u.s. financial data: week ending june 12, 1968

. ~ • RESEARCH LIBRARY 1 Federal Reserve 3anil!

•

finnnrm nata•

of St. Louis------------------_ . .1 Week ending June 12, 1968W27m

MONEY STOCK (Page 5)

The nation's money stock, which consists of private demand deposits and currency in the hands of the public, averaged $186.9 billion in the four weeks ending June 5, up at an average annual rate of 9 per cent in the three months since late February. In only 1 per cent of all possible consecutive three-month ^riods since 1948 has money risen at a faster rate.Tn the previous year money grew at a 6.4 per cent rate. The trend rate in growth of money from 1957 to 1967 was 2.6 per cent.

CERTIFICATES OF DEPOSIT (Page 6)In the four weeks ending June 5 certificates

of deposit at large commercial banks averaged $19.5 billion, down at an annual rate of 27 per cent since late February. In comparison, CD's changed little in the previous three months, and between 1964-1967 they grew at an average rate of 18 per cent. In large part, this decline reflects the increasing attractiveness of the yields on other financial assets when compared to yields on certificates of deposit which are restricted

Regulation Q. The decline may become even more ute in the next few weeks since a large proportion

of outstanding CD's mature in June.

INTEREST RATES (Pages 10 & 11)

Since early April, yields on three-month Treasury bills have been higher than the yields on long-term Government securities, but the patterns of these yields have been similar. The yields of both long and short-term Government securities increased from early April to peaks reached during the week of May 24, and then both yields dropped about twenty basis points.

The decline in yields beginning in late May probably reflected in part, an increased expectation that a tax bill will soon be passed. It is felt by many analysts of the bond market that a less stimulative fiscal policy will lower interest rates by reducing inflationary pressures and by lessening the amount of funds for which the Treasury must compete in the open market.

The recent decline in interest rates may also reflect the very rapid injection of money into the economy in recent months. When money rises sharply, the greater volume of lendable funds initially tends to cause rates to decline, but after a brief lag demands for credit and inflationary pressures frequently increase, placing a strong upward force on rates.

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. LouisReleased: June 14,1968

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

Millions of Dollars

FEDERAL RESERVE CREDIT [L Averages of Daily Figures

Seasonally ad justed by this bank.[2

54

53

Billions of Dollars

54

52

51

50

k-9

48

47

46

45

44

43

-h 7-J1957-1967

Federal ReserveHoldings

11. P9 So. oS 50.3±. 50.1y Si- oo SO. 37 SO. 01 SO. 0,0 SO. OS) SO Ml SC SC

Credit SO. SI 50-10 5/ of SI 3J / SC

Si. /? SO .19 S/.S7 Si. IS si a 3 f/./7

1968 CLfW, i

10 n J1

^'1Federal Reserve Credit

Federal Reserve Holdings of U.S* Government and Federal Agency Securities

44-

Borrovings

Federal Reserve Credit excludes float and a few minor items. Data prior to Jan. l8, 1968 adjusted for the estimated effect of reserve requirement changes. Seasonal adjustment for Federal Reserve Holdings computed by this bank using data ending December 1967 Borrowings from Federal Reserve not seasonally adjusted. Current unadjusted data appear in the Board's H.4.1. release.NT 1 I I 1 II I 1 I I I 1 I I I I I I II 1 11 1 I 1 I

Latest data preliminarylatest data plotted week ending: june 12, 1968

1 15 29 13 27 10 24 7 21Nov. Dec. Jan. Feb.

12 26 10 2415 29Oct.Mar. June

53

52

51

50

49

48

47

46

45

44

43

17 31 l4 28 12 26 9 23May June July Aug.

1967Prepared by Federal Reserve Bank of St. Louis


Billions of DollarsI ' 1 ' ' ' '~T TOTAL EFFECTIVE RESERVES

~/7tg AS • I i>_ U Ai.eSL _ u.o/_ -■?

REwVESAll Member Bc^^s in the Nation

Averages of Daily Figuresi i i~r ~t "i i « 1 i i'll i t "i r r r r r~

-Seasonal adjustment computed by this bank using data ending December 1967* Unadjusted data appear in the Board's H.4.1. release.

-i—i—i—i—i—i—i—i—i—rrBillions of Dollars

”i—i—i—n~i—i i i—n—r4-14-U444444-1427.5 —

TOTAL RESERVESAnnual rates of change, average of four weeks ending June 12, 1968 from four weeks ending:Mar. 13, 1968 - 3. VDec. 13, 1967 tS-aSept. 13, 1967 -hJune 14, 1967 + 7-2-

-4ata prior to Jan. 18, 1968 adjusted for

estimated effect of reserve requirement changes. - 27-5

27.010 AS.fgn m.*s di asms

y>iM‘ 1 asms S-kl

f A S.S3 4L AS.S3

■Joac S' o»*v. 7 3/A AS, H f

■hJ.31957-1967

Total

mRESERVES AVAILABLE

FOR PRIVATE DEMAND DEPOSITS

LUfr 1113IS >73°3° IJ./o

17 h.ojl Xu>'3 17.3*1 1 to /7-Sit /; 1773 Ai Ik asl

SSi-I-JSeasonal adjustment factors

were computed using data — through early 196?.

Reserves Available for — Private Demand Deposits

Latest data preliminary Latest data plotted week ending June 12,

4 lfe

Oct.June12 2Z 9 23July Aug.

1967

—■'Data prior to Jan. 18, 1968 adjusted forestimated effect of reserve requirement 1 ^957.1967

— changes.T>

/•«» I 1 (,$8 ' / 17.30

n. S3 AA / 7Ml «?<? /?.£/

June S 17Stm n.ity-:

RESERVES AVAILABLE FOR PRIVATE DEMAND DEPOSITS

Annual rates of change, average of four weeks ending June 12, 1968 from four weeks ending:Mar. 13, 1968 ' 'Dec. 13, 1967 Sept. 13, 1967 June 14, 1967

lb.4

29 13 27 Nov. Dec.

10 24 Jan.

7 21 Feb.

15 29 12 2bMay June 1968

10 24 July

7 21 Aug,

4 18 Sept.

Prepared by Federal Reserve Bank of St. LouisDigitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONEY STOCK PLUS TIME DEPOSITS* 4Averages of Daily Figures

Billions of Dollars Billions of DollarsSeasonally Ad usted

—Annual rates of change, average of —f four weeks ending June 5, 1968

‘ from four weeks ending:^ Mar. 6, 1968 V

Dec. 6, 1967

1968

_l June 7, 1967

1957-1967

37 S-)--

Current data appear in the Board's H.6 release. Back data appear in the August 1967 Federal Reserve Bulletin.For trend of money stock plus time deposits by months see this bank's monthly release entitled "Monetary Trends".Latest data preliminary

Latest data plotted week ending: June 5, 1968I I I I I I I I 1 1 I I I I 1 I 1.1 I I 1 I I II I I I

7 21 6 20 3 17 1 15 29 12 26 10 24 7 21 U 186 20 4 18 1 15 29 13 27 10 2417 31 l4 28 12 26 9 238 22 5 19 3June July Aug. Sept.July Aug. Sept.

Prepared by Federal Reserve Bank of St. Loui;Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

MONEJt STOCK* Averages d^^aily Figures

Seasonally Ad ustedBillions of Dollars Billions of Dollars

WEEKLY DATA 1968

f)t< i ,ZH.1 .c ISM - 11 if7 /

/<W.C

n/' • '

— Annual rates of change, average of four weeks ending June 5, 1968 from four weeks ending:

_ Mar. 6, 1968 -I-?-0_ Dec. 6, 1967_ Sept. 6, 1967 V-^.7. June 7, 1967 -f&.C

1957-1967

13-week centered, moving average .

Weekly

* Current data appear in the Board' s H. 6 release. Back data appear in the August 1967 Federal Reserve Bulletin. For trend of money stock by months see this bank's monthly release entitled "Monetary Trends".

_l_ Latest data preliminary_4- Latest data plotted week ending:

26 10 'it y a it 1819 3 17 31 14 28 12 26 9 23 6 20 4 18 1 15ir. May June July Aug. Sept. Oct. No'

19678 22 5

June


6Billions of Dollars

CERTIFICATES OF DEPOSIT [1_ Large Commercial Banks Billions of Dollars

Wednesday Figures

Annual rates of change, seasonally unadjusted dataaverage of four weeks ending June 5, 1968 from four weeks ending:Mar. 6, 1968 - Z 7. 3Dec. 6, 1967 — /j. 7

June 7, 1967

1964 - 1967

22.0

21.0

20.0

Millions of Dollars 1968

10, /? 4

Latest data preliminaryLatest data plotted: June 5, 1968

Current and year ago data appear in the Board's H.4.2. release.1/ Negotiable time certificates of deposit

in denominations of $100,000 or more.

8 22 5 19 3 17 31 14 28 12 26 9 23 4 18 1 15 29 13 27 10 24 7 21 6 20 3 17 l 15 29 12 26 10 24 7 21 4 18June July

Prepared by Federal Reserve Bank of 9t. LouisDigitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

7SITS*All Commercial BanksBillions of Dollars Billions of DollarsAverages of Daily FiguresSeasonal usted

Annual rates of change, average of four weeks ending June 5, 1968 from four weeks ending:

~ Mar. 6. 1968 ^ S.?

1968

June 7, 1967

1957-1967

till P

* Current data appear in the Board's H.6 release. Back data appear in the August 1967 Federal Reserve Bulletin. For trend of time deposits by months see this bank's monthly release entitled "Monetary Trends".

_Latest data preliminary--- Latest data plotted week ending: June 5, 1968

22 5 19 3 17 31 lk 28 12 26 9 23 6 20 k 18 1 15 29 13 27 10 2k 7 21 6 20 3 17 1 15 29 12 26 10 2k 7 21 k 18:t. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.

1968July Aug.June


8Millions of Dollars

I

*

1,900

1,8001,700

1,600

1,500

%1,2001,1001,000

900

800

700

600

500

400

300

200

»0

- 100 - 200 - 300

- 400

- 500

- 600

- 700

- 800

- 900

-1,000 -1,100

EXCESS FREERESERVES BORROWINGS RESERVES

v BIWEEKLY DATA

' ff\a.a,. 2-7 X8S toS 8 -310.4 Ad/. 1C 3lo« uV - 303' iV 3a 7 707 -3801 enw J -H3.0' ' 3-T6, UU -33SK 5 7tL - i-L>S

WEEKLY DATA20 MW ‘7J3 -31?

■ i7 Ul sea. - Wj 331 ~J(S

■ ID HOk -z*o■ n it3‘ X>4 U.k> LSI -J3.S

31 O -318■ f g 38/ SA3 -eta-

378 7/J- -3/V3/Y -3ST

J? 310 7t>t - 314'3^- $ 317 1S9 -S+a-' ia e t78 -103 P

BORROWINGS AND EXCESS RESERVES All Member Banks in the Nation

Averages of Daily Figures

TNet

Millions of Dollars

Latest data preliminaryLatest data plotted: one week ending June 12, 1968

I I I I I I I I I I I I I I I 1 I I 1.1 I, II I I I 1 I I I1 15 29 12 26 10 24 7 21 5 19 2 16 30 13 27 11 25Mar. Apr. May June July Aug. Sept. Oct.

A. !9678 22 6 20 3 17 31 14 28 13 27 10 24Nov. Dec. Jan. Feb. Mar. Apr.

T

BIWEEKLY SETTLEMENT PERIODS _

✓ KV

/ n-Excess Reserves /

L ! |Z

z //

i 0s.

L \ / V . r\ •* •m j 1 <1 < I ' “ 1Free Reserves

■ ■ | •k> ig V: LV

V\\

s>v s\ s

s, Jr \X 1-

<L01 UTTTTK.01

ik

-

8 22 5 19 3 17May June July

1968

1,900

1,800

1,700 1,600

1,500

l,4oo

1,300

1,200 1,100 1,000 ' 900

800

700

600

500

400

300

200

100 0

- 100 - 200 - 300

- 400

- 500

- 600

- 700

- 800 - 900

-1,000 -1,100

31 14 28 11 25 Aug. Sept.

Prepared by Federal Reserve Bank of St. LouiDigitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Billions of Dollars 71

BUSINE0 LOANS Large Commercial Banks

Wednesday Figures

11 in mBillions of Dollars

71Seasonally adiusted bv this bank.

:-

1 (0 O.Ui J/Nf

-

-

--

Millions or Dollars SEASONALLY

.0,0 TTNAfl TTTSTFn An TTT^TFn ./m*fi 67.74 7 6.7, HS 7

/S <*1,1.10 6 /,n 67,V«7 6 7,6 3031 <*7.0S9 4 7,3?/\w.s 0737? f uion 7

1 1 1 1 1 1 1 1 1 1 > 1 > 1

-

J

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

L..

ii1 Hi t Hi Hi HHi 11 II f" 11111

TO —

Annual rates of change, average of four weeks ending June 5, 1968 from four weeks ending:

. Mar. 6, 1968 1 /? O, Dec. 6, 1967 * 'f+ Sept. 6, 1967 + 1.3—June 7, 1967 . p 7

69-- 1960-1967

66 ■

65-

64-

63-

62-

61-

_Latest data preliminary ,9 -Latest data plotted: June 5, 1968n-3:

8 22Mar.

5 19 3 Apr.

17 31 May

l4 28 June

i~mr

70

69

68

67

66

65

64

63

62

61

60

59

12 26 9 23July Aug.

1967

15 29 13 27 10 24 7 21 6 20 3 17 1 15 29 12 26 10 24 7 21 4 18Nov. Dee. Jan. Feb. Mar. Apr. May June July Aug. Sept.

1968


.00

.50

.00

.50

.00

■ 50

.00

.50

.00

1.50

1.00

1-50

I

4

ntYIELDS ON SELECTED SECURITIES

Averages of Daily Rates Ended Friday PerTTTTTTTTTT

3-MONTHTTTTTTTTT

TREAS. 3-5 LONGCORPORATEBILL YEAR TERM Aaa

0 f>r. 3 S.2-0 S.S3 S.aS 4 xo/X- S 3S S.J-1 k iM11 S. 3? S.JO S.a8 (c i-t>-~4 S SO Sgg S.33 d u

4t CUJ 0 S.SO SSi S33- cat' )0 S SJL Sii S.23. C, iSn Ski sis S 38 417Lh S.S A iol SSZk- 4 Zg3\ S. 70 SMI S.-/J k a.?

7 S-kk s go s30 k,Z?*n 5.1o S.n S 30 6.^

____L

.Latest data plotted are averages of rates available for the week ending: June 14, 1968

tttttn i trrrrn-rr -n; m~r X8 22 6 20 3 17 1 15 29 12 20 9 23 8 22 5 19 3 17 31 l» 28 12 26-ept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July

1968

-

-

■CorporateAaa Bonds . ■ * H * La- ^

, .. .* 4V •' 1 • •

_|>AlL >** <* ■ ■ a ■

Long-rerm /t*1 rra Gove rnment Bonos J -if* *

♦ • .. ■ •*L* r* .. r ?/♦*

%»* *«« •*« ••1*

.. >«■ '■«

Three-Mon ;h 'TreasuryBill Market Yield _

1 1 1 1 1 1 1 1-r -- _

r~ —rT

9 23 6 20 Aug. Sept10 2k 7 21 5 19 2 16 30 14 28 11 25

Mar. Apr. May June July Aug.„ 1967

Prepared by Federal Reserve Bank of St.OF RATES AVAILABLE


I 11SELECTED SHORT-TI^ INTEREST RATESa__________ -I n • 1.. . c I I c • Per CentPer Cent

PRIMECOMMERCIAL PRIME LARGE

PAPER BANKERS' 90 DAY FEDERAL ’S 4-6-MONTH ACCEPTANCES CD'S** FUNDS,r. £ £.iS S <*3 3.70 3.73

U, S.7S 3.7 3 3.7 O S.tiI? S.lf S. 7C•U S.SS 3.8*

3373 6 OSt, 00 4. 13 4. 9 J4. /J tp/3 3.SSL.OO3.105. %1

1*ne 7

Prime Commercial Paper 4-to-6 Month

Prim<Acceptances

Federal Funds Rate.Discount Rate

Latest data plotted are averages of rates available for the week ending: June 14, 1968

9 23 6 2017 31 14 28 12 26rj 1 15 29 12 26 9 23 8 22 530 14 28 11 25 8 22 6 20 310 24 7 21 5 19 2JuneAug. SeptJune

* AVERAGES OF RATES AVAILABLE Prepared by Federal Reserve Bank of St. Louis**S0URCE: SALOMON BROTHERS AND HUTZLER

SECONDARY MARKET RATE ON 90-DAY PRIME CD'S.


u.s. financial data: week ending june 12, 1968

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