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■

■

•
RESEARCH LIBRARY
l/llv/l <t!i0 &
ww SLs-j!PL
cf St. Louis

u

s. finnncifu

DATA

Week ending November 13, 1968

m 21 m
Most interest rates (pages 8 and 9) have in­
creased since August. Yields on three-month Treasury
bills, long-term Government bonds and highest grade
Corporate bonds have recovered more than half of the
declines of late spring and summer. The bill rate
averaged 5.44 per cent during the first half of this
week, compared with a low of 4.96 per cent in early
August and a high of 5.82 per cent in May.
Interest
rates on long-term Government bonds averaged 5.32 per
cent Tuesday and Wednesday, about halfway between a low
of 4.99 per cent in early August and a high of 5.52 per
cent in May. Yields on Corporate Aaa bonds reached a
low of 5.95 per cent in early September, falling from
6.28 per cent in May, and subsequently have risen to
6.15 per cent.
The rising interest rates reflect a
strong demand for funds accompanying a continued rapid
increase of total demand for goods and services.
Recent increases in interest rates may also
reflect, in part, short-term effects of a slower growth
of money (page 3) since mid-year. The money stock
averaged $191.9 billion during the week ending November 6,
up about $1.7 billion from the previous week. However,
during the past three months the money stock has in­
creased at a moderate 2.1 per cent annual rate, fol­
lowing a rapid 8 per cent rate from January to July.
Recent growth of money is about in line with the 1957
to 1967 trend rate of 2.6 per cent.
Growth of other monetary aggregates has not
slowed significantly since mid-year. The monetary base
(page 2) has risen at a 5.4 per cent annual rate


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

during the past three months, the same as the 5.4 per
cent rate from January to July, but faster than the
1957 to 1967 trend rate of 3.3 per cent. Growth of the
money stock plus time deposits (page 4) and of bank
credit has accelerated since July, reflecting the rapid
rise of time deposits (page 7) during the period. The
broad measure of money averaged $390.8 billion during
the four weeks ending November 6, up at a 10 per cent
annual rate from three months ago.
The more rapid growth of money plus time
deposits and bank credit reflects a rechanneling of
financial flows through commercial banks following the
mid-year declines of market interest rates relative to
rates banks may pay on time deposits. Because the
recent growth of bank credit has probably been offset
by lower credit flows in other markets, it does not
necessarily indicate an acceleration in the growth of
total credit in the economy nor a rapid expansion of
total liquid assets. The slower growth of the money
stock, assuming the demand to hold money grew at about
an unchanged rate, probably provides less expansive
monetary influence. However, if time deposits do not
continue to grow at the recent rapid rate, absorbing
reserves which might otherwise support demand deposits,
it is unlikely that the recent slower pace of money
growth will continue, unless the growth in the monetary
base also slows significantly.

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. November 15,1968

illi'

MONETARY BASE
FEDERAL RESERVE CREDIT [2
Averages of Daily Figures

of Dollars

78

Billions of

Seasonally adjusted by this bank
Annual rates of change, average of
four weeks ending Nov. 13, 1968 from
four weeks ending:

77

Monetary Base

F.R.

Credit

i-^.V

1-6-J
Feb.

76

t/6-3

f u. 7
tn-3

-f~ & <
1957-1967
75

Monetary Base

74

73

Vi

72

Monetary
Base

F.R.

Credit

S9 (,
if. 3

(o. $
tot,
J~9. 9

71

M, 7
Federal Reserve Credit

70

56

1/

55

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.
54
2/
Latest data preliminary
Latest data plotted week ending: Nov

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

13, 1968

53
<?

4

18
Oct.


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

1

1967

15
29
Nov.

13 27
Dec.

10
24
Jan.

7
21
Feb.

1

15
May

29

12
26
June

10 24
July

11968

7
21 4
18
Aug.
Sept.

2
16
Oct.

8
Dec.

22

5

19
Feb.

1969

5
Mar.

MONE|gTOCK*
Averages
ily Figures
Seasonally Adjusted

Billions of Dollars

Annual rates of change,
four weeks ending Nov.
from four weeks

Billions of Dollars

average of ~

6,

1968

1957-1967

13-week centered
moving average
Weekly

* Current data appear in the Board's H.6 release.
Back
data appear in the June 1968 IFederal Reserve Bulletin.
Latest data preliminary
“"“Latest data plotted week ending: Nov.

6

1-1.1. Li

20

Sept.

4

18

1

Oct.


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

15
Nov.

1967

29 13

27
Dec.

10

- 24
Jan.

6,

7

For trend of money stock by months see this bank's
monthly release entitled "Monetary Trends".

1968

21
Feb.

6

20
Mar.

3

17

Apr.

1

15
May

29 12

26

10

June

1968

24
July

7

21

Aug.

4 18
Sept.

2

16 30
Oct.

13

27 11 25

Nov.

Dec.

8

22
Jan.

5

19
Feb.

5

19
Mar.

1969
Prepared by Federal Reserve Bank of St. Louis

2
Apr.

MONEY STOCK PLUS TIME DEPOSITS*
Averages of Daily Figures
Seasonally Adjusted

Billions of Dollars

Annual rates of change,

BlXlions of Dollars

average of

from four weeks ending:

May
Feb.

8,
7,

1968 -/
1968 y.

/e, 2f, g

1957-1967

* Current data appear in the Board's H.6 release.

Latest data preliminary
Latest data plotted week ending: Nov.

6

20

4

18
Oct.


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

1

15

29

13 27

10 2k
Jan. •

6,

7 21
Feb.

1968

6

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".

20

3

17

1

15

29 12

26
June

i

10 2k
July

7

21

Aug.

4

18
Sept

2

16

30

13

27 U 25

8

22

5

19

5

19

Oct.

1968
Prepared by Federal Reserve Bank of St. Louis

2

BUSINESSMANS

Large Comm^Rial Banks
Billions of Dollars

Billions of Dollars

Wednesday Figures
Seasonally ad justed by this bank.
Annual rates of change,

average of

from four weeks ending:

1960-1967

MILLIONS OF DOLLARS
UNADJUSTED

61, eeo

61, 90S

-- Current and year ago unadjusted data appear in
-- the Board's H.4.2 release.
Seasonal adjustment

Latest data preliminary _
Latest data plotted:
No\

6

20

4

18


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

1

15

29 13

7“

mm

27

10

24

7

21

6 20

1

15 29

12

26

10

24

7

computed by this bank using 1962 through 1967 data.

21

4

If

3013

27

11 25

8

22

5

19

5

19

June

Prepared by Federal Reserve Bank of St. Louis

2

CERTIFICATES OF DEPOSIT [1_
Large Commercial Banks
Wednesday Figures

Billions of Dollars

Billions of Dollars

----• Annual rates of change, seasonally unadjusted data
---- average of four weeks ending Nov. 6, 1968 from
---- four weeks ending:
----j Aug. 7, 1968
" '

1964-1967

-----

Millions of Dollars

JJ,

V/*

P

latest data preliminary
Latest data plotted:

C

Current and year ago data appear in the
Board's H.4.2. release.

\!

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
Mar.

17

1

15 29

12

26 10

June

24

July

7

21
Aug.

4

18
Sept.

2

Negotiable time certificates of deposit

16

30

13 27 11

25

8

22
Feb.

Prepared by Federal Reserve Bank of St. Louis

Mar.

Apr.

TIME ^OSITS*_
All Commercial Banks
Averages of Daily Figures
Se a son a I ly Adjusted

Billions of Dollars

____Annual rates of change, average of
214----four weeks ending Nov. 6, 1968
---- from four weeks ending:

Billions of Dollars

.
-

1957-1967

168

'* Current data appear in the Board's H.6 release.
Back
"
data appear in the June 1968 Federal Reserve Bulletin.
“Latest data preliminary
"Latest data plotted week ending: Nov.

.
-

6, 1968

For trend of time deposits by months see this bank's
monthly release entitled "Monetary Trends".
'

.

in i in11
6

20

4


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

18

1

15

29 13

27

10 24

■7

21

6 20

3

17

1

15

29 IS

26

June

10 24
July

7

£l

4 18 " 2

1630132711258225195192

Aug

Prepared by Federal Reserve Bank of St. Louis

t
YIELDS ON SELECTED SECURITIES
Averages of Daily Rates Ended Friday

Per Cent

Per Cent

U J LI
__

3-MONTH
TEE AS. 3-5

f_ BILL

l
|?

fog
V.9i

YEA!

ski
S.l?

LONGTERM

CORPORATE
:

in

1.91

Aaa_

~
!

i /y

to?

K s- n s. kr S.66 \ t.co
S-e? ! f- is
jy s./r s.ii
& s.n s.s3
So 6
S. 17
% S-H s.io S.cy S.9S
H S.ZS
fjb
S-/2. : s. 9r
3C X/f
f-h
s.c$ ! s.9f
f,0?
SIS
s.ts
s,i4

s.ty
S2Jt

.

e,crp
lot
6-o<>
l./o

$./3
t rS
Corporate
Aaa Bonds'

Three-Month Treasury
Bill Market Yield -

Discount Kate

Long-Term
Government Bondr

Latest data plotted are averages of rates available for the week ending: Nov.

15,

...i

8

22

6

20

3 17

1


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

15

29 12

26

9

23

8

22

5

19

3

17

31

14

I

28 12 26

[une

1968
.1

9

23

6

20

4

18

1

15

29 13

27

10

24

7

21

7

21

July

Prepared by Federal Reserve Bank of St. Louis

9Per

SELECTED SHORT-T^\ INTEREST RATES
Averages of Daily^ates Ended Friday

Cent

9.00

TTTTTT

if

“ fafeit
4-6-MONTH

8.50____

-

23
30
“V 6

- r

/3

//

:

&
)

6.50

S'IS

S90
S.99
S-63
S.st
s, 10
S'gg

S.70

f.gf
S.gf
S-8 2
SSI
(,.00

S.g?

\*/f

sss

i.eo
0/3

S(o
S-7S
S.8S
sso
S.fS
S.9S
6-oo

S-13
S. 13

8.50

6/3

S.gp

S.i3
S.6J
SU3

—

FUNDS, _

s.gc
s.gc
s.go

S.(J
S.61

S .77

CD's **

9.00

r
—r

LARGE
"90 DAYr FEDERAL

S.go

S.L3

S.Z2
S.M

-v

7.00

S-7S

Per Cent

T

S. go
S, go

s.io
s.u

s.u
sh
SM
5.1S
S'is
sis
s.lf

So
21
~Ocj- H
'

PRIME
BANKERS'
ACCEPTANCES

s.?r
s.u
s.u
sit

/i

-

7.50

T

PRIME

COMMERCIAL

8.00

l

8.00
•
■

7-50

S, IS

£.83
S.9S
s.gg

7.00

6/6

S.(9

-

6.50

—

Federal Funds Rate
- -

6.00

r
*r

t-

ji,**

9

%
i

—

1r ‘
A
Aa

6.00

-

S.(9

VV

■V

fy
•

5.50

1
V

Di

■■

r

«■ 1 r*k

■

5.50

Bankers

1

in t Ra

t*

Commercial Paper
ce pt aiices 4 -t O--6 M an tl

5.00

5.00

4.50

4.50

4.00

4.00

3.50

3.50

3.00
0

.Latest data plotted are averages of rates available for the week ending: Nov.

15,

3.00

1968

b

'

1

8

22

Sept.

6

20

Oct.

1

3

I

1

17

Nov.

I

L_l

1

L_J

15
Dec.

I

I

I

I

ft

29 12 26
Jan.

I

I

9

Feb.

1967
‘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

—I

L—J

23 8

1

22

Mar.

1—L—I

5

19

Apr.

1

1

1—1

3

17
May

1

1

1—I

31

L—I

|__i

i

14 28 12
June

1968

1

1_

26 9 23

July

Aug.

6

20

Sept.

4

18 1

Oct.

15
Nov.

29 13 27
.

Dec.

10 24

7

Jan.

Feb.
Mar.
1969

21

7

21

Prepared by Federal Reserve Bank of St. Louis

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

Millions of Dollars

2,000

Millions of Dollars

1,900
EXCESS
RESERVES

i

BORROWINGS
WEEKLY DATA

zte

//

3i7

js

yry

/7X

-/??

SS6

//

FREE
RESERVE5

"

\

iffS
y?/"

SVC

-no

t/-0 X
J-/S

$3S

_

^97
siz

-no
-J)©?

U7S

1,300

1,500

BIWEEKLY SETTLEMENT PERIODS

WEEKLY RESERVE PERIODS -

1,000

Borrowings

Excess Reserves

Net Free Reserves

\J

-

-

Latest data preliminary __
_
_
Latest data plotted: one week ending Nov.

1,000

13,

Because of the change in Regulation D
placing all member banks on a one-week .
reserve adjustment period, beginning withthe week ending September 18, 1968 the
'
above reserve data are reported on a
one-week period.
_

1968

1,100
13

27

11

25


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

8

22

6

20

3

17

31

l1*

28 13 27

10

24

8

22

5

19
June

3

17

31 14

28 11

25

9

23

6

20

1

15

29

12

26

■Prepared by Federal Reserve Bank of St

12

26

9

•
Week ending

Total
Effective
Reserves

(Seasonally adjusted)

1968
Aug.

Sept.

Oct.

7
14
21
28

ZLH/

/7. if

ZC.lo

/?. Vf
/;. fo
n.

Zi.60

ZL-U

fit 5 *i
/;. i f

4
11
18
25

ZO.fl
U, c?
ASs;

2
9
16
23

U.3 +
AC.AZ
Z7.6!
JC HI
9?

17.sr

A7-*7 P

) 7.ssr
n.<c(

30
Nov.

Reserves Available
for private
Demand Deposits

6

13

H-39
/?■ 2/

n < si
;?■ 33

n. ?o
/?. io

p

Average of daily figures in billions of dollars.
P - preliminary


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

It

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