The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
H . 13 No. 344 x 9 - April 3, 1968. L MARKET DEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 Ten Charts on Financial Markets Abroad New York, London: Yields on U.S. Dollar Funds London: Yields for U.S. Dollar Investors on 3-Month Funds Chart 3 - Interest Arbitrage: Fraikfurt/London, Zurich/London „ " • ' Interest Arbitrage: New York/Canada Chart Interest Arbitrage: New York/London Chart. Short-Term Interest Rates Chart Long-Term Bond Yields Chart Spot Exchange Rates--Major Currencies Chart Against U.S. Dollar Chart 9 - 3-Month Forward Exchange Rates • Chart 10 - Industrial Stock Indices Chart Chart Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS il NEW Y O R K - L O N D O N : YIELDS O N U . S . DOLLAR F U N D S 3 - M O N T H D O L L A R DEPOSIT RATES EURO D O L L A R D E P O S I T U . S . C E R T I F I C A T E OF D E P O S I T E U R O - D O L L A R , OVER U . S . C E R T I F I C A T E OF D E P O S I T C A L L E U R O - D O L L A R D E P O S I T RATE VS. U.S. FEDERAL F U N D S RATE CALL EURO-DOLLAR DEPOSITS FEDERAL FUNDS r E U R O - D O L L A R OVER F E D E R A L F U N D S Mar. jun. Sept. Sept. Mar. Dec. 1965 1966 1967 Dec. Sept. Mar. 1166 lie. Chart 2 LONDON: YIELDS EURO-DOLLAR Friday figures FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES 30 DAY 9 0 DAY, 180 DAY CALL HIRE P U R C H A S E Friday figures AND LOCAL AUTHORITY DEPOSIT RATfeS (covered) HIRE PURCHASE EURO-DOLLAR DEPOSIT DIFFERENTIAL [ FAVOR HIRE PURCHASE FAVOR EURODOLLAR EURO-DOLLAR DEPOSIT] LOCAL AUTHORITY DEPOSIT -r DIFFERENTIAL 1 3 " F A V O R LOCAL AUTHORITY FAVOR EURODOLLAR 1965 1966 19(7 1988 1 H I INTEREST A R B I T R A G E : F R A N K F U R T / L O N D O N , FRANKFURT INTERBANK LOAN RATE V S . ZURICH/LONDON LONDON EURO D O L L A R RATE ( C O V E R E D ) IN TERMS OF DM EURODOLLAR INTERBANK DIFFERENTIAL I " w i : 1 ! ZURICH 1 ! i DEPOSIT x ... : -V- i 1 i i 1 1 I • LOAN RATE ! ! . | i i ! RATE V S . L O N D O N M 1 I i r m EURO-DOLLAR r f i A v i A i ! FAVOR FRANKFURT A j i ' F r r E » " o o o u " RATE ( C O V E R E D ) I N TERMS OF SWISS FRANCS EURO-DOLLAR SWISS DEPOSIT DIFFIERENTI AL i , RATE % 1 ! • ' ' . ; ! 1 1 ! , ! V / N A ^ 1 I 1 FAVOR ZURICH i ! ! 1 I I JL PRICE OF G O L D I N 1 1 1 1 1 1 ! LONDON 35.5 i 1 1 ; 1 ! 1 1 1 ! 1 ! 1 . M i l l - 1 FAVOIt E U R O D O L L A R 1 1 1 1 1 1 1 < 3 INTERS? ARBITRAGE, 3-MONTH TREASURY UNITED BILL STATES / C A N A D A RATES CAN. F I N . CO. P A P E R INITED I STATES CANADA BILL RATE DIFFERENTIAL AND FORWARD SPREAD CANADIAN DOLLAR PREMIUM I N F A V O R OF C A N A D A v : FORWARD RATE I DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) TREASURY BILLS PRIME FINANCE PAPER I FAVOR U.S. FAVOR CANADA FAVOR U . S . 1965 1966 1967 1981 INTEREST A R B I T R A G E , N E W 3-MONTH TREASURY BILL YORK/LONDON RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK RATE . FERENTIAL AND 3-MONTH FORWARD \"V STERLING S P R E A D I N F A V O R OF L O N D O N PREMIUM FORWARD RATE DISCOUNT r-\A I \/Y RATE D I F F E R E N T I A L I WITH FORWARD ! EXCHANGE | COVER (NET , N F A V O R OF L O N D O N INCENTIVE) tA I I N F A V O R OF N E W Y O R K 1965 1966 1967 1161 "1 S H O R T - T E R M INTEREST RATES* EURO D O L L A R - L O N D O N t SWITZERLAND 1964 1965 1966 >3-month treasury bill roles for all countries except Japan (Average rate on Switzerland (3-month deposit rate) and Germany 3-month rote for U.S. dollar deposits in London. (interbank Loan tote) 1967 K " r / V v % L O N G - T E R M B O N D YIELDS Weekly figures Per cent per 8 NETHERLANDS^ 7 CANADA 6 U.S. 5 SWITZERLAND j ] 4 3 9 8 GERMANY U.K. ^ 7 ^ EURO DOLLAR BONDS 6 5 8 7 U.S. EURO DOLLAR BONDS 6 U.S. CORP. Aaa BONDS 1 1966 Average of New series * New series * * New series yields for four foreign : government dollar bonds quoted in London for Germany starts 7 9-65 for Switzerland starts 3-3-67 for Netherlands starts 1-7-66 1967 <\ amt SPOT E X C H A N G E RATES - M A J O R CURRENCIES A G A I N S T U . S . DOLLAR SWISS FRANC r ,rt r vi GERMAN M A R K — \ - U.K. STERLING | B E L G I A N FRANC DUTCH GUILDER F R E N C H FRANC CANADIAN DOLLAR I T A L I A N LIRA A /V X / JAPANESE YEN M * J 1965 S D M Devaluation of ihe pound sterling from $2 80 to $2 40 J 1966 $ D M $ 1117 D M $ 1961 0 v> 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS — N E W YORK GERMAN MARK SWISS FRANC POUND STERLING OISCOUWT- I I I I DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNT - AGAINST POUND STERLING — L O N D O N | •l*EIlive* * j ,^1 j • a u - 1 I J A 6 E * M A N M ARK 1 SWISS F l IANC % X x A p\ 1 1 S 1 1 i I M ! I J 1967 1965 / f 1 Xi j r —~ \v 1 1 r. i' | ' U.S. DOLLAR 1 1 S l«RTl»rc 1 I D M 1 1 / 1 1 l 1 1 1986 S B 1 1 1 1 1 J II i $ 1166 0| INDUSTRIAL STOCK INDICES SWITZERLAND — 200 U.S. GERMANY 180; U.K. 120 360 320 280 JAPAN 240 CANADA 200 U.S. 160 12# 1965 • • • 1966 Swiss Bank Corporation industrial stock index Japan: index of 225 industrial and other stocks traded on the Tokyo exchange 1167 1666 , '* •• H.13 No. 344 II. April 3> 1968. Latest Figures Plotted in H. 13 Chart Series, 1968 (all figures per cent per annum) Chart 1 (Wednesday, March 27 Upper Panels Euro-$ deposit 6.38 U.S. cartif. of deposit Lower Panels Chart 4 (Friday, March 29 ) Treasury bills: Canada 5.81 (Wednesday, March 27 U.S. ) 6. 75 5.14 Spread favor Canada +!• 61 Call Euro-$ deposit 5.qa Forward Canadian dollar "!• ^9 Federal Funds 5. -35 Net incentive (Canada +) -0. na Chart 2 (Friday, March 2Q V Upper Panel - Euro-$ deposits: Call 30-day 5.75 6.06 SO-day 180-day Treasury bills: U.K. Middle Panel 6,56 Local-authority deposit 3.40 (March 22) Euro-p $ deposit 6. 56 (March 22) Chart 3 I. Upper panel (Period: March 25-29 ) Interbank Loan (mid-point) 3.50 (average) 5. 14 U.S. +1. 81 U.K. local authority deposit 8.12 (March 22) Chart 6 March 29 • (Friday, Treasury bills: U.S. 5.14 U.K. 6.95 Canada 6.75 Interbank loan rate (German) (March 35-29 ) 3.50 Euro-$ deposit (London) 6.38 3.50 Zurich 3-month deposit Lower Panel (date Feb. 15 ) Zurich 3-month deposit 2. 75 Euro-$ rate (covered) (March 31) II. Pri.ce of gold (Friday, March 15 3. 72 (Date: Feb. 15 ) 2.75 (Date: Dec. 29, 1967 ) 7.35 Japan Composite rate ) 35. 198 ) 6. 95 Spread favor U.K. 3.90 Hire-purchase paper (March 22) Euro-$ deposit (March 22) Lower Panel Euro-$ deposits Canadian Finance paper 7.00 (March 22) Chart 5 (Friday, March 29 6.38 6.50 1 ) • Yi April 3,. 1968. H. 13 No. 344 Chart 9* Chart 7 U. S. Gov't. (Wefj. .March 27 ) (Friday. Mar. 29) ,5.37 U.K. War Loan (Thurs..Mar. 28) 7.21 Against U.S. dollars: German Fed. (Fri., March 29 .) 6.68 Swiss francs +2.66 Dutch Glds. +1. 81 Swiss Confed. (Fri., Mar. 22 ) 4.52 German marks +2.75 Fr. Francs +1.23 Canadian Gov't. (Wed., Mar. 27) 7. 01 £ Sterling Can. $ -1.47 *7.33 Against pound sterling: Netherlands Gov't. (Friday, Mac. 22 ) 6.46 Swiss francs +8.17 Euro-$ bonds (Frt.., Mar. 29 ) 7.64 U. S. dollars +6.07 U. S. Euro-bonds ( Feb. 23 ) 7.21 U.S. Corporate Aaa (Feb. 23 ) 6.10 Chart 8 ( F r i d a y T ^ ^ 29 Swiss frahcs +1.11 Dutch Glds. -HO. 17 . German marks +0.36 Can. $ -0-16 +9.84 Chart 10 U. S. ( March 29 Japan (March 22 w ) Ger. marks ) ) 197.5 237.7* U.K. (Fri. .March 29 ) 248.0 Switzerland (Fri,. March 29 ) 307.4 U.K. £ Ster. +0.06 It. Lire +0.09 Germany ( March 15 ) 240.0 Belgian francs+0.65 Jap. Yens -0.54 Canada f March 21 ) 181.6 - French francs +0.33 For descriptions and sources of data, see Special Supplement No. 343^ dated March 27, 1968. *Feb. 16 Feb. 23 Mar. 1 Mar. 8 Mar. 15 234.3 235. 1 235.7 232.0 232.7
@FedFRASER