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ST

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LJ X\ TX\

Week ending: September 12, 1979

'
fDuring the past week most major money market banks
raised the prime commercial loan rate to 12.75 percent.
This
increase is the fourth since late July. These recent increases
in the prime rate reflect the combined effects of the rising
cost of funds to banks and the strong demand for business
loans.
Interest rates on large negotiable certificates of
deposit (CDs), a primary source of funds for commercial banks,
have risen sharply.
For example, the interest rate on 90 day
CDs has risen to 11.84 percent in the week ending September
14.
Because member banks are required to hold reserves against
these funds, the effective cost of these deposits to member
banks averaged 12.87 percent in the most recent week.
In
contrast, the effective cost of this source of funds was 11.18
percent during the last week of July.
The
continued
strength
in
business
demand
for
short-term credit is evident in the recent rapid growth of both
business loans and commercial paper outstanding.
Cannercial
and industrial loans by large weekly reporting banks have grown
at about a 26 percent annual rate over the last two months and
commercial paper issued by non-financial corporations continues
to increase at a high rate.
Since borrowing from banks and borrowing in the
commercial paper market are substitute forms of financing for
large corporations, the prime rate and the commercial loan rate
tend to move together. Since the end of July the four- to sixmonth commercial paper rate has risen
about 170 basis points
(page 6) while the prime rate has climbed 100 basis points.

The Board of Governors of the Federal Reserve has revised the
series on business loans at weekly reporting large commercial
banks beginning with January 1979 data.
The revision was due
to a reclassification of certain categories of loans and had
little effect on the levels or growth rates of business loans.
Data in this release are on the revised basis.


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

Prepared by Federal Reserve Bank of St. Louis
Released: September 14, 1979

2

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

BILLIONS OF DOLLARS
>54 ----- 1------ 1-

BILLIONS OF DOLLARS
--------- ----- 154

M8.7
149.3
149.6
150.3
150.5
150.7

AUG.

I I 11 1 111

I I I I
2

18 30 13 27 11

SEP

25

8 22

6 20

3

17 31

M 28 M 28 M

FEB

OCT

MAR

25

9 25

8 20

4

JUN

APR

18

1

15 29 12 20

JUL

LATEST DATA PLOTTED WEEK ENOING: SEPTEMBER 12, 1979
rue >n “IlCURR^C? I RASF CONSISTS OF’ C I ) HELD BANK PUBLIC AT IN FEDERAL RESERVE
B*«S iiicTpn udnftaryNBC1RCUL$!t I ON (CURRENCYMEMBER BY THERESERVES AND THE THE VAULTS OF
COfcMEAciAL BANKS) AND ( 3 ) AN ADJUSTMENT FOR RESERVE REQUIREMENT RAT 10 CHANGES. THE
MA ior SOURCF OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT. DATA ARE COMPUTED
BY THIS BAW
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:
9/13/78

12/13/78

2/14/79

3/14/79

4/11/79

5/9/79

6/13/79

2.8
6.5
5.2
7.0
7.5
8.5

7.9
5.7
7.9
8.2
9.2

7.4
9.8
9.7
10.7

7.8
8.4
9.8

12. 1
12.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING-.
2/14/79
3/14/79
4/11/79
5/ 9/79
6/13/79
7/11/79
8/15/79
9/12/79

8.4
7.6
6.8
7.7
7.0
7.7
7.9
8.4


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

5.8
4.8
6.6
5.7
6.9
7.3
8. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MULTIPLIER 1/
ADJUSTED FEDERAL RESERVE CRED I T 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
2.9

RATIO

2.9

MULT IPLIER

A
V

i979
AUC
SEF

Illl

1 1 1
i i i i ill ill j.111 1 1 1 1 1 1 1
LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5, 1979

.in

' 4 |:B
. 1 \

:
111. 11111111111

11 ii

111

BATJ.C

BILLIONS OF DOLLARS
134
- 1------ 1----- 1----“ COMPOUNDED ANNUAL R KIES
AVERAGE
132 -- OF CHANGE,ArEEKS END 1 4G
THE FOUR
“ SEPTEMBER 12, 1979 ‘ROM
__ THE FOUR WEEKS END IfvIG:

\

BILLIONS OF DOLLARS
134
132
_

-

130

-

128
126

JUL. 11, 1979
JUN. 13, 1979
-- MAY
9, 1979
_ APR. 11, 1979
MAR. 14, 1979
_ SE p! 13,' 1978

130
AD- USTED =EDERA L RES ERVE :red i t

14.
13.:
9.'
10..
8.'

-

128
,r~\
J

9.

-

"S . t

126
-

-

-

120

I 18

SILL IQ NS. _

1SZ2
AUG .

v A
5T

-

5 IB

JUL

120

28.S
118

116
Illl

8

llll: 111
2

1 1 1

IS 30 13 27

AUG

SEP

II

OCT

1 II 1
25

8 22

NOV

1 1 1 -LLLL | | |
6 20

DEC

3

17

JAN

31

1 1 1

14 28

FEB

1 1 1

14 28 11

MAR

1978

APR

111.1
25 B 23

MAY

SEP .5
12

30! 7
30.7

1 16

11111111 ii 11111 \
6 20

4 18

1

JUN

JUL

AUG

IS 2fl

12

2

SEP

1979

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 12, 1979
1/ RATIO OF MONEY STOCK ( Ml ) / ADJUSTED MONETARY BASE
2/ FEDERAL RESERVE CREDIT CONSISTS OF FEDERAL RESERVE HOLDINGS OF SECURITIES, LOANS, FLOAT
AND OTHER ASSETS. ADJUSTED FEDERAL RESERVE CREDIT IS COMPUTED BY SUBTRACTING TREASURY
DEPOSITS AT FEDERAL RESERVE BANKS FROM THIS SERIES. AND ADJUSTING THE SERIES FOR RE­
SERVE REQUIREMENT RATIO CHANGES. DATA ARE C0MPUTE6 BY THIS BANK.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

SI run 'IS dO >«V9 3A«3S3d 1V«3<]3d

2‘21

l Cl
SCI

S' 1 l
2' l l
2'0l

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£21
221
0'2 l
O' l l

Q3avd3dd

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801
i -oi
6'8
0‘0l

1 '01
2 ‘6
68
2'2
08
2>

8'2
2'2
£9
2 S
rv
22
S' l


http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
9'2
£’2
9'9
6' S
2'S
S>

62/S
62/8
62/fr
62/9
62/2
62/*
62/2
62/2

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:ON 10N3
sxaaM anod do
aovaaAv bhi oi
82/9/2l
82/9/6
62/2/C
62/2/2
62/9/9
62/Z/S
62/*/*
62/V/2
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() siisodaa awu iaN snid moois A3N0N

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- 1------ 1----=1 0C6
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f

MONEY STOCK ( Ml )
BILLIONS OF DOLLARS
385

i

II

u 1979
“ AUG. 1
8
15
22
29

BILLIONS OF DOLLARS
385

i—

1

rn

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

1

BILLIONS
372.2
373.5
375.4
374.2
374.2

1
A

-

A

in i

M ill

A

1111

r
A

V

V

1111

/

k

IVv

r

i

1111

m il

£V

z

K1 1 1

1111

JUL

AUG

5

10

IB 30

1 11 -HI. 1 111 .11 1

1111

SEP
OCT
1978

JAN

13 27

11

25

8 22

NOV

111

6 20 3 17 31

DEC

14

III

111

28 14 28 11

FEB

MAR

1111 6111
0 23
20

25

APR

MAY
1979

JUN

hi
4

18

JUL

_LLU_ -LLL
I 15 20 12 26
AUG

SEP

LATEST DATA PLOTTED WEEK ENDING. SEPTEMBER 5. 1979
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
9/6/78

12/6/78

2/7/79

AVERAGE OF FOUR WEEKS ENDING:

3/7/79

4/4/79

10.8
8.4
9.0
9.2
9.4

11.4
11.4
10.9
10.8

5/2/79

6/6/79

7/4/79

10.4
10.4

10. 1

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
2/
3/
4/
5/
6/
7/
8/
9/

7/79
7/79
4/79
2/79
6/79
4/79
8/79
5/79

0.9
0.6
0.8
2.9
3. 1
3.9
4.5
4.9


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

-2.0
-1 . 1
2.7
3. 1
4. 1
4.9
5.5

0.5
6.8
6.2
7. 1
7.6
8.0

7.5
8.3
8.8

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY
13.0

13.0

12.5

12.5
PRIME BANK
LOAN RATE

12.0

1 1.5

11.5
11.0
10.5

90 DAY CD'SmeK

10.0

COMMERCIAL PAPER

9.5
CORPORATE AM BONDS
9.0
8.5
8.0
7.5
7.0
MUNICIPAL
6.5

6.0

1

JUL

AUG

15 29 13 27

OCT
1976

10 24

NOV

8 22

5 19

2 18

JAN

FEB

2 18 30

13 27 II

25

• 22

8 20

3 17 31

14 28

1979
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: SEPTEMBER 14, 1979

90 DAY
CD'S wet

1979
JULY

6
13
20
27
AUG.
3
10
17
24
31
SEP.
7
14

21
28

m

PR IIC
COMMERCIAL
PAPER
4-6 MONTH

9.84
9.94
10. 10
10.29
10.23
10.25
10.53
10.81
11.08
11.36
11.84

9.62
9.75
9.83
9.98
9.98
10.07
10.32
10.56
10.87
11.24
11.69

PR <ME
BANKERS'
ACCEPTANCES
9.73
9.94
10.03
10. 17
10. 1 1
10.27
10.60
10.82
11.11
1 1.51
11.75

CORPORATE
Aaa BOWS

MUNICIPAL
BONDS M

9. 16
9.17
9. 19
9.23
9.24
9.20
9.20
9.23
9.30
9.34
9.41

6.08
6. 1 1
6. 15
6. 19
6. 14
6. 13
6. 16
6.23
6.36
6.47
N. A.

* AVERAGES OF RATES AVAILABLE.
mm BOND BUYER’S AVERAGE OF SECONDARY MUNICIPAL BONDS, THURSDAY DATA. WEDNESDAY TWO DAYS
INDEX OF 20
SEVEN-DAY AVERAGES
MARKET RATES FOR THE WEEK ENDING
n a EARUER^THAN^DATES SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS* H.9 RELEASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

0

SELECTED

INTEREST RATES

AVERAGES OF DAILY RATES ENDED FRIDAY

'

PERCENT
12.0

FEDERAL FUNDS RATE

scrr

DISCOUNT RATE

3-5 YEAR
TREASURY SECURITIES

THREE-MONTH TRI iASURY
BILL MARKET Yll :ld

4

18

I

15 28 13 27 10 24

8 22

5 18

2

16

2 16 30 13 27

APR

11

25

8 22

6 20

3 17 31

MAY

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: SEPTEMBER 14, 1979

1979
JULY

6
13
20
27
AUG.
3
10
17
24
31
SEP.
7
14 X
21
28

FEDERAL
FUNDS XX

3-MONTH
TREASURY
BILL

6-MONTH
TREASURY
BILL XXX

1-YEAR
TREASURY
BILL

3-5 YEAR
TREASURY
SECURITIES

LONG-TERM
TREASURY
SECURITIES

10.42
10.28
10.35
10.63
10.75
10.67
10.80
11.04
11 r 1 6
11.02
11.30

9. 10
9.28
9.31
9.28
9.23
9.40
9.52
9.55
9.74
10.20
10.48

8.87
9. 16
9.26
9.47
9.30
9.32
9.48
9.50
9.65
9.78
10.29

8.70
8.79
8.93
9.00
8.93
8.95
9. 15
9.28
9.41
9.84
9.98

8.71
8.82
8.91
9.00
8.98
8.95
9.02
9. 12
9.30
9.52
9.50

8.74
8.82
8.88
8.90
8.88
8.85
8.87
8.90
8.98
9. 12
9. 12

* AVERAGES OF RATES AVAILABLE.
** S|y|^-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
m ^2R^L£AI£t£PPEAR IN THE B0ARD ** GOVERNORS1 H.9 RELEASE.
NEW ISSUE RATE
C0*UTE0 BY THE FE“ RESERVE BANK OF ST. LOUIS.


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

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
560 c----1------ 1-

BILLIONS OF DOLLARS
--------- ---- =1 560

AUG.
546.6
547.9
548. 5
549.6
551.5

I 1 1 l
5 10

2

16 30

13 27

11

25

SEP
OCT
1978

6 22

NOV

6 20

DEC

3

17 31

JAN

14 28 14 20

FEB

MAR

11

25

APR

9 23

MAY
1979

6 20

4

JUN

JUL

18

I

15 29 12 26

AUG

SEP

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5. 1979
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
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 DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
9/6/78

12/6/78

2/7/79

3/7/79

4/4/79

5/2/79

6/6/79

7/4/79

6.7
8.7
8.9
10.2
1 1 . 1
1 1.5

9.4
9.4
10.9
1 1.9
12. 1

10.9
12.4
13.2
13.3

12.2
13.3
13.4

15.5
14.9

14.6

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
2/
3/
4/
5/
6/
7/
8/
9/

7/79
7/79
4/79
2/79
6/79
4/79
8/79
5/79

7. 1
7. 1
7.0
7.6
7.9
8.6
9.3
9.6


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

4.0
4.5
6.0
6.7
7.9
8.9
9.4

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILL-10148 OF DOLLARS

IT T 'T

f\

T ill

___ >._
»

1SZ2
- AUG. 1
8
15
22
29
-SEP. 5

BILLIONS OF DOLLARS
280

1—1—
BILLIONS
269.3
270.2
271.9
270.4
270.3
272.1

11

LH.JLL.

M

A /V
r\

1111

\
V

260

A

1

1

V

/V - /

1

1111

1

Vi

'M il M il

M il
^1

1

1

-

ii 11
2

IB 90

AUG

111

111

13 27 11

25

SEP
OCT
1978

1111

8 22

in

NOV

1111
3 17

LATEST DATA PLOTTED WEEK END INGs SEPTEMBER 5,

III

111

111

FEB

31

JAN

MAR

APR

14 28 14 78 11

1111 -LLL 111. J-LLL _LLL

25 0 23

MAY
1979

6 20

4

JUN

JUL

18

1

15

AUG

20 12 26

SEP

1979

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:
9/6/78

12/6/78

2/7/79

3/7/79

4/4/79

-1.7
6.7
5.4
6.8
7.2
7.3

12.4
8.4
9.5
9.3
9. 1

12. 1
12.4
11.4
10.8

5/2/79

6/6/79

7/4/79

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
2/
3/
4/
5/
6/
7/
8/
9/

7/79
7/79
4/79
2/79
6/79
4/79
8/79
5/79

-2.6
-2.8
-2.4
0.6
0.8
1.9
2.6
3.0


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

-6. 1
-4.6
0.6
0.9
2.4
3.3
3.8

7.0
7.7
7.7

10.7
9.9

8.5

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
108

billions

AUG.

SEP.

103.0
103.3
103.5
103.8
103.9
104.8

I I I I
8 22

6 20

3

17 3)

SEP
OCT
1978

14 28 14 28 11

FEB

MAR

25

9 23

APR
1979

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5, 1979
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

CURRENCY
COMPOUNDED ANNUAL RATES OF CHANGE
9/6/78

12/6/78

2/7/79

AVERAGE OF FOUR WEEKS ENDING:

3/7/79

4/4/79

5/2/79

6/6/79

7/4/79

6.7
7.9
7.9
9. 1
10. 1

8.4
8.3
9.6
10.8

9.0
10.4
11.7

10.7
12.4

14.4

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
2/
3/
4/
5/
6/
7/
8/
9/

7/79
7/79
4/79
2/79
6/79
4/79
8/79
5/79

10.8
10.4
9.9
9.6
9.6
9.4
9.8
10.3


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

9.8
9. 1
8.7
8.9
8.8
9.3
10.0

7.5
7.2
8.0
8.0
8.9
9.9

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

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

BILLIONS OF DOLLARS
3.5 r-----i------ 1--1971 MILLlQN§

SEP.

5 19
JUL

BILLIONS OF DOLLARS
—------------ ------- Z35

5

2 10 30 13 27 II 25 8 22
AUG
SEP
OCT
NOV
1978

B 20
DEC

3 17 31 14 28 14 28 II 25 9 23
JAN
FEB MAR
APR
MAY
1979

6 20
JUN

4 18
JUL

I 15 29 12 26
AUG
SEP

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 12. 1979

BUSINESS LOANS
(COMMERCIAL AND INDUSTRIAL)

BILLIONS OF DOLLARS
154

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
154

- 1- - - -1- - - 1- - -

152
150
148
146
144

- 152

“ COMPOUNDED ANNUAL RA TES
— OF CHANGE. AVERAGE IN G
— THE FOUR WEEKS END 0
— SEPTEMBER 5. 1979 FR
_ THE FOUR WEEKS ENO1NG:
— JUN.
— JUL.
— MAY
APR.
“MAR.
— DEC.
-SEP.

4. 1979
6. 1979
2, 1979
4, 1979
7, 1979
6. 1978
6, 1978

Ls.

148

25.6
24.6
25.3
27.5
24.4
21.2
17.9

-

/

142
140
138
136
134
132
130
128
126

-

sJ

S 19
JUL

r*/
MILL 10NS

1SL
AUG.

1
8
15
22
29
5

1 II

2

16
AUG

148,625
149,222
148,878
149,484
149,863
151,674

NOV

6 20
DEC

FEB

JAN

LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 5,


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

MAR

APR

MAY
1979

6 20
JUN

4 18
JUL

AUG

144

_
_

130

SEP

1979
PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

146

”

“
—
1
i f i 111 i i i i 1 1 l 13 1 17 31_m_ ii i 28.1.1. L nil -LI 1 11ii11111111'
Li. 14 28 14
1 15 29 12 26
11 25 9 23
30 13 27 11 25 8 22
SEP
OCT
1978

150

142
140
138
136
134
132

128
126

0

12
CERTIFICATES OF DEPOSIT
LARGE COMMERCIAL BANKS
JILL IONS OF DOLLARS
06 ----- 1-------1---

WEDNESDAY FIGURES
NOT SEASONALLY ADJUSTED

ILL IONS OF DOLLARS

BILLIONS

LATEST DATA PLOTTED WEEK END INGt SEPTEMBER 5, 1979
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