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• O A n o OF a O V K R N O R f l H . 13 No. 313 August 23, 1967. Iqapital marketjevelopments abroad I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H. 13 Chart Series, 1967 Ten Charts on Financial Markets Abroad Chart 1 Chart • 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds London: Yields for U.S. Dollar Investors on 3-month Funds Interest Arbitrage: Frankfurt/London, "Zurich/London Interest Arbitrage: New York/Canada Interest Arbitrage: New York/London Short-term Interest Rates Long-term Bond Yields Spot Exchange Rates--Major Currencies Against U.S. Dollar 3-month Forward Exchange Rates Industrial Stock Indices Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW Y O R K , L O N D O N , M O N T R E A L : YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DOLLAR DEPOSIT RATES: NEW Y O R K - L O N D O N 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 EURO-DOLLAR OVER U . S . C E R T I F I C A T E OF D E P O S I T F I N A N C E C O . PAPER RATES ( c o v e r e d ) : Q U O T E D I N NEW YORK U . K . HIRE PURCHASE 1967 "j LONDON: Y I E L D S FOR U . S . DOLLAR INVESTORS O N 3-MONTH FUNDS E U R O - D O L L A R D E P O S I T RATES ! 30 180 90 DAY DAY DAY CALL HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE PURCHASE EURO-DOLLAR DEPOSIT DIFFERENTIAL FAVOR H I R E P U R C H A S E EURO-DOLLAR v DEPOSIT LOCAL AUTHORITY DEPOSIT DIFFERENTIAL V ~ FAVOR L O C A L A U T H O R I T Y ^ 1965 ( 1966 ^^FAVOR 1967 EURO-DOLLAR 1 H INTEREST ARBITRAGE: FRANKFURT/LONDON, FRANKFURT INTERBANK LOAN RATE V S . L O N D O N ZURICH/LONDON E U R O D O L L A R RATE ( C O V E R E D ) I I N TERMS O F D M INTERBANK LOAN RATE I EURODOLLAR FAVOR F R A N K F U R T FAVOR E U R O - D O L L A R ZURICH DEPOSIT RATE VS. LONDON i E U R O - D O L L-AR EURO-DOLLAR ! I i ! / V v i A RATE (COVERED) 1 1 1 1 ! i i IN TERMS i . OF SWISS i FRANCS i y A J V SWISS D E IP O S I T RATE ! DIFFERENTIAL L PRICE " OF T GOLD FAVOR ZURICH U IN FAVOR E U R O D O L L A R LONDON 1 1965 us doii.r ; 1966 1 r i 1967 ; ! ! 1968 !.in( o»nt, : 35.3 INTEREST ARBITRAGE, 3-MONTH TREASURY UNITED STATES/CANADA B I L I RATES C A N . F I N : CO. P A P E R CANADA ! UNITED STATES BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN j DOLLAR S P R E A D IN F A V O R OF C A N A D A FORWARD RATE : 3-MONTH COVERED RATE D I F F E R E N T I A L S I f- | ; I PRIME FINANCE PAPER A .. A ! \ A / S v ! i I /V. 1964 I ; i ; FAVOR U.S. FAVOR CANADA i ! i/\ V : I M / V \ ; TREASURY BILLS A I i i zv * /W 1 i FAVOR CANADA ! . M \ A. f - 1 (NET I N C E N T I V E S ) ! I I 1965 V i ! J ! I 7 r ! i ^ l I i i I 1966 I i I I ! I I 1 1 1 1 I I 1967 IIAVOR U.S. lN! ; ! ! INTEREST A R B I T R A G E , 3-MONTH TREASURY NEW BILL YORK/LONDON RATES U.K. LOCAL AUTHORITY LONDON DEPOSITS ! /V NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING S P R E A D IN F A V O R OF L O N D O N DISCOUNT FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) ' I N F A V O R OF L O N D O N I N F A V O R OF N E W Y O R K 1965 1964 ! | 1966 1967 S H O R T - T E R M INTEREST RATES * E U R O - D O L L A R - LONDON " ,4 U.K. U.S. SWITZERLAND GERMANY CANADA 1963 1964 1965 1967 L O N G - T E R M B O N D YIELDS NETHERLANDS CANADA SWITZERLAND GERMANY EURO-DOLLAR BONDS 1963 * * * 1964 1965 Average of y ieldi lor four foreign government dollar bonds quoted m London New tenet for Germany starts 7 9 65 New series for Switzerland starts 3 3 67 1966 1967 SPOT EXCHANGE RATES - M A J O R CURRENCIES AGAINST ! U.S. DOLLAR 1.6 SWISS FRANC GERMAN MARK U.K. STERLING FRENCH F R A N C — BELGIAN FRANC, DUTCH GUILDER CANADIAN D9LLAR ITALIAN LIRA JAPANESE YEN s 1965 • i 1111 t 0 M 1967 I& 3 - M O N T H F O R W A R D E X C H A N G E RATES A G A I N S T U.S. D O L L A R S — N E W YORK Friday figures PREMIUM* SWISS FRANC j GERMAN MARK POUND STERLING DISCOUNT PREMIUM* FRENCH FRANCj DUTCH GUILDER CANADIAN DOLLAR A G A I N S T P O U N D STERLING — L O N D O N PREMIUM* S W I S S FRANC A a A J V ' /X GERM AN MARK ^ w A , U . S . DOLLAR - ' , ^ J j V i j DISCOUNTi 1965 1966 : . i I ; 1967 I i i - i I N D U S T R I A L STOCK I N D I C E S , 958 ,. n 360 320 280 SWITZERLAND 240 200 GERMANY 160 120 H 360 320 280 JAPAN 240 200 CANADA 160 120 1964 * * Jo pen 1965 d 225 : n d v s ? r i a I and c'^er Hccks 'na?d on the Tokyo exchong* 1966 1967 H. 13 No. 313 Xi. Latest Figures Plotted in H.13 Chart Series, 1967 (all figures per cent per annum) Chart 1 (Wednesday, Upper Panel August 16 Euro-$ deposit 5.06 U.S. certif. of deposit 4.£ Lower Panel (Friday, ) Chart 5 (Friday, Aug. 18 Treasury bills: 4. 75 U.S. Canada Hire-purchase paper, U.K. 7 T W Spread favor U.K. +0. 99 Forward pound -0. 69 Net incentive (U.K. +) +0.30 Chart 6 (Friday, Aug. 18 Treasury bills: Euro-$ deposits: 5. 12 90-day 180-day Aug. 4 Hire-purchase paper . 5.56 5.75 5.69 5.59 5.56 11 Aug. 4 Local-authority deposit 11 Upper Panel Chart 3 August 15 (Period: Interbank loan (mid-point) 3.56 Euro-$ deposit (average) 5.16 Lower Panel 5. 16 4. 17 U.K. U.S. 5.12 Chart 2 (Friday, Aug. 18 ) 4. 25 4.94 ) August 18 Finance co. paper Call 30-day August 23, 1967. (Date : July 15 4.00 Price of gold §- 4 (Friday, Aug. 11 ) 35.182 35.184 Aug. 15 Interbank loan rate (German) 3.56 Euro-$ deposit (London) 5. 12 Zurich 3-month deposit (Date: July 15 Japan composite rate (Date: May 26 U.S. Gov't. (Wed. , Treasury bills: ) 4.23 4.17 Canada U.S. Spread favor Canada +0.06 Forward Canadian $ -0.97 Net incentive (Canada +) -0.91 Canadian finance paper 5.50 ) 4.00 ) 7.30 German Fed. (Fri., ) 4.94 Aug. 17 ) 6.81 Aug. 16 U.K. War Loan (Thurs., Aug. 18 Swiss Confed. (Fri., Aug. 4 Canadian Gov't. (Wed., Chart 4 (Friday, Aug. 18 4. 17 5. 16 4.23 U.S. U.K. Canada Chart 7 ' Zurich 3-month deposit Au ) ) ) 6.79 ) 4.65 Aug. 9. ) 5. 97 5.97 Netherlands Gov't, perpetual 3% (Friday, August 2 ) 5.65 Euro-$ bonds (Fri., 6.33 August 11 ) For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966.
@FedFRASER