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TA1

l

Week ending: September 3, 1980

IBRARY
2 8

Short- and long-term interest rates have rebounded from their
precipitous decline this spring. Since the second week of June, most
short-term interest rates have increased about 250 basis points. This
compares to an average decline of about 800 basis points from late
March to early June. Unlike other short-term rates, however, the
federal funds rate continued to decline through July, reaching its low
point in the week ended July 25. Since then the funds rate has increased
along with other market rates. Even with the recent increases, the funds
rate in the most recent week was only 79 basis points above its level in
the second week in June. In contrast, the federal funds rate dropped 810
basis points during the period from the week ending March 28 to the
week ending June 13.
Most longer-term interest rates have also risen over the past
few months. After declining about 300 basis points, on average, from
the week ending March 28 to the week ending June 13, most longer-term
rates have regained more than half of the previous drop. Five-year
Treasury securities, for example, have increased 221 basis points since
the week ending June 13, or about 47 percent of the previous decline.
Similarly, the yield chi municipal bonds has recovered about 70 percent of
the previous 191 basis point decline.
CHANGES IN YIELDS ON SELECTED SECURITIES*
(Weekly averages of daily figures)
Week Ending
March 28
to
June 13
Federal funds**
90-day certificates of deposit
4-month prime commercial paper
6-month Treasury bills
1-year Treasury bills
5-year Treasury securities
Long-term Treasury securities
Corporate Aaa bonds
Municipal bonds

-810
-946
-890
-876
-716
-475
-283
-247
-191

June 13
to
September 5
79
239
236
331
258
221
139
137
132***

* Changes in basis points.
** Seven-day averages for week ending Wednesday two days earlier
than date shown.
**• Based on <feta from week ending August 29.


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

Prepared by Federal Reserve Bank o< St. Louis
Released: September 5, 1980

2

ADJUSTED MONETARY BASE
AVERAGES OF DAILY FIGURES

SEASONALLY ADJUSTED BY THIS BANK

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

166
BILLIQNS
_

161.4

JUL.
AUG.

162.1
161 .9
163.0
163.0
163.8

I I I I

I I I I
1

15

29

12

26

10 24

2

7 21

NOV

16 30

13

27

FEB

DEC

12

26

9 23

MAR

1979
LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 3,

1980

THE ADJUSTED MONETARY BASE CONSISTS OF: ( I ) MEMBER BANK RESERVES AT THE FEDERAL RESERVE
BANKS, (2) CURRENCY IN CIRCULATION (CURRENCY HELD BY THE PUBLIC AND IN THE VAULTS OF
C0*At6ciAL BANKS 1, ANO (3) AN ADJUSTMENT FOR RESERVE REQUIREMENT RATIO CHANGES.
THE
MAJOR SOURCE OF THE ADJUSTED MONETARY BASE IS FEDERAL RESERVE CREDIT.
DATA ARE COMPUTED
BY THIS BANK.
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:

9/5/79

12/5/79

2/6/80

3/5/80

4/2/80

4/30/80

8.0
8.3
8. 1
7.5
7.3
7.4
8.0
8.5

8.9
8.4
7.4
7.2
7.2
8. 1
8.7

8.2
6.6
6.4
6.7
7.9
8.8

5. 1
5.5
6.0
7.6
8.6

4.9
5.7
7.7
8.9

6.8
9.0
10.2

6/4/80

7/2/80

10.7
11.9

13.8

TO THE AVERAGE
OF FOUR WEEKS
END 1NG:
2/ 6/80
3/ 5/80
4/ 2/80
4/30/80
6/ 4/80
7/ 2/80
8/ 6/80
9/ 3/80


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

ADJUSTED BANK RESERVES 1/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

52

PILLIONS
48.4

49.5

I I I I
5

NOV

19

2

16 30

13

27

12

26

9

23

DEC

I960
LATEST DATA PLOTTED WEEK ENDING: AUGUST 27.

1980

1/ ADJUSTED MONETARY BASE LESS CURRENCY HELD BY THE NONBANK PUBLIC (MEMBER BANK RESERVES AT
FEDERAL RESERVE BANKS (♦) CURRENCY HELD BY COhMERC IAL BANKS).

ADJUSTED BANK RESERVES
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
8/29/79

11/28/79

1/30/80

2/27/80

3/26/80

4/30/80

5/28/80

6/25/80

7.9
8. 4
7.6
7.2
5.2
6.3
5.9
6.9

10.7
8.7
7.7
4.8
6.4
5.8
7.2

7.0
6.0
1.9
4.7
4.2
6.3

3.7
-0.8
3.2
3.0
5.5

-2.4
3.4
3.0
6.0

2.7
2.5
6.5

8.7
12.2

9.9

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1 /30/80
2/27/80
3/26/80
4/30/80
5/28/80
6/25/80
7/30/80
8/27/80


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

3

I
l

4

MONEY STOCK (MIA)
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
393

ILL IONS OF DOLLARS
------ ----------- ----------- 395

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

BILLIONS
373.0
373.2
382.9
378.6

1- JUL.

379.3

1

15 29

12

26

10 24

7

21

NOV

5

19

2

16

30

I I I 1-LL
13 27

FEB

DEC

12

26

9 23

7

21

4

18

2

16 30

13 27

10 24

MAR
1980

LATEST DATA PLOTTED WEEK ENDING-. AUGUST 27, 1980
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.

asi-MKT=-8V THE “

MONET STOCK (MIA)
COMPOUNDED ANNUAL RATES OF CHANGE,

AVERAGE OF FOUR WEEKS ENDING-.

8/29/79

11/28/79

1/30/80

2/27/80

3/26/80

4/30/80

5/28/80

6/25/80

4.2
5.5
4.4
1.3
1.4
2.3
2.8
4.4

6.5
4.3
-0.6
-0.1
1.3
2.1
4.3

5.0
-3.4
-2.1
0.3
1.6
4.5

-9.9
-6.3
-2.5
-0.4
3.2

-7.9
-2.5
0. 1
4.3

6.5
6.8
11.0

8.8
13.7

15.0

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/30/80
2/27/80
3/26/80
4/30/80
5/28/80
6/25/80
7/30/80
8/27/80


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

PREPARED BY FEDERAL RESERVE BAhK OF ST.

LOUIS

MONEY STOCK ( MlB )
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

1980

_

AUG.

BILLIONS OF DOLLARS
15

BI L.L IQNS
394.3
404.7
400.6
400.9
401.4

I I I I

I I I I
5

NOV

19

2

IB

30

13 27

12

26

9 23

7

21

DEC

1980
LATEST DATA PLOTTED WEEK ENDING: AUGUST 27,

1980

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.
MIB CONSISTS OF MIA PLUS OTHER CHECKABLE DEPOSITS AT ALL DEPOSITARY INSTITUTIONS.

MONEY STOCK ( MIB )
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
8/29/79

11Z28/79

/30/80

2/27/80

3/26/80

4/30/80

5/28/80

7.3
8.5
12.9

12.6
17.2

6/25/80

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1/30/80
2/27/80
3/26/80
4/30/80
5/28/80
6/25/80
7/30/80
8/27/80

4.9
6. 1
5.2
2.5
2.3
3.4
4. 1
5.8


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

7.6
5.6
1.2
1.0
2.8
3.9
6.2

6.0
-1 .4
-1 . 1
1.8
3.4
6.4

-7.3
-5. 1
-0.7
1.8
5.4

- 7.0
- 0.7
2.3
6.6

18. 1

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

5

6

YIELDS ON SELECTED SECURITIES
AVERAGES OF DAILY RATES ENDED FRIDAY

PERCENT
21.0 r

PERCENT
-Zl 21 0

20.0

20.0

17.0
16.0

PRIME BANK
LOAN RATE

14.0

90 DAY CD'S

13.0

12.0
COMMERCIAL PAPER

CORPORATE

Aaa

BONDS
10.0

Cl PAL

20

3

17

31

14

SEP

28

12 26

9 23

7 21

OCT

1980
LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: SEPTEMBER 5,

1980
JULY

AUG.

SEP.

4
1 1
18
25
1
8
15
22
29
5 *
12
19
26

90 DAY
CD'S
8.70
8.63
8.70
8.50
8.93
9.29
9.46
10. 13
10.80
10.73

PRIME
COMMERC1AL
PAPER aaec
8.38
8.31
8.37
8.31
8.64
8.90
9. 16
9.93
10.44
10.39

PRIME
BANKERS'
ACCEPTANCES
8.66
8.58
8.55
8.44
8.97
9. 14
9.39
10.14
10.77
10.58

CORPORATE
Aaa BONDS
10.84
10.94
11.09
11.11
11.33
11.44
11.57
11.70
11.88
11.90

1980

CORPORATE
Baa BONDS

MUNICIPAL
BONDS »

12.66
12.61
12.66
12.65
12.70
12.97
13.07
13.28
13.37
13.52

7.88
7.95
8.03
8.19
8.59
8.61
8.53
8.68
8.85
N. A.

* AVERAGES OF RATES AVAILABLE.
0F 20 MUNICIPAL BONDS, THURSDAY DATA.
*3» DATA ARE 4-MONTH COMMERCIAL PAPER RATES.
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
20.0

PERCENT
20.0

19.0

19.0
18.0
17.0
16.0

FEDERAL FUNDS RATE
15.0

15.0
14.0
13.0

3-MONTH V
TREASURY BILL

12.0
SCOUNT
RATE

11.0
10.0

5-YEAR
TREASURY SECURITIES

9.0
8.0
7.0
6.0

3

17 31

14 28

12

26

9

23

7

0

21

SEP
OCT
1979

1980

LATEST DATA PLOTTED ARE AVERAGES OF RATES AVAILABLE FOR THE WEEK ENDING: SEPTEMBER 5, 1980

1980
JULY

AUG.

SEP.

4
1 1
18
25
1
8
15
22
29
5 *
12
19
26

FEDERAL
FUNDS K*
9.41
9.26
8.98
8.68
8.98
9.60
8.85
9.35
10.03
10.47

3-MONTH
TREASURY
BILL
7.92
8.08
7.98
7.93
8.44
8.58
8.60
9.41
10.01
9.79

6-MONTH
TREASURY
BILL *%*
8. 10
8. 1 1
8. 1 1
7.91
8.28
8.87
8.89
9.77
10.25
10.25

1-YEAR
TREASURY
BILL
7.86
7.91
7.93
7.94
8.43
8.61
8.94
9.85
10.28
9.81

5-YEAR
TREASURY
SECUR1T1ES
9.47
9.46
9. 44
9.46
9.92
10. 12
10.47
11.21
11.69
11.29

LONG-TERM
TREASURY
SECUR1T1ES
10.05
10.13
10.16
10.17
10.51
10.65
10.86
11.02
11.26
11.03

* AVERAGES OF RATES AVAILABLE.
»« SEVEN-DAY AVERAGES FOR WEEK ENDING WEDNESDAY TWO DAYS EARLIER THAN DATE SHOWN.
CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.9 RELEASE.
*am new issue rate
RATES ON LONG-TERM TREASURY SECURITIES ARE COMPUTED BY THE FEDERAL RESERVE BANK OF ST. LOUIS
TREASURY BILL YIELDS ON 01SCOUNT BASIS.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

7

8

MULTIPLIERS^
CURRENCY OF MONEY STOCK MEASURES 2/
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

RATIO
2.9

MONEY MULTIPLIERS

RATIO

! 460
1463
I I I I

1 1 i I 1 1 I 1 1..1.1.1J-1..1.L1.
LATEST DATA PLOTTED WEEK ENDING: AUGUST 27, 1980

BILLIONS OF DOLLARS
16

BILLIONS OF DOLLARS
1 16 --------- 1------------1--------- 1------------

-

COMPOUNDED ANNUAL RAT ES
OF CHANGE, AVERAGE OF
---- THE FOUR WEEKS ENDING
AUGUST 27. 1980 FROM
- THE FOUR WEEKS ENDING
-----JUN.
MAY
- APR.
MAR.
-

25,
28,
30,
26,

NO V'. 28!
AU G. 29,

1980
1980
1980
1980

-

-

13.2
11.7
11.6
9.8

1979
1979

CURRENCY

9.2
9. 1

-

-

-

-

B ILLIO N5

l980
JUL ■ il

sir
l-LL ..IJ-l-L 1 1 1
JUL

1 1 1 1

I 15 29 12 26 10 24
AUG
SEP
OCT
1979

LLL 1 1 1

2

1 1 1

i ii i

7 21

NOV

DEC

16 30

JAN

LATEST DATA PLOTTED WEEK ENDING: AUGUST 27,

13 27

FEB

1 1 1 1

111
12

MAR

26

-

13.4
12.9
1 3! 5

_
_

1 1 1

1 1 1

1111

7 21

23

APR

11:3

AUC

4

2

MAY
1980

18

16 30

JUL

mini’
13 27

AUG

10 24

SEP

1980

1/ RATIO OF MONEY STOCK (MIA) OR (M1B> TO ADJUSTED MONETARY BASE
2/ CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS' H.6 RELEASE.


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

MIA )

COMPONENT OF MONEY STOCK

DEMAND DEPOS

AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS
280 ----------1------------- 1-----

BILLIONS OF DOLLARS
---------1---------- ----- ----- 280

BILLIONS
JUL.

260.7
260.6
269.5
265.7
265.7

jUJXLLL29
15

12

26

10

24

7

21

NOV

5

19

2

16 50

13

27

12

2

26

16

50

13 27

AUG

DEC

10

24

SEP

1979
LATEST DATA PLOTTED WEEK ENDING: AUGUST 27,

1980

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

DEMAND DEPOSIT COMPONENT OF MONEY STOCK I MIA)
COMPOUNDED ANNUAL RATES OF CHANGE, AVERAGE OF FOUR WEEKS ENDING:
8/29/79

11Z28/79

1/30/80

2.6
4.4
2.8
-1 .3
-1.2
-0. 1
0.4
2.5

5.8
2.7
-3.7
-3.3
-1.5
-0.5
2.3

3.5
-7.4
-5.9
-2.9
-1.4
2.5

2/27/80

3/26/80

-15.8
-1 1.5
-6.6
-4.0
0.7

-13.6
-6.6
-3.5
2.1

4/30/80

5/28/80

6/25/80

4.9
5.1
10.7

7.9
14.5

16. 1

TO THE AVERAGE
OF FOUR WEEKS
ENDING:
1 /30/80
2/27/80
3/26/80
4/30/80
5/28/80
6/25/80
7/30/80
8/27/80

t


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

9

10

SAVINGS PLUS SMALL TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
475
470

460.4
460.8

465

463.4
464.2

460
455
450
445
440
435
430
425

I I I I
3

NOV

18

2

16 30

DEC

13

27

FEB

12

26

8 23

7

21

MAR

I960
LATEST DATA PLOTTED WEEK ENDING: AUGUST 27,

I960

CURRENT DATA APPEAR IN THE BOARD OF GOVERNORS’ H.6 RELEASE.
TIME DEPOSITS ISSUED IN DENOMINATIONS OF LESS THAN tIOO.OOO.

SAVINGS PLUS SMALL TIME DEPOSITS
COMPOUNDED ANNUAL RATES OF CHANGE
8/29/79

11/28/79

AVERAGE OF FOUR WEEKS ENDING:

1/30/80

2/27/80

3/26/80

4/30/80

5/28/80

6/25/80

6.4
9.4
8.5
9. 1
10. 1
10. 1

12.0
10.0
10.4
11.2
1 1.0

10.5
10.8
11.7
11.4

8.6
10.7
10.5

13.0
12. 1

12.3

TO THE AVERAGE
OF FOUR WEEKS
ENDING:'
1/30/80
2/27/80
3/26/80
4/30/80
5/28/80
6/25/80
7/30/80
8/27/80

7.9
7.3
7.5
8.5
8.2
8.5
9. 1
9. 1


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

6. 1
6.8
8.5
8. 1
8.5
9.3
9.4

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
1980
JUL.

billions of dollars

MILLIONS

30

3

1348

4

18

2

16 30

13

27

10 24

1980
LATEST DATA PLOTTED WEEK ENDING: SEPTEMBER 3,

1980

BUSINESS LOANS
(COMMERCIAL AND
BILLIONS OF DOLLARS
168
166
164
162
160
158

152
150
148

BILLIONS OF DOLLARS
168

COMPOUNDED ANNUAL RAT ES
—OF CHANGE, AVERAGE OF
- THE FOUR WEEKS ENDING
— AUGUST 27, 1980 FROM
- THE FOUR WEEKS ENDING
—
~
—
—
-

156
154

INDUSTRIAL)

WEEKLY REPORTING LARGE COMMERCIAL BANKS
SEASONALLY ADJUSTED

JUN.
MAY
APR.
MAR.
FEB.
NOV.
AUG.

25.
28,
30,
26,
27,
28,
29.

1980
1980
1980
1980
1980
1979
1979

166
-

164
-

13.2
8.6
2.4
1.0
1 .0
8.0
8.0

A

/A A

-

/
/=L
-

-

A

-

-

/

N

-

-

-

-

146
1 98C

144
142
140
138

MILLIONS

162
160
158
156
154
152
150
148
146

144

-

1 1 1

JUL. 23
158,848
30
159,085
AUG. 6
160,572
13
161.251
20
161,254
27
162,428
11111111111
1 1 1

7

4

-

Ill -_L1

1 1

1 1 1

1 Ll.l.

11 i
7

SEP

OCT

21

i
5

i I
IB

111

im.
2

16 30

JAN

13 27

FEB

1979

i i i
12

MAR

III!
26

9

23

APR

21

MAY
1980

18

30

JUL

13 27

AUG

~
~
~
—
—
L

10

SEP

LATEST DATA PLOTTED WEEK ENDING: AUGUST 27, 1980


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

PREPARED BY FEDERAL RESERVE BANK OF ST. LOUIS

11

142
140
138

12
LARGE TIME DEPOSITS
ALL COMMERCIAL BANKS
AVERAGES OF DAILY FIGURES
SEASONALLY ADJUSTED

billions

of dollars

BILLIONS

3 It
NOV

2 II N IS 17 I) 21

t 23

7 21

4 It

2 It SO IS 27 10 24

DEC

LATEST OATA PLOTTED WEEK ENDING. AUGUST 27.

IMO

CURRENT OATA APPEAR IN THE BOARD OF GOVERNORS' H.8 RELEASE.
TtIC DEPOSITS ISSUED IN DENOMINATIONS OF tlOO.OOO OR MORE.


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Federal Reserve Bank of St. Louis

PREPAREO BY FEDERAL RESERVE BAN< OF ST. LOUIS

^ *

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