long-Term Securities
Corporate AAA Bonds

8.60

7.91

69

Long-Term Government
Securities*

7.84

7.11

73

Municipal Bonds**

6.87

5.83

104

* Issues due or callable in ten years or more, excluding issues
that have special Federal estate tax privileges.
** Thursday data.


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

Prepared by Federal Reserve Bank of St. Louis
Released: January 7, 1977

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
132

MILLIONS
DEC.
130

128

126

124

122

120

118

5 19

3 17 91

14 28 11

JAN

25 10 24

FEB

7 21

5 19

APR

MAY

2 18 30 14 28 11

JUL
1976

1975

25

8 22

6 20

3 17

OCT

AUG

NOV

1

15 29 12 26

1977

LATEST DATA PLOTTED WEEK ENDING: JANUARY 5, 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, AVERAGE OF FOUR WEEKS ENDINGi
1/7/76

4/7/76

6/2/76

7/7/76

8/4/76

9/8/76

10/6/76

11/3/76

8.6
7.3

7.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING]
6/
7/
8/
9/
10/
11/
12/
1/

2

2/76
7/76
4/76
8/76
6/76
3/76
8/76
5/77


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

7.1
8.0
6.6
7.3
7.2
7.1
7.5
7.3

8.7
5.9
7.2
7.2
7.0
7.5
7.2

5.4
7.7
7.5
7.2
7.8
7.4

5.2
5.6
5.7
6.9
6.5

9.5
8.4
9.1
8.2

6.3
8. 1
7.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

RATIO

RATIO

MULT PLIER

J.9T6.

RATIO

NOV. 24
DEC.
1

2.390
2.4TO

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 29, 1976
BILLIONS OF DOLLARS
1 IS ,-----,------ ,-

BILLIONS OF DOLLARS
- ------ ----- 118
-

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
THE FOUR WEEKS ENDING
JANUARY 5. 1977 FROM
THE FOUR ifcEEKS ENDING:
1976
1976
1976
1976
1976
1976
1976

- SEP
-

_

JAN

7.6
6.6
6.9
8.1
5.9
7.2
7.2

ADJUSTED FEDERAL RESERVE CREDIT

1377

5 19

3 17 31

14 26 11

JAN

FEB

25 10 24

7 21

5 19

APR

MAY

2 16 30 14 26 11

JUL
1976

1975

AUG

25

8 22

6 20

3 17

OCT

MILLIONS

NOV

1

15 29 12 26

LATEST DATA PLOTTED WEEK ENDING: JANUARY 5, 1977
1/ RATIO OF MONEY STOCK C Ml 1 / MONETARY BASE.
2/ FEDERAL RESERVE CREDIT CONSISTS OF FEDERAL RESERVE HOLDINGS OF SECURITIES, LOANS. FLOAT
ASSETS. ADJUSTED FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACTING TREASURY
g|POSITS 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

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

BILLIONS OF DOLLARS

lSZfi
NOV.

24

BILLIONS OF DOLLARS

MILLIONS
731.0
735.1
737.6
739,7
740.3

JJJJLL
5

m

9

IT 91

14 2* 11 25 8© 24

JAN

1 Z\

§ It

2 86 -90 34 M H SB

FEB

JUL

22

n

<* 2C

.5

OCT

AU©

r10V

1 IS 29 12 29

LATEST DATA PLOTTED WEEK B©3NS* DECEMBER 29, 1976
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ M.S RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR KEKS ENDING*
12/31/75

3/31/76

5/26/76

6/30/76

7/26/76

12.0
10.7
10,9
10.7
10,6
11.2
11.2
11.3

9.7
10,3
10.2
10,0
11.0
11.0
11.1

8.4
8,9
8.9
10.5
10.5
10.8

10.9
10.3
12.1
11.7
11.9

9.4
12.0
11.6
11.8

a/i/re

9/29/76 10/27/76

TO THE AVERAGE
OF FOUR WEEKS
ENDING*
5/26/76
6/30/76
7/28/73
9/ 1/76
63/29/73
1 <3/27/76
12/ 1/76
12/29/76

4

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

13.4
12.3
12.4

13.8
13,5

11.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml)

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
320 r---- 1------ 1-

BILLIONS OF DOLLARS
-- ------ ----- 320

BILLIONS
307.6
310.2
311.1
311.9
312.4

NOV
DEC
1975

JAN

FEB

MAR

APR

MAY

20

JUN

JUL

AUG

OCT

|«

3 17

1

15 2S 12 26

NOV

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 29, 1976
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 (Mi )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS Eh®ING«
3/31/76 5/26/76 6/30/76 7/28/76
9/1/76 9/29/76 10/27/76

12/31/75
TO THE AVERAGE
"EEKS

MW

5/26/76
6/30/76
7/28/76
9/ 1/76
9/29/76
10/27/76
12/ 1/76
12/29/76


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

7.7
5.9
6.3
6.2
5.3
6.4
5.6
5.8

6.7
7.1
6.8
5.4
6.9
5.8
6.1

3.1
4.0
2.6
5.1
4.1
4.6

6.9
4.0
7.0
5.3
5.8

2.1
6.6
4.6
5.3

7 2
4.2
5.2

7.2
7.5

3.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT

10.0 i—

—i 10.0

CORPORATE Aaa BONDS

PRIME Bi
LOAN RA

MUNICIPAL
MUNICI P>
BONDS sat

-s
j
fa

fa's

>_ /
_
COMMERCIAL PAPER

90 DAY CD‘SIMM

4.0

4.0

LI L 1 lull 1 III I I I I I I I t 1 III 1
0

7 21

S 19 2 16 30 13 27 12 28

NOV
DEC JAN
1975

FEB

MAR

8 23

APR

1 I I I 1 I I I 1 I I I I I II I 1
7 21

MAY

4 1«

JUN

N I _1 I I I

2 16 SO 13 27 10 24

JUL
1976

AUG

SEP

8 22

OCT

I I I

I I 1 I

5 19

3 17 31

NOV

I 1 it

DEC

14 28

JAN
1977

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: JANUARY 7, 1977

1977
NOV.

5
12
19
26
DEC.
3
10
17
24
31
JAN.
7 S
14
21
23

6

90 DAY
CO'S MM!

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDSMK

5.08
5.10
5.14
4.97
4.77
4.66
4.70
4.65
4.63
4.68

5.13
5.13
5.13
4.83
4.83
4.70
4.75
4.63
4.65
4.63

4.96
5.02
4.95
4.77
4.64
4.64
4.60
4.60
4.65
4.68

8.30
8.31
8.27
8.17
8.09
8.01
8.00
7.96
7.91
7.89

6.34
6.39
6.26
6.16
6.03
5.96
5.95
5.93
5.83
N.A.

: ** ***

* AVERAGES OF RATES AVAILABLE.
Wt BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS. THURSDAY DATA.
*** 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

0

SELECTED SHORT-TERM

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

DISCOUNT RATE

THREE-MONTH TR
BILL MARKET Yl

FEDERAL FUNDS RATE

T 21 5 19
NOV DEC
1975

2T

2 16 30 IS

FEB

12 28

MAR

9 23

7

21

MAY

4 16

2 16 30 13 27

JUN

AUG

10 24

6 22

SEP

S 19

NOV

3 17 31

14 2$

DEC

1976
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING# JANUARY 7, 1977

1977
NOV.

5

12
19
26
DEC.
3

10
17
24
31
JAN.

3-MONTH
BILLS

t-YEAR
TREASURY
BILL

3-5 YEAR
GOVERNMENT
SECURITIES

LONG-TERM
GOVERNMENT
SECURITIES

4.83
4.92
4.80
4.60
4.42
4.41
4.33
4.27
4.34
4.45

5.12
5.19
5.05
4.79
4.66
4.66
4.66
4.60
4.62
4.71

6.51
6.55
6.44
6.09
5.92
5.94
5.99
5.96
5.98
6.05

7.57
7.57
7.58
7.44
7.31
7.22
7.23
7.18
7.11
7.10

FEDERAL
FUNDS**

7 ***
14

TREASURY

5.06
4.98
5.02
4.90
4.78
4.67
4.68
4.63
4.69
4.47

21
28

* AVERAGES OF RATES AVAILABLE.
** £F,^!^AY 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 GOVERNMENT SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS.

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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

NET TIME DEPOSITS
ALL COMMERCIAL BANKS
AVtKAGES OF DA SLY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
- ------ -----i 435
-

455 r---------1-------------1-----

NOV.

24

423,4
426.4
427.9
427.9

5 1»

NOV

DEC
1975

JAN

FEB

MAR

APR

MAY

2 16 30 14 28 11

JUN
JUL
19'

25

6 22

6 20

3 17

OCT

AUG

NOV

1

15 20 12 26

LATEST DATA PLOTTED WEEK ENDINGi DECEMBER 29, 1976
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

T,,£

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING*
12/31/75
3/31/76 5/26/76 6/30/76 7/28/76
9/1/76 9/29/76 10/27/76
TO THE AVERAGE
OF FOUR WEEKS
ENDING.
5/26/76
6/30/76
7/28/76
9/ 1/76
9/29/76
10/27/76
12/ 1/76
12/29/76


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

15.6
14.7
14.7
14.5
14.9
15.2
15.6
15.7

12.2
12.6
12.9
13.7
14.3
15.0
15.1

12.7
12.6
14.0
14.6
15.6
15.7

13.9
15.2
15.9
16.7
16.7

15.3
16.2
17.0
16.9

18.3
16.7
18.2

18.6
18.1

18.0

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS
240 -----1------ ,--

BILLIONS OF DOLLARS
- ----- -t---- 240
-

BILLIONS
NOV.

24

230.7
230.4
231.2
231 „ 5

JLUUULU Ji-U-LUJ 1 i I I 1 I I I I I
5 19

3 17 31

NOV
DEC
1975

14 2* 11

JAN

25 IQ

FEB

MAR

7 21

S

APR

24

1MY

IS

?

;>0 U £8 It JS

JIN
Jtil.
1976

AUG

6 22
SEP

6 20

3 17

OCT

NOV

1

15 29 12 26

LATEST DATA PLOTTED WEEK S®INGs DCCMER 2
CURRENT DATA APPEAR IN 1N£ BOARD OF GOVERNORS* R.CS RELEASE.
7.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDINGi
12/31/75

3/31/76

5/26/76

6/30/7©

6.2
4.2
4.9
4.9
3.7
5.2
4.3
4.6

5.5
6.5
6. 1
4.1
6.2
4.8
5.2

2.1
3.0
0.9
4.2
2.8
3.6

6.9
2.7
6.7
4.4
5.0

7/23/73

9/1/76

9/29/76 10/27/76

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
5/26/76
6/30/76
7/28/76
9/ 1/76
9/29/76
10/27/76
12/ 1/76
12/29/76


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

>* • '
-0.3
5.8
3.2
4.2

6.4
2.7
4.1

"■ '

"...

'

6.8
7.4

* ' ""

2.0

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
86
84
82
80
78
76
74
72
70
68
66
64

62
60
5 19

3 17 31

14 21 II

JAN

7 21

5 19

APR

25 10 24

FEB

MAY

1975

2 16 90 14 28 11

25

8 22

1976

6 20

3 17

OCT

NOV

1

15 29 12 28

1977

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 29. 1976
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
NOV.

3
10
17
24
DEC.
1
8
15
22
29
JAN.
5
12
19
26

CERTIFICATES CERTIFICATES
OF DEPOSIT
OF DEPOSIT
NOT SEAS. ADJ. SEAS. ADJ.
62.7
62.5
62.7
63.0
63.4
63.7
63.8
64.1
65.3

61.3
61.5
62.0
62.4
62.7
63.1
63.4
63.7
64.8

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
1 «
ISZX MILLIONS

5 19

3 17 31

14 26 11 25 10 24

JAN

7 21

5 19

2 16 30 14 28 11 25

APR

FEB

MAY

JUL

8 22

6 20

3 17

OCT

AUG

NOV

1

15 29 12 28

LATEST DATA PLOTTED WEEK ENDING. JANUARY 5, 1977

BUSINESS LOANS

( COMMERCIAL
BILLIONS OF DOLLARS
124 ----------- -

AND

INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
- ------ ----- 124
-

_ COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE OF
— THE FOUR WEEKS ENDING
— DECEMBER 29. 1976 FROM
— THE FOUR WEEKS ENDING. .
~ OCT.
— SEP.
— SEP.
— JUL.
_ JUN.
MAR.
— DEC.

27,
1976
29,
1976
1,
1976
28,
1976
30,
1976
31, 1976
31, 1975

MILLIONS

16.1
18.5
15.8
11.9.
8.1
1.2
-3.3
'

NOV. 24

Mill
5 19

NOV

5 17 51

DEC
1975

14 28 11

JAN

FEB

25 10 24

MAR

7 21

5 19

APR

MAY

2 16 50 14 28 11

JUN

JUL

AUG

25

8 22

6 20

5 17

OCT

NOV

1

15 29 12 26

19

LATEST DATA PLOTTED WEEK ENDING: DECEMBER 29. 1976


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

FEDERAL RESERVE BANK OF ST. LOUIS
P. 0. BOX 442
ST. LOUIS, MISSOURI 63166

FIRST CLASS MAIL
U S. POSTAGE

PAID
RETURN POSTAGE GUARANTEED

PERMIT 444

fIRST CLASS III AIL

PRESORTED
I

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

COMPOUNDED ANNUAL RATES OF CHANGE,
AVERAGE OF THE FOUR WEEKS ENDING
DECEMBER 29, T976 FROM THE FOUR
WEEKS ENDIN6:
CREDIT
CREDIT
PROXY

■E

560

5

550

im£L ADJUSTED
11.8
12.6

1976
1976

10.0
540

1975
530

CREDIT PROXY ADJUSTED 1/

520

510
PILLIONS

CREDIT PROXY

CREDIT
PROXY

CREDIT
PROXY
ADJUSTED

500

525.0
529.3
530.2
530.6
529.3

5

19

3

17 31

14 28

11

25

10 24

7 21

5

19

2

1975
LATEST DATA PLOTTED WEEK ENDING: DECEMBER 29,

16 30

14 28

11

1976

25

8 22

6 20

3 17

490

537.1
536.2
539.1
540.6
538.2

1

480

15 29 12 26

1977

1976

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.9 RELEASE.
1/ INCLUDES MEMBER BANK DEPOSITS, BANK-RELATED CQfcirfERCIAL PAPER, EURODOLLAR BORROWINGS OF
U.S. BANKS, AND CERTAIN OTHER NONDEPOSIT SOURCES.

12

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Federal Reserve Bank of St. Louis

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS