This index is the 12 month average of the monthly average yields of 3 month certificates of deposit. In plain English, this index is calculated by averaging the previous 12 rates of the 3 month CD rate. The 3 month CD rate used is the rate publish monthly by the Federal Reserve. Because this particular index is an annual average, it is more steady than straight CD rates. In more detail, the Federal Reserve averages dealer bid rates for certificates of deposit (CDs) that are actively traded in the secondary market and are issued by top-tier banks. Bids are generally for CDs issued in denominations of $1,000,000 or greater.
Certificates of Deposit Index – CODI (Discontinued)
Source: Derivation of Rates Reported by Federal Reserve Board
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