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Slight downward pressure
What does the general business outlook suggest about the trend of long-term rates in 1961??
It suggests that during the next several months, through the spring of 1961, the demand for long-term capital funds may be moderately lower and that interest rates may tend to move a little lower, especially the rates on Federal, state, and local bonds, as well as those on publicly offered corporate bonds.
However, as witnessed by the large corporate bond calendar at present, as well as the record amount of municipal bond issues approved by voters, the over-all demands for capital funds seem likely to remain high, so that any downward pressure on rates from reduced demand should not be great.
It seems likely, moreover, that with an increase in the rate of saving in mortgage lending institutions, interest rates on residential mortgages may move somewhat lower through the spring of next year, although the increased ease in residential mortgage lending may occur primarily in other terms than interest rate, e.g., easier downpayment and amortization terms.

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