Full text of U.S. Financial Data : Week Ending: June 28, 1978

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

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Week ending: June 28, 1978
The commercial bank prime rate has been increased by
lints since early May of this year. One way to view
ls'increase in perspective is to consider the revenue and cost
So ^>arik%Tgrom lending additional funds at the prime rate when
ther" fWdrs3are raised by issuing large negotiable certificates of
deposit. An important consideration in examining the total cost
pf issuing certificates of deposit is the reserve requirements
on time deposits. For time deposits with initial maturities of
30-179 days, reserve requirements are 3 percent on the first $5
million and 6 percent on the rest.
For most large banks,
required reserves rise by 6 percent of the value of an increase
in short-term certificates of deposit.
To illustrate how reserve requirements influence the
total cost to banks of issuing additional certificates of
deposit, suppose a bank issues a $100,000 certificate of deposit
at an 8 percent interest rate with a maturity of less than 180
days. On an annual basis the interest cost is $8,000.
The bank
is required to increase its reserves by $6,000, leaving $94,000
to lend.
The $8,000 in annual interest is 8.51 percent of the
$94,000, which to the bank is the effective interest rate for
obtaining loanable funds.
The table below presents the interest rate on 90-day
certificates of deposit, adjusted for reserve requirements (see
market rate adjusted),
and the prime rate since late March of
this year. The spread between those rates has narrowed since
late March, when short-term market rates began rising sharply.
Prime Rate Compared to the Cost of Issuing Short-Term
Negotiable Certificates of Deposit
Interest Rate on 90-day
Certificates of Deposit
Market
Period
Rate
(Average for we ek ending)
1978 March 31
April 7
14
21
28
5
May
12.
19
26
2
June
9
16
23
30*

Market Rate
Adjusted

6.86 %
6.95
6.99
6.94
7.14
7.24
7.27
7 .45
7 .48
7.52
7.54
7.71
7.95
8.04

7.30 %
7.39
7.44
7.38
7.60
7.70
7.73
7.93
7.96
8.00
8.02
8.20
8.46
8.55

Prime
Rate
8 %
8
8
8
8
8
8.25
8.25
8.25
8.50
8.50
8.50
8.75
8.75

Difference
0.70 %
0.61
0.56
0.62
0.40
0.30
0.52
0.32
0.29
0.50
0.48
0.30
0.29
0.20

* Average of rates available.

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

Prepared by Federal Reserve Bank of St. Louis
Released: June 30, 1978

2

MONETARY BASE
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

1979.

BILLIONS OF DOLLARS
MO

BILLIONS

— MAY
135.5
135.3
136. 1
136.6
136.5

S

SEP

IB

2

16 30

M 28

DEC

OCT

11

JAN

25

8 22

8 22

5

IB

3

17 51

FEB

I4

28

JUN

12

26

JUL

1978
LATEST DATA PLOTTED WEEK ENDING: JUNE 28, 1978
THE MONETARY BASE CONSISTS OF MEMBER BANC RESERVES AT THE FEDERAL RESERVE BANCS AN) CURRENCY
IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND !N THE VAULTS OF COMMERCIAL BANKS), ADJUSTED
FOR RESERVE REQUIREMENT RATIO CHANGES AND SHIFTS IN THE SAME TYPE OF DEPOSITS BETWEEN BANCS
WHERE DIFFERENT RESERVE REQUIREMENT RATIOS APPLY. THE MAJOR SOURCES OF THE MONETARY BASE ARE
FEDERAL RESERVE CREDIT AN) THE GOLD STOCK. DATA ARE COMPUTED BY THIS BANC. A DETAILED DE­
SCRIPTION OF THE MONETARY BASE IS AVAILABLE FROM THE FEDERAL RESERVE BANC OF ST. LOUIS.

MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
6/29/77

9/28/77 11/30/77 12/28/77

1/25/78

3/1/78

3/29/78

4/26/78

TO THE AVERAGE
OF FOUR WEEKS
END 1NGi
11/30/77
12/28/77
1/25/78
3/ 1/7B
3/29/78
4/26/78
5/31/78
6/28/78

10.2
9.7
10.6
10.5
9.7
9.5
9.6
9.8


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

9. 1
10.7
10.5
9.3
9.2
9.3
9.6

1 1.6
10.9
9.0
8.8
9.0
9.4

12.6
9.6
9.2
9.3
9.8

6.8
7.2
7.9
8.7

5.5
7.1
8.3

9.0
10.0

10.8

PREPARED BY FEDERAL RESERVE BANC OF ST. LOUIS

MULTIPLIER v
ADJUSTED FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
?.e

RATIO
2.9

MULT IPLIER
h—

X

2.5

2.5

JJilft
MAY

RATIO

IS

if
111

J-LLL J 1 1

1 1 1 1 -1.1 1

1 1 1

1111 -in
LATEST DATA PLOTTED WEEK END I MGt JUNE 21, 1978

mi

Llll -11.11

118
1 16
114

-

1:558

ml i i i i 1 i i i 1 i i i!

BILL IONS OF DOLLARS
122
_
1
1-------- 1---------120

2.3

1:98
I#

•

BILLIONS OF DOLLARS
122

COMPOUNDED ANNUAL RAT ES
-----OF CHANGE, AVERAGE OF
THE FOUR WEEKS END INC
“ JUNE 28, 1978 FROM
— THE FOUR WEEKS ENDING
:
- APR. 26,
1978 15.0
MAR. 29,
1978 11.7
— MAR.
1, 1978
9.4
- JAN. 25,
1978 10.6
DEC. 28,
1977 12.3
---- SEP.
1977 11 fi
_ JU N. 29, 1977
11.8

-

120
-

118
_ AD* USTED -EDERA L RES ERVE :red i t

_____ £

r------ '

71

-

116
-

✓—- . r

114
-

112
110

-

-

-

y

108

1313
MAY

106
v/
104

IJ ! 8:!

JUN

- •, JLj
‘in

if
28

..nil

111

JUN

JUL

-LL1_L

111

111

mi

111

J_LL

111

AUG
SEP
1977

OCT

NOV

DEC

JAN

FEB

8 22

MAY

LATEST DATA PLOTTED WEEK ENDING: JUNE 28,

1111
8 22

MAR

-lllI-11
5

10

APR
1978

—

BILLIO

3

i
1

17 31

106

7'A
_

7.4

i 1 1 1 1 1

MAY

14 28

JUN

1 1 1

i

12 26

JUL

1978

1/ RATIO OF MONEY STOCK (Ml) / MONETARY BASE.
FEDERAL RESERVE
CONSISTS
OF FEDERAL
OF .g'^BTRACf
SECURITifs IMG^TTR^ASURY7
1 nikK fi aat
AMO.OTMEK
ASSETS.CREDIT
ADJUSTED
FEDERAL
RESERVE RESERVE
gRg HOLDINGS
^COMPUTED


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

-------------------------BANKS
TED BY THIS BANK.
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

108

104

4

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

BILLIONS OF DOLLARS
850 ci--------1------------- 1-----

BILLIONS OF DOLLARS
---------------------------- =1 850

840.3

—

845

■=

835

—

765

840.9
839.7

SEP

OCT

DEC

JAN

FEB

1977

1978

LATEST DATA PLOTTED WEEK ENDING: JUNE 21, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS1 H.6 RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE,
9/21/77 11/23/77 12/21/77

AVERAGE OF FOUR WEEKS ENDING:

1/18/78

2/22/78

5.8
7.0
7.8
8.3

7.4
8.4
8.9

3/22/78

4/19/78

TO THE AVERAGE
OF FOUR WEEKS
END ING t
11/23/77
12/21/77
1/18/78
2/22/78
3/22/78
4/19/78
5/24/78
6/21/78

9.5
9.0
9.0
8.7
8.3
8.4
8.6
8.7


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

7.4
7.9
7.6
7.2
7.5
7.9
8.1

7.7
7.2
6.7
7.3
7.8
8. 1

7.8
6.9
7.6
8. 1
8.5

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK ( Ml )
AVERAGES OF DAILY FIGURES
5tAi>UNALLY ADJUSTED

BILLIONS OF DOLLARS
360 ---------- 1------------- 1-----

BILLIONS OF DOLLARS
-------- ---------------------- 360

billions

__ MAY
351.5
351.7
351.3

II I I I I I I
15 29 13 27

MAY

JUN

JUL

10 24

7

AUG

SEP

21

5

19

OCT

2

16 30

14 28

NOV

DEC

11

JAN

25

8 22

8 22

FEB

JUN

1977

JUL

1978

LATEST DATA PLOTTED WEEK ENDING: JUNE 21, 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:
9/21/77 11/23/77 12/21/77

1/18/78

2/22/78

3/22/78

4/19/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/23/77
12/21/77
1 / >8/78
2/22/78
3/22/78
4/19/78
5/24/78
6/21/78

8. 1
7.9
8.3
7.5
6.9
7.5
8.3
8.4


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

6.3
7.4
6.3
5.5
6,6
7.8
8.0

8.9
6.5
5.2
6.9
8.4
8.6

6.3
4.7
6.9
8.6
8.9

2. 1
5.7
8. 1
8.5

7.5
10.3
10.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

CORPORATE

Aaa

PERCENT

PRIME BANK
LOAN RATE

BOfCS

90 DAY CD’Snewt

COMMERCIAL PAPER

3

MAY

JUN

JUL

AUG

SEP
1977

OCT

NOV

DEC

JAN

FEB

MAR

APR
1978

19

MAY

2

18 30

JUN

14

26

JUL

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING; JUNE 30, 1978

1978
MAY

5
12
19
26
JUNE
2
9
16
23
30 *
JULY
7
14
21
28

90 DAY
CD' S *06*
* ***

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDS XX

7.24
7.27
7.45
7.48
7.52
7.54
7.71
7.95
8.04

6.99
7.05
7.15
7.21
7.31
7.45
7.66
7.74
7.79

7.18
7.27
7.35
7.45
7.48
7.54
7.74
7.89
7.94

8.62
8.65
8.69
8.76
8.79
8. 74
8.72
8.76
8.83

5.98
5.99
5.98
6. 18
6. 19
6. 18
6. 16
6.26
N. A.

* AVERAGES OF RATES AVAILABLE.
H6* BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS. THURSDAY DATA.
*** SEVEN-DAY AVERAGES OF SECOMJARY 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

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

percent

3-5 YEAR
TREASURY SECURITIES

FEDERAL FUM5S RATE

THREE-MONTH TREASURY
BILL MARKET YIELD
DISCOUNT RATE

1

15 29

12

26

9

23

7

4

21

18

2

16 30

13 27

10 24

10 24

7

21

5

19

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: JUNE 30,

1978
MAY

5
12
19
26
JUNE
2
9
16
23
30 *
JULY
7
14
21
28

FEDERAL
FUNDS %*** ***
7.2 7
7.32
7.34
7.43
7.36
7.47
7.49
7.53
7.78

3-MONTH
TREASURY
BILL

16 30

28

1978

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

6.94
6.99
7.01
7. 14
7.16
7.10
7.12
7.23
7.40

7.16
7.25
7.32
7.38
7.37
7.36
7.46
7.64
7.71

8.02
8.09
8.10
8. 1 6
8. 19
8. 18
8.22
8.39
8.48

8.31
8. 38
8.36
8.43
8.39
8.40
8. 48
8.54

* AVERAGES OF RATES AVAILABLE.
** S^IN-pAYAVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.9 RELEASE.
*** NEW ISSUE RATE

TR^lu™ B?!x‘YIELDS,,ofiSDIScSuST',Blsil/RE


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

14

6-MONTH
TREASURY
*bibk

bill

6.38
6.37
6.32
6.51
6.62
6.62
6.65
6.79
6.90

2

^ ™ FQ>ERAL "ESERVE

°F ST' L0UIS'

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

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

BILLIONS OF DOLLARS
500 r--------- 1------------- ■-----

BILLIONS OF DOLLARS
-------- ------------------- Z! 500

BILLIONS
486.5
487.3
488.8
489.3
489.6
490.3

11.1 1 I II
18

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

3

17 31

MAR

LATEST DATA PLOTTED WEEK ENDING* JUNE 21,
CURRENT DATA APPEAR

M

12 20

JUN

1977

JUL

1978

IN THE BOARD OF GOVERNORS'

H.6 RELEASE.

* MET TIME DEPOSITS ARE DEFINED AS* SAVINGS DEPOSITS, TIME DEPOSITS OPEN ACCOUNT p>i
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERT IFI CATES OF DEPOSIT ISSUFn IN
DENOMINATIONS OF 1100,000 OR MORE BY LARGE WEEKLY REPORTING COWERCIAL BANKS.

rnr

T,ME

NET TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
6/22/77

9/21/77 11/23/77 12/21/77

1/18/78

2/22/78

3/22/78

8.6
8.0
7.7
8.2

7. 1
7.0
7.8

6.8
7.9

4/19/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING*
11/23/77
12/21/77
1/18/78
2/22/78
3/22/78
4/19/78
5/24/78
8/21/78

10.5
9.8
9.6
9.5
9.3
9. 1
8.9
9.0


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

8.2
8.2
8.5
8.4
8. 1
8.0
8.2

7.0
7.9
7.8
7.6
7.5
7.9

8.9
8.5
8. 1
7.8
8.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS
265 ---------- 1------------- ,-----

BILLIONS OF DOLLARS
-------- ---------------------- 265

BILLIONS
255. 1
255.0
258.9
258.9
258.5

I I I I
I

15 29

13 27

10 24

7

21

5

19

2

16 30

M 28

II

JAN

25

8 22

8

22

5

19

3

17

31

14 28

12 26

FEB
1978

LATEST DATA PLOTTED WEEK ENDING: JUNE 21, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

DEMAND DEPOS T COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
6/22/77

9/21/77 11/23/77 12/21/77

1/18/78

2/22/78

3/22/78

4/19/78

7.2
10.3
10.4

16.0
14.3

13.2

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/23/77
12/21/77
1/18/78
2/22/78
3/22/78
4/19/78
5/24/78
6/21/78

7.6
7.2
7.6
6.5
5.7
6.6
7.5
7.8


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

4.8
6. 1
4.7
3.7
5.4
6.7
7.1

7.9
4.8
3.3
5.7
7.5
7.9

4.5
2.6
5.8
7.9
8.3

-0.7
4.4
7.3
7.9

PREPARED BY FEDERAL RESERVE BAM( OF ST. LOUIS

9

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions of dollars

billions of dollars

92.2
92.6
92.8
92.9

4

18

1

15 20

15 27

10 24

7 21
SEP

5 10
OCT

2

16 30

14 28 11 25
8 22
DEC
JAN
FEB

8 22

5 10

JUN

JUL

1977
LATEST DATA PLOTTED WEEK ENDING: JUNE 21, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
6/22/77

9/21/77 11/23/77 12/21/77

1/18/78

2/22/78

3/22/78

4/19/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
11/23/77
12/21/77
1/18/78
2/22/78
3/22/78
4/19/78
5/24/78
6/21/78

9.8
10.0
10.3
10.4
10.3
10.0
10.2
10.2


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

10.6
11.0
1 1.0
10.7
10.3
10.5
10.5

11.7
11.4
10.8
10.2
10.5
10.5

11.6
10.8
10.0
10.5
10.5

10. 1
9.3
10.0
10. 1

8.2
9.7
9.8

10.0
10.1

11.3

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS IN THE NATION
AVERAGES OF DAILY FIGURES

: DOLLARS
1978
MAY

24
31
7

JUN.

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

MILLIONS
701
1399
646
1194

4

18

MAY

1

IS 29

JUN

13 27

JUL

10 24

7 21

5

AUG

SEP

OCT

10

2

16 30

NOV

14 28

DEC

11

25

JAN

8 22

FEB

8 22

5

MAR

10

3

17 31

APR

14

JUN

JUL

I97a

LATEST DATA PLOTTED WEEK ENDING! JUNE 28, I9T8

BUSINESS LOANS

( COMMERCIAL AND INDUSTRIAL )

BILLIONS OF DOLLARS
14? ---------- i------------- ■-----

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SfcASUNALLY ADJUSTED

BILLIONS OF DOLLARS
------------------------------- 142

COMPOUNDED ANNUAL RATES
— OF CHANGE, AVERAGE OF _ THE FOUR WEEKS ENDING
JUNE 21- 1978 FROM
“THE FOUR WEEKS END ING* '
__APR. 19,
MAR. 22,
— FEB. 22,
— JAN. 18,
_ DEC. 21,
SEP. 21,
JUN. 22,

1978
1978
1978
1978
1977
1977
1977

27.7
24.3
23.7
"" ~
20.7

'

MAY

17
135,686
135,017
134,509

10

24

7 21

2

16 30

14 28

DEC

11

JAN

25

8 22

8 22

HIM
5 10

3

l.J 1 1 I

17 51

14 28

12 26

FEB

1977
LATEST DATA PLOTTED WEEK ENDING: JUNE 21, 1978


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

12
CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL

BILLIONS OF DOLLARS

BANKS

WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

iILL IONS OF DOLLARS

BILLIONS

I I I I
IS 2fl 13 27 10 24

7 21

3 18

2 18 30 14 28 1

LATEST DATA PLOTTED WEEK ENDING. JUNE 21.

22

8 22

5 19

3 17 31

H M 12 28

I9T8

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' M.6 RELEASE.
NEGOTIABLE TIME CERTIFICATES OF DEPOSIT
WEEKLY REPORTING COMMERCIAL BANKS.


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

ISSUED

IN DENOMINATIONS OF *100,000 OR MORE BY LARGE
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS