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1 OF T H E P COBRA L R E S E R V E • VST EM ^ ^ ^ No. 337 ; February 14, 1968. j — I. II. CAPITAL MARKET DEVELOPMENTS ABROAD Ten Charts oh Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 OdjUhul fX\(khAjf I. Ten .Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds 2 - London: Yields for U.S. Dollar Investors (on 3-month Funds 3 - Interest Arbitrage: Frankfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-term Interest Rates 7 - Long-term Bond Yields /8 - Spot Exchange R_ates--Major Currencies Against U.S. Dollar 9 - 3-month Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION' DECONTROLLED AFTER SIX MONTHS NEW Y O R K , L O N D O N , MONTREAL: YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DOLLAR DEPOSIT RATES: NEW b YORK-LONDON EURO-DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT FINANCE Friday figures CO. PAPER RATES (covers ) QUOTED IN NEW YORK U.K. HIRE PURCHASE CANADIAN FINANCE ~in COMPANY i U.S. FINANCE COMPANY Mar. Jun. 1965 Sept. Dec. Mar. . Jun. 1966 Sept. Dec. Mar. Jun. 1967 Sept. Dec. Mar. Jun. 1968 Sept. Dec. LONDON: YIELDS EURO-DOLLAR Friday figures FOR DEPOSIT U.S. DOLLAR INVESTORS 30 HIRE P U R C H A S E Friday figures AND ON 3-MONTH FUNDS RATES LOCAL AUTHORITY DAY DEPOSIT RATES HIRE EURO-DOLLAR (covered) PURCHASE DEPOSIT DIFFERENTIAL FAVOR HIRE P U R C H A S E FAVOR E U R O D O L L A R EURO D O L L A R LOCAL DIFFERENTIAL AUTHORITY DEPOSIT DEPOSIT FAVOR LOCAL A U T H O R I T Y FAVOR E U R O - D O L L A R 1 I INTEREST ARBITRAGE: FRANKFURT/LONDON, FRANKFURT INTERBANK LOAN RATE V S . L O N D O N ZURICH/LONDON EURO DOLLAR RATE ( C O V E R E D ) ^ I N TERMS OF D M INTERBANK LOAN RATE ! E U RR O - D O L L A R FAVOR F R A N K F U R T DIFFERENTIAL FAVOR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE EURO-DOLLAR (COVERED) I N TERMS OF S W I S S F R A N C S EURO-DOLLAR SWISS DEPOSIT RATE FAVOR DIFFERENTIAL ZURICH FAVOR E U R O D O L L A R H PRICE OF GOLD IN LONDON T T 35.3 35.0 1965 1966 1967 GE, UNITED STATES / C A N A D A 3-MONTH TREASURY BILL RATES CAN. FIN. CO PAPER BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR I SPREAD IN FAVOR OF CANADA / V/- FORWARD RATE 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES] FAVOR C A N A D A TREASURY BILLS PRIME FINANCE PAPER FAVOR U S FAVOR C A N A D A FAVOR U S M J 1968 S D INTEREST ARBITRAGE, 3-MONTH TREASURY NEW BILL YORK/LONDON RATES U.K. LOCAL AUTHORITY DEPOSITS : LONDON V RATE DIFFERENTIAL AND 3-MONTH NEW YORK FORWARD STERLING S P R E A D IN F A V O R OF L O N D O N PREMIUM RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET IN FAVOR OF L O N D O N INCENTIVE) »A IN FAVOR OF N E W Y O R K 2 33 1965 1966 1967 6 1968 SHORT-TERM INTEREST RATES # EURO DOLLAR - LONDON t U.S. SWITZERLAND JAPAN - GERMANY jj r CANADA U.S. 1963 1964 1965 * 3-month treasury bill rotes for oil countries except Japan (Average rate on bank loans and discounts) Switzerland (3-month deposit rate) and Germany (interbank Loon Rate) *~t" 3-month rate for U.S. dollar deposits London 1966 1967 LONG-TERM BOND YIELDS NETHERLANDS CANADA U.S. SWITZERLAND GERMANY EURO-DOLLAR BONDS 1963 1965 1966 1967 SPOT EXCHANGE RATES - MAJOR CURRENCIES A G A I N S T U.S. DOLLAR S W I S S FRANC GERMAN M A R K - »• j i r o U.K. S T E R L I N G : •y^v.JH ] \r'~ S . ^ T \ \ ^ \ \ r vr . . . ! i - i x / i j 1 ; /~\_v V W DUTCH GUILDER j 1 1 ! i ! • FRENCH FRANC I i' I T A L I A N LIRA JAPANESE YEN 0 M J 1966 Devaluation of the pound sterling from $2 80 to $2 40 i : / ! / . : B E L G I A N FRANC S 1967 i • • "1 ! ' ' 3 - M O N T H FORWARD EXCHANGE RATES AGAINST Friday figures U.S. DOLLARS — N E W YORK - • Per cent per PREMIUM* GER M AN M A R K SWISS FRANC POUND S T E R L I N G V DISCOUNT- PREMIUM* D U T C H GUILDER H FRENCH FRANC C A N A D I A N DOLLAR AGAINST Friday figures POUND STERLING — L O N D O N Per PREMIUM* GERMAN M A R K j S W I S S FRANC U . S . DOLLAR DISCOUNT- 1965 1967 1966 1968 INDUSTRIAL STOCK INDICES 1958 100 Ratio scale 360 320 SWITZERLAND U.K. U.S. GERMANY 160 120 360 320 280 JAPAN 240 CANADA 160 120 1964 1965 Japan; index of 2 2 5 industrial and other slocks traded on the Tokyo exchange 1966 1967 ' H. 13 No.337 (all figures per cent per annum) Upper Panel Chart 1 (Wednesday, 5.38 U.S. certif. of deposit 5.35 Lower Panel . (Friday,. Feb. 9 Finance co. paper: U.S. Canada Hire-purchase paper, U.K. Treasury bills: ) 5.25 4.85 5.46 90-day 180-day 5.50' 5.94 Hire-purchase paper 5.38 5.38 Chart 3 (Period: Feb, 1-7 Interbank loan (mid-point) 3.51 Euro-$ deposit (average) 3.28 (Date: Jan. 15 Zurich 3-month deposit Price of gold. (Friday, Feb. 2 3.00* Spread favor U.K. +2.31 -2.60 Net incentive (U.K. +) - .29 ) 35.196 U.S. U.K. Canada ) 5.01 7.32 6.40 Interbank loan rate (German) (Feb. 1-7) Euro-$ deposit (London) ) Zurich 3-month deposit (Date: Jan. 15 ) Japan composite rate (Date: Nov. 24, 1967) ; (Date: Dec. 29, 1967) Chart 7 ) U.K. War Loan (Thurs., 3.51 5.50 3.00* 7.34 7.35 ) 5.09 ) 6.62 Jan. 25 ) 4.70 Canadian Gov't. (Wed;, Feb. 7 U.S. Gov't. (Wed. , German Fed. (Fri., Feb. 7 Feb. 8 Feb. 2 Swiss Confed. (Fri., ) Chart 4 (Friday, Feb. 9 Treasury bills: 7.32 5-01 Forward pound Treasury bills: Local-authority deposit Lower Panel U.K. U.S. ' Euro-$ deposits: Upper Panel 9) Chart 6 (Friday, Feb. 9 Chart 2 (Friday, Feb. 9 ) 4.62 5.18 Chart 5 (Friday, Feb. ) Feb. 7 Euro-$ deposit Call 30-day 12' February 14, 1968 7.18 ) 6.85 Netherlands Gov't. perpetual 37o (Friday, Feb. 2 ) 6.12 ) 7. 50 Canada U.S. Spread favor Canada 6.40 5.01 +1.39 Euro-$ bonds (Fri., Forward Canadian $ -1.46 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966. Net incentive (Canada +) - .07 Canadian finance paper •6.50 * Dec. 23, 1967 Dec. 31, 1967 Jan. 7, 1968 Feb. 9 4.00 4.00 3.50
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