Full text of U.S. Financial Data : Week Ending: November 16, 1977

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Week ending: November 16, 1977

LIBRARY
DEC l 6 197?

Many large corporations have the option of borrowing
from commercial banks or borrowing through the commercial paper
market. Changes in the differential between the commercial bank
prime rate and commercial paper rates indicate changes in the
relative attractiveness of borrowing from commercial banks. In
this context, the relevant measure of the cost of borrowing at
commercial banks depends upon whether a bank loan has a fixed or
floating interest rate. On a fixed-rate loan the interest rate
remains unchanged while the loan is outstanding. For such loans
the relevant comparison of interest rates is between the
prevailing prime and commercial paper rates. For bank loans with
fixed interest rates, the differential between the prime rate and
the interest rate on 90 - 119 day commercial paper has narrowed in
recent months
This differential averaged 1.56 percentage points
from June of last year through April of this year, and has
averaged 1.16 percentage points from May to the present.
On floating-rate loans from commercial banks, interest
rates are changed while such loans are outstanding when there is
a change in the prime rate. The effective costs of floating-rate
loans can be determined only after such loans mature. A
comparison of the costs of short-term floating rate loans to the
costs of borrowing in the commercial paper market is presented in
the chart on the back of this release. The commercial paper rate
1S
a^erage late on 90 “ 119 day paper for the week ending
each Friday. The floating prime rate plotted each week is the
average prime rate during 90 calendar days following the Friday
of that week. From June of last year through January of this
year the differential between the floating prime rate and the 90
- 119 day commercial paper rate averaged 1.41 percentage points
compared to a spread of 1.58 percentage points from February
through the first three weeks of August this year.
_
Surveys of lending practices indicate that most of the
business loans made by large banks have floating interest rates
whereas floating-rate loans are much less common at smaller
Therefore, the effective cost of prime rate loans at most
1 ge commercial banks relative to the costs of borrowing through
the commercial paper market has actually risen since early this
year.
J

* See the quarterly G.14 release of the Board of Governors.


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

THIS RELEASE WILL BE MAILED LATER
THAN USUAL NEXT WEEK DUE TO A HOLIDAY ON
THURSDAY, NOVEMBER 24, 1977.

Prepared by Federal Reserve Bank of St. Louis
Released: November 18, 1977

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
132

BILLIONS
130

127.8
128.6
128.5
129.0
129.3
129.8

— NOV

128

126

124

122

120

118

1 16

114

112

1

15 29 13 27

10 2A

8 22

5 19

2

JAN

OCT
NOV
1976

FEB

16

2

16 30 13 27 11

APR

25

8 22

6 20

3 17 31

M 28 12 26

9 23

MAY

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 16, 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 MONETARY BASE IS AVAILABLE FROM THE FEDERAL RESERVE BANK OF ST. LOUIS.

MONETARY BASE
COMPOUNDED ANNUAL RATES OF CHANGE,
11/17/76

AVERAGE OF FOUR WEEKS ENDING:

2/16/77

4/13/77

5/18/77

6/15/77

7/13/77

8/17/77

9/14/77

9.3
7.5
8.4
9.2
9. 1
9.4
9.6

5.8
7.7
9.0
8.9
9.3
9.6

7.1
9.1
8.9
9.4
9.8

12.3
11.1
11.1
11.3

10.6
10.8
11.0

10.0
10.6

11.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/13/77
5/18/77
6/15/77
7/13/77
8/17/77
9/14/77
10/19/77
11/16/77

2


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

7.7
7.9
7. 1
7.7
8.3
8.3
8.6
8.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIERS
ADJUSTED FEDERAL RESERVE CREDIT^
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

MULTIPLIER

RATIO

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977
BILLIONS OF DOLLARS
il? ------ .----- 1-

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

112

COMPOUNDED ANNUAL RATES
_ OF CHANGE. AVERAGE OF
_
THE FOUR WEEKS ENDING
_ NOVEMBER 16. 1977 FROM
THE FOUR WEEKS ENDING:
SEP.

13.6

ADJUSTED FEDERAL RESERVE CREDIT

- AUG.

JUL.

— JUN.

12.9
12.9

MAY
FEB.

10.9

~

__NOV.

1211
OCT. 1

BILLIQNS
108.5
109.3
1 09. 4

110.6
1

15 29 13 27 10 24

OCT

NOV

8 22

5 19

2 16

JAN

FEB

2 16 30 15 27 11

APR

25

8 22

6 20

3 17 31

14 28 12 26

9 23

MAY
1977

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 16, 1977
1/ RATIO OF MONEY STOCK tMl 1 / MONETARY BASE.
2/ ACREP^T,1 £ls 0F FEDERAL RESERVE HOLDINGS OF SECURITIES, LOANS, FLOAT
ncpncTaTSccncDai
FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACtlNG TREASURY
Sio?JlIi«nTDESf.5AL.5^§ERVE ,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

3

MONEY

STOCK PLUS NET T3 ME DEPOSITS (M2)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

810
805

BILLIONS

800

799.0
800. 1
799.0
800.8
798.0
801.6

E NOV.

795
790
785
780
775
770
765
760
755
750
745
740
735
730
725
720
715
710
705

1

15 29 13 27 10 24

8 22

OCT NOV
1976

5 19

JAN

2 16

2 16 30 13 27 11

APR

FEB

B 22

6 20

3 17 31

14 ZB 12

SEP

MAY

9 23

OCT

1977

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

MONEY STOCK PLUS NET TIME DEPOSITS (M2)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
11/10/76

2/9/77

4/6/77

9.9
9.4
9.4
10.6
9.9
9.9
9.5

9.0
9. 1
11.0
9.9
9.9
9.4

5/11/77

6/8/77

7/6/77

13.0
10.5
10.3
9.5

11.1
10.6
9.6

8/10/77

9/7/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/ 6/77
5/11/77
6/ 8/77
7/ 6/77
8/10/77
9/ 7/77
10/12/77
11/ 9/77


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

10.5
10.5
10. 1
10.0
10.8
10.2
10.2
9.8

8.4
11.3
9.8
9.8
9.2

7.7
7.2

8. 1

PREFV-.RED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

MONEY STOCK (Ml )

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
340 ------ 1----- 1-

BILLIONS OF DOLLARS
- ----- ------- 340
-

BILLIONS
334.2
334.5
333.3
334.5
331.2
333.6

1

15 29 15 27 10 24

8 22

5 19

2 16

JAN

FEB

2 16 50 15 27 11

APR

25

8 22

6 20

MAY

3 17 51

14 28 12 26

SEP

9 23

OCT

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977
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 ENOING:
11/10/76
2/9/77
4/6/77 5/11/77
6/8/77
7/6/77 8/10/77
9/7/77
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/ 6/77
5/11/77
6/ 8/77
7/ 6/77
8/10/77
9/ 7/77
10/12/77
11/ 9/77


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

4.9
6.7
6. 1
6.2
7.7
7.2
7.6
7.3

9.5
7.8
7.6
9.6
8.6
9.0
8.5

9. 1
8.3
11.1
9.4
9.8
9.0

4.5
9.7
7.9
8.7
7.9

13.1
9.7
10.1
9.0

11.0
11.1
9.5

7.2
6.2

8.0

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

6.5
CORPORATE Aaa BONDS

8.0
7.5

7.0

PRIME BANK
LOAN RATE

6.5

MUNICI PAL

6.0

5.5

COMMERCIAL PAPER

5.0

4.5

4.0

1

15 29 12 26 10 24

7 21

4 18

4 18

JAN

3 17

FEB

MAR

1

15 29 13 27 10 24

8 22

5 19

2

16 30 14 28 11

OCT

1976

25

NOV

1977

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 18, 1977

1977
SEP.

2
9
16
23
30
OCT.
7
14
21
28
NOV.
4
1 1
18 ***
25

90 DAY
CD'S ’UDem

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
AAA BONOS

MUNICIPAL
BONDS gee

5.98
5.97
6.10
6.22
6.37
6.43
6.58
6.80
6.72
6.67
6.74
6.69

6.00
5.99
6.19
6.22
6.30
6.39
6.54
6.66
6.61
6.61
6.61
6.59

5.93
5.98
6.19
6.22
6.30
6.48
6.64
6.62
6.53
6.69
6.66
6.58

7.92
7.90
7.89
7.92
7.96
7.99
8.04
8.05
8.06
8.08
8. 10
8.08

5.54
5.48
5.51
5.50
5.51
5.60
5.70
5.67
5.59
5.55
5.55
N. A.

* AVERAGES OF RATES AVAILABLE.
** BOND BUYER'S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
3616* 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.

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
DISCOUNT RATE

j

s

V_/

THREE-MONTH TREASURY
BILL MARKET YIELD

4.0

4.0

till 1 I I I I 1.1 I I I I I I I 1I I I I I i I 1 I I I 1 I I I I 1 I I I I I I I
0

3 17

1 15 29 12 26 10 24

7 21

4 18

4 18

1

SEP

OCT

JAN

FEB

MAR

APR

NOV
1976

DEC

15 29 13 27

MAY

10 24

JUN
1977

8 22

JUL

5 19

AUG

2 16 30 14 28 11

SEP

OCT

25

NOV

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 18, 1977

1977

FEDERAL
FUNDS sat

3-MONTH
TREASURY
BILLS

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECUR1T1ES

LONG-TERM
TREASURY
SECURITIES

6.02
5.97
6.05
6.10
6.35
6.41
6.41
6.50
6.49
6.50
6.58
6.42

5.56
5.65
5.86
5.90
5.89
6.09
6.32
6.17
6.09
6.20
6.15
6.09

5.98
6.04
6.14
6.15
6.21
6.38
6.61
6.59
6.49
6.60
6.55
6.50

6.84
6.86
6.93
6.93
6.98
7.05
7.21
7.30
7.32
7.36
7.30
7.20

7.40
7.41
7.45
7.47
7.49
7.53
7.61
7.62
7.64
7.70
7.71
7.67

SEP.

2
9
16
23
30
OCT.
7
14
21
28
NOV.
4
11
18 *
25

* AVERAGES OF RATES AVAILABLE.

“ i»AJA«E^F?5

THAN DATE SH0*N-

as; i?Lr^RMSRiuii.ABE co“puted by the femral reserve «* of st- l°uis
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
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
475

BILLIONS
464.8
465.6
465.7
466.3
466.8
468.0

470
465
460
455
450
445
440
435
430
425
420
415
410
405

J

15 29 15 27 10 24

OCT

8 22

5 19

2 16

JAN

NOV

FEB

2 16 50 15 27 11

APR

25

8 22

6 20

5 17 51

MAY

14 28 12 26

SEP

9 25

OCT

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED AS: SAVINGS DEPOSITS, TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERT IFI CATES OF DEPOSIT OTHER THAN NEGOTI ABLE 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 ENDING:
11/10/76

2/9/77

4/6/77

10.1
10.4
10.6
11.3
10.7
10.4
10.1

8.8
9.6
10.9
10.2
9.9
9.6

5/11/77

6/8/77

7/6/77

13.0
11.1
10.5
9.9

11.1
10.2
9.6

8/10/77

9/7/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/ 6/77
5/11/77

6/ 8/77
7/ 6/77
8/10/77
9/ 7/77
10/12/77

11/ 9/77

8


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

14.9
13.3
13.0
12.8
13.0
12.5
12. 1
11.7

1 1.3
12.5
11.2
10.6
10.1

7.9
7.8

8.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

OF MONEY STOCK

DEMAND DEPOSIT COMPONENT

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

8ILLIOHS OF DOLLARS
250

BILLIONS
247.5
247.6
246.1

OCT.

245

243.7
246. 1

240

235

230

225

1

15 29 13 27 10 24

8 22

5 19

2 16

JAN

FES

2 16 30 15 27 11

APR

25

8 22

3 17 31

14 28 12 26

9 23

MAY

1976

1977

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

DEMAND DEPOSIT COMPONENT OF MONEY STOCK
COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
2/9/77
4/6/77 5/11/77
6/8/77
7/6/77 8/10/77
9/7/77

11/10/76
TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/ 6/77
5/11/77
6/ 8/77
7/ 6/77
8/10/77
9/ 7/77
10/12/77
11/ 9/77


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

3.6
6.0
5.2
5.3
7.2
6.5
7. 1
6.6

9.6
7.4
7. 1
9.7
8.4
8.8
8.0

9.2
8. 1
1 1.7
9.4
9.9
8.7

3. 1
9.8
7.4
8.4
7.2

14. 1
9.6
10.2
8.5

11.4
11.5
9.1

6.3
4.7

6.8

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
90

BILLIONS
86.7
86.9

88

87.3
87.5
87.5
86

84

82

80

78

1

15 29 13 27 10 24

8 22

5 19

2 16

JAN

OCT
NOV
1976

FEB

2 16 30 13 27 11

APR

8 22

6 20

3 17 31

14 28 12 26

0 23

MAY
1977

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE , AVERAGE OF FOUR WEEKS ENDING:
11/10/76

2/9/77

4/6/77

5/11/77

8.9
9.0
8.8
8.9
9.3
9.2
9.4
9.5

9. 1
8.9
9.0
9.5
9.3
9.6
9.8

8.7
9.0
9.7
9.4
9.8
9.9

8.9
10.0
9.5
9.9
10. 1

6/8/77

7/6/77

10.8
9.9
10.3
10.5

10.0
10.5
10.6

8/10/77

9/7/77

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/ 6/77
5/11/77
6/ 8/77
7/ 6/77
8/10/77
9/ 7/77
10/12/77
11/ 9/77

9.9
10.2

11.3

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

2.5
1977

MILLIONS

2.0

OCT. 12

1.5

1.0

0.5

1

15 28 13 2T 10 24

B 22

5 19

2 16

JAN

OCT
NOV
1976

FEB

2 16 30 13 27 11

APR

25

8 22

6 20

3 17 31

14 28 12 26

9 23

MAY

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 16, 1977

BUSINESS LOANS

( COMMERCIAL
BILLIONS OF DOLLARS
126
124
—
122
120
-

AND

INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
126
—

_

/

120
-

i is

118
-

—

-

-

116

116

114

114
—

112

112
-

—

—

-

1 10

106
106
104
102
100
98
0

122

110
108

_ COMPOUNDED ANNUAL RATES
OF CHANGE, AVERAGE OF
iih- rwurv
i ito
- NOVEMBER 9, 1977 FROM
— THE FOUR WEEKS ENDING
~ SEP. 7, 1977
— AUG. 10, 1977
- JUL. 6, 1977
IUN. 8, 1977
MAY 11, 1977
FEB. 9, 1977
NUV. 10, 1976
III 1
1 1 1 1 1 1 1

17.3
14.6
10. 1
10.2
10.3
8.3
7.2
11111111

—
106
1977
OCT.

111 _LU. 1. JJ.I JJ 1
13 27 11

SEP

OCT NOV
1976

DEC

JAN

L1 ILL 10 NS

FEB

MAR

APR

MAY

25

1 1 1 1
6 22
JUN
1977

5
12
19
26
NOV. 2
'
9
11 1 -LLLLL 1 1 1
6 20

JUL

3 17 31

AUG

104

1
.ir
121,041
121,699
122,881
123,756
~
123,539
--1..... Ill'

102

14 28 12 26

SEP

OCT

9 23

NOV

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 9, 1977


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

100
98

Selected Interest Rates and Interest Rate Differentials
Percent

Percent

8--- r

FLOATING PRIME RATE [2
PRIME BANK LOAN RATE

90-119 DAY PRIME
COMMERCIAL PAPER RATE

FLOATING PRIME RATE
LESS COMMERCIAL PAPER RATE

PRIME RATE LESS*
COMMERCIAL RAPER RATE

JAN.

FEB. MAR. APR. MAY JUNE JULY AUG. SEP. OCT. NOV. DEC. JAN.

FEB. MAR. APR. MAY JUNE JULY AUG. SEP. OCT. NOV. DEC.

1976
11 Averages of daily rales, five days ending Friday; plotted on Wednesdays.
[2 Average prime rate for ninety days following the Friday of each week.


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Federal Reserve Bank of St. Louis

Prepared by Federal Reserve Bank of St. Louis