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\ DIVISION OF INTERNATIONAL FINANCE H. 13 No. 332 BOA HO OF « O V E * N O * S January 10, 1968. CAPFTAL 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 Chart 1 - New York, London, Montreal: Chart •2 Chart 3 - Chart Chart Chart Chart Chart 4 5 6 7 8 - Chart 9 Chart 10 - Europe and British Commonwealth Section. Yields for U.S. Dollar Investors on 3-month Funds London: Yields for U.S. Dollar Investor* on 3-month Funds Interest Arbitrage: Frankfurt/London, Zurich/London Interest Arbitrage: New Yo%k/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Spot Exchange Rates--Major Currencies Against U.S. Dollar 3-month Forward Exchange Rates Industrial Stock Indices NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS NEW Y O R K , YIELDS FOR L O N D O N , U.S. MONTREAL: DOLLAR INVESTORS O N 3 - M O N T H FUNDS DOLLAR DEPOSIT RATES: NEW Y O R K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 Wednesday figures Per cent per EURO DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT 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 N E W Y O R K Friday figures CANADIAN FINANCE ~JT^—COMPANY U.S. FWANCE COMPANY Mar. lea. Sept. Dec. Mar. Sim. lee. Met. Sift. lee. Mar. 1|*. 3 LONDON: YIELDS EURO-DOLLAR Friday figures FOR U.S. DOLLAR INVESTORS O N 3-MONTH D E P O S I T RATES FUNDS . • S 30 DAY CALL HIRE P U R C H A S E AND LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE PURCHASE EURO-DOLLAR DEPOSIT DIFFERENTIAL FAVOR HIRE PURCHASE FAVOR EURODOLLAR EURO DOLLAR DEPOSltJ LOCAL AUTHORITY DEPOSIT . F A V O R , L O C A L AUTHORITY FAVOR E U R O D O L L A R 1965 1966 1967 1968 •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 N TERMS OF D M INTERBANK LOAN RATE r x EURO-DOLLAR FAVOR F R A N K F U R T DIFFERENTIAL FAVOR E U R O D O L L A R ZURICH D E P O S I T RATE VS. LONDON EURO DOLLAR RATE (COVERED) r i I N TERMS OF S W I S S F R A N C S EURO-DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL FAVOR EUR# DOLLAR PRICE OF J GOLD I I I I IN LONDON I I I I -I I I 1985 I I 1966 I i I i- ' I I hfi i j I i i I i i 1967 35.3 i i , i i 1966 i i i i INTEREST ARBITRAGE, Fridoy figures 3^MONTH TREASURY UNITED ^ STATES/CANADA " BILL RATES Per cent per annum CAN. FIN. CO. PAPER CANADA UNITED STATES ! BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN DOLLAR PREMIUM SPREAD IN FAVOR OF CANADA FORWARD RATE : 3-MONTH i i COVERED r RATE D I F F E R E N T I A L S (NET I N C E N T I V E S ) 2 FAVOR CANADA PRIME FINANCE PAPER | FAVOR U . S . FAVOR CANADA TREASURY BILLS 1964 1965 1966 1967 $• n INTEREST ARBITRAGE, N E W YORK/LONDON - 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON V RATE DIFFERENTIAL AND 3-MONTH NEW YORK FORWARD STERLING S P R E A D I N F A V O R OF L O N D O N PREMIUM FORWARD RATE RATE D I F F E R E N T I A L i | WITH FORWARD EXCHANGE | COVER (NET I N F A V O R OF L O N D O N INCENTIVE) /l\ I I N F A V O R OF N E W Y O R K 1965 1966 1967 19W •2. SHORT-TERM INTEREST RATES * EURO-DOLLAR - LO NOON t '! • - r i i ! i T^Tlk. u.s, i /VV A/ ! II 1 i M ! ; 1 M 1 ! 1 1 1 . ! ! ! II II 1! M M I i ' 1 I ! 1 M p~ f w V -^SWITZERLAND , « 1 1 1 II Mill 1 1 9 I 1J M I I M 1963 I. I i 1 1 I I M -I 1 I I I j l M 1964 i M I I 1 l I i I 1915 * 3 month treosury bill roles for oil countries except Jopon (Average rate on bank loans and discounts) Switzerland (3-month deposit rote) and Germany (interbank Loan Rote) M 19## M II I I I I I' I I I I 19#7 2 Weekly figures SWITZERLAND for Swilzerlond A SPOT EXCHANGE RATES - M A J O R CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC GERMAN M A R K — 4 U.K. STERLING BELGIAN FRANC DUTCH GUILDER ' — F R E N C H FRANC CANADIAN DOLLAR - v ITALIAN LIRA X/ yl ^ JAPANESE YEN 1965 * Devaluation ol the pound sterling from $2 60 to $2 *0 1966 : j 1967 1118 3-MONTH AGAINST Friday figurei' FORWARD E X C H A N G E RATES U.S. D O L L A R S - N E W r YORK jP»r PREMIUMS- SWISS FRANC GERMAN MARK POUND STERLING DISCOUNT 4 \ DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR BISCOUNT- AGAINST POUND STERLING — L O N D O N SWISS FRANC ,v GERMAN MARK U.S. DOLLAR DISCOUNT 1965 1966 1117 INDUSTRIAL STOCK INDICES 280 SWITZERLAND 240 U.K. 200 U.S. GERMANY 160 120 360 320 280 JAPAN 240 200 CANADA 160 120 1964 * * 1965 Sw in Bonk Corporation industrial Hock mde* Japan: index of 225 industrial and other Hocks traded on the Tokyo exchange 1966 1967 January 10, 1968 H. 13 No. 332 (all figures per cent per annum) Upper Panel Chart 1 (Wednesday, : Jan. 3 Euro-$ deposit 6.44 U.S. certif. of deposit 5.62 Lower Panel ) Treasury bills: Jan. 5 (Friday, ) 5. 50, 5.99 5.69 Finance co. paper: U.S. Canada Hire-purchase paper, U.K. - Chart 2 (Friday, Jan. 5 ) r Euro-$ deposits: Call 30-day 5.00 6.00 90-day 180-day 6.18 6.38 Hire-purchase paper 5.20 (Dec. 29, 1967) 5.07 Local-authority deposit (Dec. 29, 1967) / Chart 3 ) Upper Panel (Period: Jan. 1- 7 Interbank loan (mid-point) 3.25 Euro-$ deposit (average) 3.41 Lower Panel (Date: i, 1967) Dec. 1 = 4.00* Zurich 3-month deposit 35.198 Price of gold (Friday, Dec. 29, 1963 Chart 4 (Friday, Jan. 5 Treasury bills: Canada U.S. Spread favor Canada ) 5.79 4.95 + .84 Forward Canadian $ .32 Net incentive (Canada +) .52 Canadian finance paper 6.38 Chart 5 (Friday, Jan. 5 ) 7.,26 4.,93 U.K. U.S. Spread favor U.K. +2.,33 Forward pound -2.,58 Net incentive (U.K. +) - Chart 6 (Friday. Jan. 5 ' Treasury bills: . 25 - ' ) 4. 93 7. 26 5. 79 U.S. U.K. Canada 3. 25 Interbank loan rate (German) (Jan. 1-7) Euro-$ deposit (London) 6. 18 Zurich 3-month deposit (Date: Dec. 15, 1967) Japan composite rate (Date: Sept. 29, 196% 4.00 7.29 Chart 7 Jan. 3 ) 5.,21 U.K. War Loan (Thurs., Jan. 4 ) 7.,18 German Fed. (Fri., ) 6. 62 U.S. Gov't. (Wed. , Jan. 5 Swiss Confed. (Fri. , Dec. 29,1967) 4i, 76** Canadian Gov't. (Wed.. Dec. 27,1957) 6.,62 Netherlands Gov't, perpetual 31 (Friday. Dec. 29, 1967) 6.09 Euro-$ bonds (Fri.. Jan. 5 7.,48 ) special supplement to H.13, Number 239, March 16, 1966. * Nov. 23, 1967 4.00 **Dec. 1£, 1967 Nov. 30, 1967 4.00 Dec. 22, 1967 Dec. 7, 1967 4.00 4.68 4.81
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