View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

#^//V/l /V£7/>4

Week ending: July 16, 1980
3<0'oh§
The sharP decline in the prime lending rate (page 6)—from 20 percent in April
Hi BtSiHHb ercent currently—reflects the general decline in interest rates during this period
—
and, consequently, the decreasing cost to banks of obtaining additional loanable funds.
Because large, negotiable certificates of deposit (CDs) are an important source of
additional funds to banks, changes in the interest rate on CDs have a substantial effect on
the costs to banks of obtaining additional loanable funds.
When calculating the cost of additional loanable funds, a bank must consider not
only the explicit interest cost of issuing new CDs, but also the reserve requirements on
such funds. To calculate the "effective" rate on new CDs for member banks, the market
interest rate on CDs is divided by one minus the appropriate reserve requirement. The
member bank reserve requirement on time deposits with initial maturities of 30-179 days
is 6 percent for time deposits in excess of $5 million. From November 1978 until mid-July
of this year, an additional 2 percent reserve requirement on time deposits in
denominations of $100,000 or more was in effect. Also, some banks have been subject to
varying marginal reserve requirements on managed liabilities during the period used in the
table below. As demonstrated in the table, the effective cost of obtaining additional
loanable funds has declined markedly since April. This decline reflects the drop in the
interest rate on 90-day CDs and recent changes in reserve requirements.
Interest Rates on 90-Day Certificates of Deposit
Effective rate_________

Period: Week ending
April

11
18
25

May

2

June

9
16
23
30
6
13

20
July

27
4

11
18

Market rate*
17.65 %
16.62
14.79
12.89
10.26
9.70
9.43
8.43
8.92
8.34
8.25
8.41
8.70
8.63
8.72

With marginal
reserve
requirement**
21.52 %
20.27
18.04
15.72
12.51
11.83
11.50
9.69
10.25
9.59
9.48
9.67

10.00
9.92
9.28

Without marginal
reserve
requirement***
19.18 %
18.07
16.08
14.01
11.15
10.54
10.25
9.16
9.70
9.07
8.97
9.14
9.46
9.38
9.28

*
**

All rates represent five-day averages for the week ending date shown.
Because of changes in regulations, the reserve requirement used for this category was
eighteen percent effective the week beginning April 3, thirteen percent effective
the week beginning May 22, and six percent effective the week beginning July 10.
*** Basedon areserve requirement of eight percent, except for the week beginning
July 10 when a rate of six percent is used.


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

Prepared by Federal Reserve Bank of St. Louis
Released: July 18, 1980

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

164 ------------ .--------- ,-----

----- ----------------------

BILLIONS

JUN.

158.6
159.4
159.8
159.5
160.2
160.5

— JUL.

2

16 30

MAY

13

JUN

27

11

JUL

25

8 22

5

19

AUG
SEP
1979

3

17 31

OCT

14 28

NOV

LATEST DATA PLOTTED WEEK ENDING: JULY 16.

12 26

DEC

9 23

JAN

6 20

5 19

2

FEB

MAR

APR
1980

16 30 14 20 M

MAY

25

9 23

JUN

I960

THE ADJUSTED MONETARY BASE CONSISTS OF: II) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS, (2) CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF
C0U4ERCIAL BANKS). AND (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 BANK.

ADJUSTED MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
7/18/79

10/17/79 12/19/79

1/16/80

2/13/80

3/19/80

4/16/80

5/14/80

7.3
5.8
5.6
6.2
6.7

6.9
6.3
6.8
7.3

3.8
5.5
6.4

6.8
7.6

8.7

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/19/79
1/16/80
2/13/80
3/19/80
4/16/80
5/14/80
6/18/80
7/16/80

9.0
9.4
8.6
8.9
8.2
7.9
7.9
8.0


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

8. 1
7.0
7.8
7.0
6.7
6.9
7.2

7.4
8.6
7. 1
6.7
7.0
7.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

164

ADJUSTED BANK RESERVES l/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

52

1

1

1980
-

— JUL

4
11
18
25
2
9

BILLIONS
48.8
48.0
48.4
48.7
48. 1
48. 6

-

“

1

---------- ------------

50

JUN.

BILLIONS OF DOLLARS

1

rV

/

r>

--- s/

ff

jA

'V

4 -A V

A
V

-

-

j 111
li-L 111 nil
2 16 SO IS 27 II 3
AUG
MAY
JUN JUL

111

.LULL

1 1 1

i i i

SEP

OCT

NOV

DEC

ILL 111

1 1 IL

FEB

1111

APR
1980

MAR

1979

1 1 1

3
Llll 1 Li-L
B 2S

8 11 5
MAY
JUN

LATEST DATA PLOTTED WEEK ENDING: JULY 9. 1980

«'

“°"eR BA*RESERVES"

ADJUSTED BANK RESERVES
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING-.
7/M/79

10/10/79 12/12/70

1/9/80

2/8/80

3/12/80

4/9/80

4.9
4.3
1 .9
2.5
3.0

8.8
4.3
4.3
4.5

-1.3
0.8
I .9

S/7/80

0.0
1.7

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/12/79
1/ 9/80
2/ 6/80
3/12/80
4/ 9/80
5/ 7/80
6/11/80
7/ 9/80


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

9.0
9.4
7.3
8.2
7.7
6.4
6.2

6. 1

1 1 .7
7.4
8.9
7.9
6.0
5.8
5.8

2.8
6.9
5.9
3.7
3.8
4.1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

(

3

4

MONEY STOCK ( Ml A )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
385

fiLLLLQNS
369 7
369-?
3/2.6
371.6
37 1 I
3/1.8

5

JUN

18

3

17 31

14 28

12

26

8

23

6 20

5

19

2

16 30

JUL

14

MAY

28

I 1

25

8 23

JUN

1980
LATEST DATA PLOTTED WEEK ENDING: JULY 9,

I960

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
MIA CONSISTS OF CURRENCY AND COIN PLUS COMMERCIAL BANK DEMAND DEPOSITS HELD BY THE NONBANK
PUBLIC EXCLUDING THOSE HELD BY FORE.GN BANKS Ah® OFFICIAL INSTITUTIONS.

MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE
7/11/7S

10/10/79 12/12/79

1/9/BO

AVERAGE OF FOUR WEEKS ENDING:
2/6/80

3/12/80

4/9/80

1.6
-4.7
-2. 1
0.4

-11.4
-5.5
-1.5

-5.6
-0.4

5/7/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/12/79
1/ 3/bO
2. 6/80
3,12/80
4/ */80
5/ /'80
6/,ifl0
7, a/80

5.0
5.9
5.3
5.5
4.4
2.2
2.4
3.2


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

5.0
4. 1
4.8
3.2
0.2
0.9
2.0

6.0
6.5
3.6
-0.7
0.3
1.8

4.6
1.5
-3.3
-1.5
0.5

8. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( M1B )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

405
81LLI QMS
— JUN.

388. 7
388.6
392.4
391.4
390.8
392.3

JUL .

I I I I
2

16 50

I I I I
13 27

II

25

0 22

5

10

3

17 31

14 20

12 26

9 23

6 20

5

FEB

MAR

19

2

16 30

14

28

II

25

9 23

1980
LATEST DATA PLOTTED WEEK ENDING-. JULY 9,

1980

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

MONEY STOCK ( MlB)
COMPOUNDED ANNUAL RATES OF CHANGE
7/11/79

10/10/79 12/12/79

1/9/80

AVERAGE OF FOUR WEEKS ENDING:
2/6/80

3/12/80

4/9/80

5/7/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/12/79
1/ 9/BO
2/ 6/80
3/12/80
4/ 9/80
5/ 7/80
6/11/80
7/ 9/80

5.8
6.9
6.2
6.5
5.5
3.4
3.5
4.4


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

5.7
4.7
5.5
4.2
1 .4
1.9
3.2

7. 1
7.6
5.0
0.9
1.6
3.4

5.3
2.7
-1.7
-0.3
2.0

3.2
-2.8
-0.7
2.0

-9.1
-4.0
0.2

-4.5
1.2

9.3

PREPARED BY FEDERAL RESERVE BANK OF ST.

5

LOUIS

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

PERCENT
21.0

21.0 c

—]

20.0

20.0

19.0
18.0

16.0

16.0

PRIME BANK
LOAN RATE

15.0
14.0

14.0

90 DAY CD’S

13.0
12.0

12.0
COMMERCIAL PAPER

CORPORATE

BONDS

Aaa

10.0

Cl PAL

2

16 30

14 28

II

25

8 22

7 21

JUN
1979

1980

90 DAY
CD’S

MAY

2
9
16
23
30
JUNE
6
13
20
27
JULY
4
1 1
18 *

PRIME
COMMERC 1 AL
PAPER Hi

PRIME
BANKERS’
ACCEPTANCES

CORPORATE
Aaa BONDS

CORPORATE
Baa BONDS

MUNICIPAL

12.89
10.26
9.70
9.43
8.43
8.92
8.34
8.25
8.41
8.70
8.63
8.72

1980

1

JUL

I 980

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING-. JULY 18,

12.31
9.92
9.32
9.06
8. 19
8.69
8.03
7.92
8.00
8.38
8.31
8.38

12.46
10.04
9.60
9.08
8.42
8.68
8.06
8.08
8.33
8.66
8.58
8.57

11.38
10.93
10.96
11.02
10.90
10.88
10.53
10.34
10.53
10.84
10.94
11.11

.3.68
13.20
13. 10
13.11
13. 10
12.92
12.82
12.60
12.48
12.66
12.61
12.70

7.96
7. 1 1
7.44
7.72
7.73
7.67
7.53
7.55
7.76
7.88
7.95
N.A.

bonds

mm

25

1________________

__

* AVERAGES OF RATES AVAILABLE.
BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONOS,
xea DATA ARE 4-MONTH COMMERCIAL PAPER RATES.
N.A. - NOT AVAILABLE


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

THURSDAY DATA,

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
20.0

20.0

19.0
18.0
17.0
16.0

FEDERAL FUNDS RATE
15.0

15.0

14.0

14.0
13.0

3-MONTH V
TREASURY BILL

12.0
I I .0

I I .0

10.0

10.0
5-YEAR
TREASURY SECURITIES

9.0
8.0
7.0
6.0

1111

1111

0

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: JULY 18,

1980
MAY

2
9
16
23
30
JUNE
6
13
20
27
JULY
4
1 1
18 X
25

FEDERAL
FUNDS KX

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY

1-YEAR
TREASURY
BILL

15.12
12.96
10.85
10.71
9.46
10.74
9.68
8.99
9.08
9.41
9. 26
8.98

10.47
9. 14
8.53
8.15
7.70
7.51
6.44
6.76
7.42
7.92
8.08
7.99

10.79
9.50
8.78
8.92
7.75
8. 17
6.94
6.66
7. 1 1
8. 10
8. 1 1
8. 1 1

9.99
9.00
8.72
8.34
8.03
7.91
7.23
7.30
7.65
7.86
7.91
7.95

1980

5-YEAR
TREASURY
SECURITIES
10.63
9.94
9.94
9.89
9.79
9.58
9.08
8.90
9.23
9.47
9.46
9.45

LONG-TERM
TREASURY
SECURITIES
10.51
9.94
10.20
10.22
10.13
10.08
9.64
9.45
9.74
10.05
10. 13
10.25

K AVERAGES OF RATES AVAILABLE.
** SEVEN-DAY AVERAGES FOR WEEK END ING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
Bn 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 BAf* OF ST. LOUIS

7

8

MULTIPLIERS!/
CURRENCY OF MONEY STOCK MEASURES 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

RATIO
MONEY MULTIPLIERS

PAim

1111 1.1111 1 I 1 1 I 1 1.1.
LATEST OATA PLOTTEO WEEK ENDING: JULY 9,

1980

BILLIONS OF DOLLARS
in ------------- 1--------- 1—

BILLIONS OF DOLLARS
—---------- ------------- m

COMPOUNDED ANNUAL RATES
OF CHANGE. AVERAGE ur
OF
ur i-nniiui:,
-----THE FOUR WEEKS ENDING
JULY 9, 1980 FROM
- THE FOGr WEEKS ENDING:

---- MAY
APR.
- MAR.
FEB.
- JAN.
OCT.
- JUL.

7, 1980
9, 1980
12, 1980
6, 1980
9, 1980
10, 1979
11, 1979

9.9
9.1
8.4
8.3
8.6
7.9
9.0

CURRENCY

ILLIQNS

I I I I I I 111 1 I
2

MAY

JUN

JUL

AUG
SEP
1979

OCT

LATEST DATA PLOTTED WEEK ENDING: JULY 9.

NOV

DEC

JAN

FEB

MAR

16 SO M 28

APR
1980

MAY

II

JUN

25

9 23

JUL

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 BAhK OF ST. LOUIS

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TTTT TTTT TTTT

280

r

M

l-LI_L.

V

7J

i\

TTTT

t______

r• —

7^

1 1

"T T T T j

=—i— —
I
1M
BILL
- JUN.
4 259. 3
ii
258. 5
18 261. 5
25
260. 5
-JUL.
2 259. 7
9
260. 2

-

1

1

M

“
rN

LL

M

1

1

l 1.1

!llu .1 IX .ILL 1111 -LLL 1 1 IJ 1. 1 1 1 1 1 1111
17 31 M 28 12 26
2

16 M

MAY

13 27

ION

II

111

1 til

i i i

1 1 1

mi

APR

111

MAY

JUN

i

JUL

22

I

AUG

JUL

SEP

OCT

NOV

DEC

JAN

1980

1979
LATEST DA IA PLOTTED WEEK ENDING: JULY 9,

I960

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.B RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
7/11/79

10/10/79 12/12/79

1/9/80

2/6/80

3/12/80

-0.4
-9. 1
-5.8
-2.7

-18.0
-10.4
-5.4

4/9/80

5/7/80

ru lilt AVtKAlyt
OF FOUR WEEKS
END 1 NG -.
12/12/79
1/ 9/80
2/ 6/80
3/12/80
4/ 9/80
5/ 7/80
6/11/80
7/ 9/80

3.4
4.5
3.5
4. 1
2.6
-0.5
-0. 1
0.9


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

4.4
2.7
3.7
1.6
-2.6
-1 .8
-0.4

3.8
5. 1
i .5
-4.4
-3.0
-1.0

2.9
-1 . 1
-7.6
-5.2
-2.6

-10.9
-4.2

7.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

280

10

SAV NGS PLUS SMALL TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUS ItU

BILLIONS OF DOLLARS
465 r-----------1----------1-----

BILLIONS OF DOLLARS
----------------------------“I 465

BILLIONS
453.6
454.6
455.7
456.0
457.7

JUL.

I I 1 I
2

16 30

13 27

II

25

8 22

5

19

3

17 31

14 28

NOV

12 26

9 23

6 20

5 19

2

IB 30 14 28 I I

25

9 23

DEC

1980
LATEST DATA PLOTTED WEEK ENDING: JULY 9,

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN 1100,000.

SAVING? PLUS SMALL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
5/7/80
4/9/80
1/9/80
2/6/80 3/12/80
7/11/79 10/10/79 12/12/79
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
12/12/79
1/ 9/80
2/ 6/80
3/12/80
4/ 9/80
5/ 7/80
7/ 9/80

10. 1
9.4
9.0
8.5
9.0
9. 1
9.0
9.3


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

8.3
7.9
7.3
8.3
8.6
8.5
8.9

6. 1
5.8
7.6
8.2
8.2
8.7

6.0
8.2
8.8
8.7
9.2

8.9
9.4
9.1
9.6

12. 1
10.6
10.9

9.3
10.2

9.9

PREPARED BY FEDERAL RESERVE BANK OF ST.

LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS
1980
JUN.

IN THE NATION

AVERAGES OF DAILY FIGURES

billions of dollars

billions of dollars

MILLIONS
11

NOV

FEB

DEC

MAR

1979
LATEST DATA PLOTTED WEEK ENDING: JULY 16, 1980

BUSINESS LOANS

(COMMERCIAL AND
BILLIONS OF DOLLARS
168 ---------- i---------- 1--------

INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
------------------- ----------- 168

COMPOUNDED ANNUAL RATES
“OF CHANGE. AVERAGE OF *
“ THE FOUR WEEKS ENDING
— JULY 9, 1980 FROM
- THE FOUR WEEKS ENDING:
“MAY
7,
“ APR. 9,
— MAR. 12,
- FEB. 6,
— JAN. 9,
- OCT. 10,
_ JUL. II,

1980
1980
1980
1980
1980
1979
1979

-4.0
-6.6

-4.9

Ml LL I or
JUN.

4

JUL.

158,218
157,757

2

157,798

I

JUN

JUL

15 29

AUG

12 26 10 24

SEP
1979

OCT

7 21

5 19

NOV

DEC

LATEST DATA PLOTTED WEEK ENDING: JULY 9,


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

2

IS 50

JAN

IS 27

FEB

12 26

MAR

9 23

1 J. LLLU-l.i l 1 I 1 I I I
7 21

APR
MAY
1980

2

JUN

16 30

JUL

13 27

AUG

I960
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

12
LARGE

ALL

TIME

DEPOSITS

COMMERCIAL

BANKS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

ILL IONS OF DOLLARS

: i 11.1 LLi

1979
LATEST DATA PLOTTED WEEK ENDING:
CURRENT DATA APPEAR

'980
JULY 9.

1980

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