Full text of U.S. Financial Data : Week Ending: November 8, 1978

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DATA

Week ending: November 8, 1978

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This
past week
banks raised
lending
rate most
from large
10.50 commercial
to 10.75 percent.
One
way to place this 25 basis point increase in perspective is
to consider the effect of last week's increase in reserve
requirements on the cost to banks of raising loanable funds.
Until last week,
time deposits with initial maturities of
30-179 days had reserve requirements of 3 percent on these
deposits up to the first $5 million and 6 percent on the
rest.
However, as of the week beginning Thursday, November
2,
1978,
the Federal Reserve imposed a supplementary 2
percent reserve requirement on all member bank time deposits
of $100,000 or more, and on certain other member bank
liabilities. One consequence of this supplementary reserve
requirement has been an increase of more than 20 basis points
(at current market interest rates) in the effective interest
rate faced by member banks obtaining loanable funds through
the issuance of
large
($100,000
or more)
short-term
negotiable certificates of deposit (CDs).
To illustrate how increases in reserve requirements
raise the effective interest rate faced by member banks
issuing large CDs, suppose a bank issues a $100,000 CD at a
10 percent interest rate with a maturity of less than 180
days.
On an annual basis the interest cost is $10,000.
Prior to November 2,
1978, if the bank had more than $5
million of short-term time deposits,
it would have been
required to increase its reserves by $6,000, leaving $94,000
available to be loaned. The $10,000 annual interest cost is
10.64 percent of the $94,000.
Thus, 10.64 percent is the
effective interest rate faced by the bank for obtaining
loanable funds by issuing large short-term CDs at a 10
percent market interest rate, prior to the supplementary
reserve requirement.
With the imposition of the supplementary 2 percent
reserve requirement, however,
the bank must increase its
reserves by an additional $2,000, leaving $92,000 available
to be loaned.
The $10,000 annual interest cost is 10.87
percent of the $92,000, which becomes the effective interest
rate to the bank. The increase of 23 basis points in the
effective interest rate is a consequence of the supplementary
2 percent reserve requirement.


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

Prepared by Federal Reserve Bank of St. Louis
Released: November 10, 1978

2

MONETARY BASE

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS
144

ILL IONS OF DOLLARS
—--------- ------------ 144

---------- i---------- ,-------B.1LL1.SNS

OCT.

140.3
140.6
1 40.8
141.0
141.1
141.4

5 IB

OCT

2

16 30 14 28 11

NOV
1977

DEC

JAN

25

8 22

8 22

FEB

5 IB

3 17 31

MAY

APR

14 28 12 26

B 23

6 20

JUN
1978

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 8, 1978
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 BAWS >, 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
11/9/77

2/8/78

8.7
8.9
8.6
9.5
9.3
8.9
9.6
9.6

6.8
6.9
8.6
8.5
8.0
9. 1
9.2

4/5/78

5/10/78

AVERAGE OF FOUR WEEKS ENDING:
6/7/78

7/5/78

8/9/78

9/6/78

11.0
10.6

13.2

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
4/ 5/78
5/10/78
6/ 7/78
7/ 5/78
8/ 9/78
9/ 6/78
10/11/78
11/ 8/78


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

8.5
10.9
1 0. 1
9. 1
10.4
10.3

1 1 .7
10.2
8.9
10.5
10.4

11.7
9.5
11.3
11.0

6.5
9. 9
9.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER v
ADJUSTED FEDERAL RESERVE CREDIT*/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO

RATIO

2.0

2.9

MULT IP-1 ER

2.3

2.2

\ - ->

uu& RATIj
: 14
25 f:ffl
:18?
. *7 £:§£
“ill 111 -LI 1 1 1 1 1- 1 1 1 1 1 1 1111 j 11 jiii 111 111 1 1 NOV
1 1 1 ■ i i I i i i i i i i i1

2.3

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1, 1978
BILLIONS OF DOLLARS

r

120
118

i
i------------1--------i----------——
COMPOUNDED ANNUAL R ATES
---- OF CHANGE, AVERAGE OF
THE FOUR WEEKS END 1 NG
NOVEMBER 8, 1978 FR OM
---- THE FOUR WEEKS END 1 NG:
- SEP.
6 . 1978 16. S
AUG.
9 . 1978 12.
_ AD. USTED -EDER/ L RESE RVE CF EDIT
---- JUL.
5 , 1978 10.
_ JUN.
7 , 1978 12.
MAY
1G , 1978 12.
— FEB.
a . 197R in
_ NG V.
9 , 1977 1 1.

j 126
124

122

120

I 18

-

1 16

116

-

-

114

V

114

112

1 10
108

Jj370
k/“

OCT •

II

<„

0

' *'
SEP

BILLI E2NS. ~
*

8

111 jj 11 _LLL -LLL .in jin
1 1 1
jj i 1 1 1 1
3 ,w * lo ao M 28 11 25 8 22 8 22 5 19 3 17 31 M 2
OCT NOV
DEC
JAN FEB
MAR
APR MAY
JUN
1977
1978

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 8,

120. 7
)
9
!:
121.7

-


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

110

~
—

I | | | | || | | i i i | i i i i
1 1 1
12 2
9 23 8 20 4 18 1 15 29
JUL
AUG
SEP
OCT
NOV

1978

1/ RATIO OF MONEY STOCK (Ml ) / MONETARY BASE.

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

112

108

4

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
875
870

BILLIONS

864.1

865

869.4
869.3
865.3
868.2

860
855
850
845
840
835
830
825

815
810
-=| 805
800
795
790
I I I I
7 21

5 18

SEP

OCT

Z 16 10 U 21 11

JAN

25

• 22

8 22

S 18

3 17 i l

FEB

14 28 12 28

JUN

8 23

8 20

4

0

18

JUL

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1, 1978
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:
11/2/77

2/1/78

3/29/78

5/3/78

6.5
7.5
7.3
7.5
7.5
7.9
8.3
8.2

7.7
7.3
7.6
7.5
8. 1
8.7
8.5

9.3
9. 1
8.6
9.2
9.7
9.5

7.4
7.4
8.4
9.2
9.0

5/31/78

6/28/78

8/2/78

8/30/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/29/78
5/ 3/78
5/31/78
6/28/78
8/ 2/78
8/30/78
10/ 4/78
11/ 1/78


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

1
7.9
9. 1
9.9
9.5

9.3
10.3
9.7

11.9
10.6

10. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MONEY STOCK (Ml )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
370 --------- 1--------- 1--------

BILLIONS OF DOLLARS
----- ----------------------- 370

BILLIONS

__ SEP.

361.8
360.2
358.9
361.0

— NOV.

7 21
SEP

5 10 2 16 50 14 28 11 25
8 22 8 22
OCT NOV
DEC
JAN
FEB
MAR

5 19
APR

3 17
MAY

JUN

JUL

1977
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1.

1978

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.fl 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 ENDING*
11/2/77

2/1/78

3/29/78

5/3/78

5/31/78

6/28/78

6. 1
7.4
8.8
8.0

6.4
8.6
7.6

) THE AVERAGE
• FOUR WEEKS
JDING:
3/29/78
5/ 3/78
5/31/78
6/28/78
8/ 2/78
8/30/78
10/ 4/78
11/ 1/78

5. 1
8.2
7.6
7.8
7.2
7.5
8. 1
7.8


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

9.6
8.2
8.5
7.5
7.8
8.5
8. 1

13.7
12.4
9.8
9.9
10.4
9.6

6.7
5.4
6.5
7.9
7.3

8/2/78

1 1 .6
9.3

8/30/78

8.9

PREPARED BY FEDERAL RESERVE SANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT

12.0

12.0

1 1 .5

11.0

I 1 .0

10.5

10.5

10.0

10.0
9.5

9.0
CORPORATE Aaa BONDS
8.5
’RIME BANK
.PAN RATE

8.0
7.5

90 DAY CD’suae*
7.0
COMMERCIAL PAPEP

6.5

MUNICIPAL

6.0

5.5

5.0
till 1.1. U
2

16 30 H 26 11

25

0 23

« 20

3 17

JAN

FEB

3 17 31

1A 29 12 26

0 23

7 21

JUL

AUG

OCT

NOV

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 10, 1978

1978
SEP.

OCT.

NOV.

1
8
15
22
29
6
13
20
27
3
10 *
17
24

90 DAY
CD'S XXX

PRIME
COMMERCIAL
PAPER
4-6 MONTH

PRIME
BANKERS'
ACCEPTANCES

CORPORATE
Aaa BONDS

MUNICIPAL
BONDS **

6. 19
8.35
8.44
8.63
8.83
8.95
9. 15
9.26
9.64
10. 10
10.77

8.03
8.24
8.43
8.51
8.60
8.75
8.97
9.07
9. 19
9.68
10. 26

8. 19
8.31
8.44
8.62
8.82
8.89
9.06
9.33
9.59
10. 46
10.63

8.67
8.67
8.63
8.70
8.77
8.81
8.85
8.88
8.94
9.04
9.07

6. 16
6. 13
6.02
6. 12
6.09
6.07
6. 10
6. 14
6.21
6.22
N. A.

* AVERAGES OF RATES AVAILABLE.
»* BOND BUYER’S AVERAGE INDEX OF 20 MUNICIPAL BONDS, THURSDAY DATA.
H0(e* 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

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

3-5 YEAR
TREASURY SECURITIES

FEDERAL FUNDS RATE

DISCOUNT RATE

REE-MONTH TREASURY
LL MARKET YIELD

2

16 30 M 28 11

25

OCT
NOV
1977

0 23

DEC

6 20

3 17

JAN

FEB

3 17 31

MAR

14 26

APR

12 26

MAY

9 23

JUN
1978

7 21

JUL

1

AUG

15 29 13 27

SEP

OCT

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: NOVEMBER 10,

1978
SEP.

1978

FEDERAL
FUNDS **

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL xxx

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECUR1T1ES

LONG-TERM
TREASURY
SECURITIES

8.28
8.30
8.33
8. 36
8.S2
8.85
8.71
8. 78
9. 24
9.29
9. 77

7.50
7.60
7.77
8.02
7.36
8. 14
7.98
7.89
7.70
8.73
8.89

7.55
7.74
7.79
7.98
8.28
8.38
8.42
8.56
8.61
8.98
9.42

7.86
7.86
7.95
8.08
8. 16
8.23
8.28
8.46
8.53
9. 17
9.30

8.36
8. 33
8.32
8. 40
8. 48
8.48
8. 47
8.56
8.68
9.05
9.04

8.34
8.31
8.28
8. 40
8. 51
8. 55
8.53
8.59
8. 64
8. 72
8.73

1
15

OCT.

10 24

NOV

29
6
13
27
10 *
17
24

* AVERAGES OF RATES AVAILABLE.

““ BOARO°Of^GOVERNORS^0FLO^RELEASE^ THAN DATE
*** rfc.li

treIIury

I bout RATE

B?LL_^Dro(gSDisc^S!/RAIs“.ARe C0MPUTED BY THE FE0ERAL RESEHVE BANK 0F ST- L0UIS-


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

PREPARED 8Y FEDERAL RESERVE SANK OF ST. LOUIS

7

8

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

515
BILLIONS.

510

502.3
504.2
505. 1

505

506.4
507.2

500
495
490
485
480
475
470
465
460
455

4 28 12 26

JAN

FEB

JUN

B 23

8 20

4 18

JUL

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1, 1978
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
* NET TIME DEPOSITS ARE DEFINED ASi SAVINGS DEPOSITS. TIME DEPOSITS OPEN ACCOUNT PLUS TIME
CERTIFICATES OF DEPOSIT OTHER THAN NEGOTIABLE TIME CERTIFICATES OF DEPOSIT ISSUED IN
DENOMINATIONS OF $100,000 OR MORE BY LARGE WEEKLY REPORTING COMMERCIAL BANKS.

NET TIME DEPOS1TS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
11/2/77

2/1/78

3/29/78

7.4
7.0
7.2
7.2
7.6
8. 1
8.5
8.6

6.4
6.8
7.0
7.6
8.3
8.8
8.9

6.6
6.9
7.8
8.7
9.3
9.4

5/3/78

5/31/78

8/28/78

9. 1
10.3
10.7
10.5

1 1.4
11.5
11.2

8/2/78

8/30/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/29/78
5/ 3/78
5/31/78
6/28/78
8/ 2/78
8/30/78
10/ 4/78
11/ 1/78


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

7.9
8.8
9.8
10.2
10.2

12.2
11.5

10.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
275

6-LLLi.QblE
264.5
268.5
264.5

245

5 18

2 16 30 14 28 II 25

DEC

JAN

8 22

8 22

5 18

3 17 31

FEB

14 28 12 26

JUN

8 23

JUL

6 20

4 18

SEP

OCT

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1, 1978
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:

11/2/77

2/1/78

3/29/78

5/3/78

5/31/78

6/28/78

3.3
7.7
6.6
7.0
6.5
6.8
7.3
7.0

9.9
7.5
7.9
6.9
7.3
8.0
7.4

!4.8
13.3
10.3
10.2
10.6
9.5

4.9
4. 1
5.4
6.9
6.2

6.0
7.2
8.5
7.4

5.9
8.1
6.8

8/2/78

8/30/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/29/78
5/ 3/78
5/31/78
6/28/78
8/ 2/78
8/30/78
10/ 4/78
11/ 1/78


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

11.1
6.4

7.7

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

CURRENCY COMPONENT
OF MONEY STOCK
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS of dollars

1978
95.4
95.8
95.7
96.0
95.8
96.5

— OCT

5 19

2 16 30 14 28 11 25 8 22
JAN
FEB

8 22

5 19

3 17 31

M 28 12 26

JUN
1978

1977
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1,

9 23

6 20

JUL

1978

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGI
11/2/77

2/1/78

3/29/78

5/3/78

AVERAGE OF FOUR WEEKS ENDING:
5/31/78

6/28/78

7.8
8.5
10.0
10.0

7.7
9.9
9.9

8/2/78

8/30/78

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
3/29/78
5/ 3/78
5/31/78
6/28/78
8/ 2/78
8/30/78
10/ 4/78
11/ 1/78

10.2
9.6
10. 1
10.2
9.6
9.6
10. 1
10. 1


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

8.3
9.5
9.7
8.9
9. 1
9.8
9.8

9.9
10. 1
8.8
9. 1
10.0
10.0

12.0
9.5
9.7
10.7
10.6

12.3
11.6

12.2

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

BORROWINGS FROM FEDERAL RESERVE BANKS
ALL MEMBER BANKS IN THE NATION
BILLIONS OF DOLLARS
3-5 r---------1---------- 1--------

1978

NOV.

1

BILLIONS OF DOLLARS
---------------------------- =3 3.5

1309

2

SEP

AVtKAGtS 01- DAILY FIGURES

MILLIONS

1C 30 H 28 11

OCT

DEC

23

JAN

8 22

8 22

5 19

3 17 31

FEB

M 28 12 28

JUN
1978

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 8,

9 23

JUL

SEP

OCT

1978

BUSINESS LOANS

( COMMERCIAL AND INDUSTRIAL )

WEEKLY REPORTING LARGE COMMERCIAL BANKS
StASUNALLY ADJUSTED

LLIONS OF DOLLARS

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

L.”MPCU?iOtD ANNUAL RATE
— OF CHANGE, AVERAGE OF
— THE FOUR WEEKS ENDING
_ NOVEMBER I, 1978 FROM
THE FOUR WEEKS ENDING:
__ AUG. 30,
AUG. 2,
“ JUN. 28,
— MAY 31,
*“w
’

1978
1978
1978
1978
--------

12.4
10.7
8.6
10.2
13.7
16.0
13.6

SEP. 27

137,121
138,365
138,227
138,965

NOV.
II I I I I
2

16 30 14 28

II

JAN

25

8 22

FEB

8 22

5 19

3 17 31

14 28 12 26

JUN

9 23

I

-I I M I I I

JUL

1978
LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1, 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
ILL IONS OF DOLLARS

__
go

BANKS

WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

61LLI QMS OF DOLLARS

1978

----- OCT.

SEP

LATEST DATA PLOTTED WEEK ENDING: NOVEMBER 1,

OCT

1978

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.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS