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Interest Rates Move Lower in 1992
Federal Reserve data indicate that declining short- term rates contributed to a generally lower interest rate pattern during 1992. Rates on all terms of debt instru- ments were lower last year than in 1991. INTEREST RATES Averages of Daily Rates
Percent
OIl
Prime
Oct NovDec Jan Feb Mar Apr MayJun Jul AugSep Oct NovDec 91 92 Source: Federal Reserve System The three-month Treasury bill rate began 1992 at 3.8 percent, fell to 2.9 percent in October, then climbed to 3.2 percent in December. Last year's 3.4 percent average rate is two percentage points below the 1991 mean. Aaa corporate bond rates moved only modestly lower in 1992, beginning the year at 8.2 percent and
ending at 8 percent. Last year's 8.2 percent average rate is only slightly below 199 l's 8.8 percent mean. The prime rate which banks charge their lowest-risk corporate customers held steady at 6.5 percent between January and June, then dropped to 6 percent for the rest of the year. The average of these rates is more than two percentage points below 199 l's 8.5 percent mean. Interest rates are important indicators of financial market conditions because they affect both the cost of funds to borrowers and the income levels of those who invest in interest-bearing securities. Because of the widely- held concern over this indicator, the Federal Reserve collects and publishes interest rate levels on a regular basis. The Cross Timbers Business Report is a quarterly publication which is presented as a service to area residents by Tarleton State Uni- versity. This report is distributed without charge to any interested person or organization. To subscribe, write William L. Beaty, Editor, P.O. Box T-2006, Tarleton Station, Tx 76402, or call 817-968-9021.
Department of Social Sciences Tarleton State University Stephenville, Texas 76402
Tarleton State University. Department of Social Sciences.Cross Timbers Business Report, Volume 7, Number 2, Winter 1993,
periodical,
Winter 1993;
Stephenville, Texas.
(https://texashistory.unt.edu/ark:/67531/metapth298197/m1/4/:
accessed April 27, 2024),
University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu;
crediting Tarleton State University.