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D I V I S I O N OF I N T E R N A T I O N A L F I N A N C E . BOARD OF 9 0 V I R N 0 M FEDERAL RESERVE I Y I T I - January 15, 1969. CAPITAL MARKET DEVELOPMENTS ABROAD a p XI. I. en Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1969 Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York* London: Yields on U.S. Dollar 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 Rates--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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX M01TTHS t d rv\' NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLAR FUNDS 3 - M O N T H DOLLAR DEPOSIT RATES Wedneijoy ligurei p, EURO-DOLLAR DEPOSIT 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 CALL EURO DOLLAR DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE CALL EURO-DOLLAR DEPOSITS FEDERAL FUNDS T E U R O - D O L L A R OVER FEDERAL F U N D S Mar. Jea. Sept. 1965 Dec. Mar. Jan. Sept. 1966 Dec. Mar. Jan. Sept. 1967 Dec. Mar. Jun. Sept. 1968 Dec. LONDON: YIELDS FOR U . S . D O L L A R INVESTORS O N 3 - M O N T H FUNDS E U R O - D O L L A R D E P O S I T RATES Friday figurei Per ctnl per 3 0 DAY 180 DAY 9 0 DAY M J 1965 S D M J 1966 S D M J 1967 S 0 M J 1968 S 0 M L O N D O N : YIELDS HIRE PURCHASE Friday ligurei FOR AND U.S. DOLLAR LOCAL INVESTORS AUTHORITY O N DEPOSIT 3 - M O N T H RATES FUNDS (covered) HIRE PURCHASE FAVOR HIRE P U R C H A S E FAVOR E U R O D O L L A R EURO-DOLLAR LOCAL \r | f y V M 1 1 1 f AVOR LOC AL A U T H O R I T Y i i 1 1 J 1 S 1 I D DEPOSIT j ~ " V r * D I F F E R E N T 1A L 1 AUTHORITY | ' j 1 DEPOSIT M i M 1965 A , i l J ! ! S 1966 1 I D i I M ; i l l , J , i S 1967 i 1 I . l 1 O ; ,1 1] VI i FjfcOR EURO-DOLLAR j 1968 s o I INTEREST ARBITRAGE: FRANKFURT FRANKFURT/LONDON, INTERBANK LOAN RATE VS. Z U R I C H / L O N D O N L O N D O N EURO-DOLLAR RATE (COVERED) IN TERMS OF DM EURO-DOLLAR INTERBANK ! 1 DIFFERENTIAL 1 | 'j ; ZURICH ! j I L . ! | DEPOSIT j ! ! | RATE ! I i j VS. : ' ; LOAN 1 i,!' , L O N D O N M RATE ! , I F A V O R FRANKFUFEYX , FAVOR E U M - M L L M i EURO-DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS EURO-DOLLAR SWISS ! DIFFIE R E N T I A L / V V V 1 H 1 PRICE ! : DEPOSIT RATE ; ' | | ; X ~ I , ! i , , I V 1 o r 1 . 1 GOLD 1 I IN I 1 N I : , h , I i, 1 1 - At \j I 35.2 - 35.1 - 1 1 1 1 1 I I 1 I I 1 1965 Market closed March 15-April 1, 1968 1 I I I 1966 ! ! ! ! 1 i I 1 1 1 1 i ! 1 1 i l l M 45. 1 ii 35.3 35.0 i , T h " , ' - 4 y L O N D O N 33.5 35.4 I FAVOR Z U R I C H | 1 1 J 1968 i i 43. i 41. —39. 37. ! s i i 35. e \o I N T I R S T A R B I T R A G E , U N I T E D STATES / C A N A D A Fridoy figures 3 - M O N T H TREASURY B i l l Per ieni pet annum RATES I C A N . F I N . CO PAPER UNITED STATES /v CANADAV Bill 1 r r 1 1— RATE D I F F E R E N T I A L A N D , F O R W A R D C A N A D I A N DOLLAR 1 S P R E A D I N F A V O R OF C A N A D A FORWARD RATE i \ , , 1 J ;— r T T 3 . M O N T H C O V E R E D RATE DIFFERENTIALS (NET I N C E N T I V E S ) FAVOR CANADA ij T R E A S U R Y B I L L S | PRIME FINANCE PAPER | FAVOR U.S. FAVOR CANADA 1965 1966 1967 1968 2 1 I N T I R I S T A R B I T R A O I , NEW Y O R K / L O N D O N 3 . M O N T H TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS A l V v J j LONDON NEW YORK 1965 1966 1967 1968 % IN7IIIISV AtBlTRAOl, N i W Y O R K / L O N D O N 1 : 1 RATE D I F F E R E N T I A L . 1 AND 1 3-MONTH 1 r FORWARD ! 1 STERLING SPREAD IN FAVOR OF LONDON PREMIUM' DISCOUNT FORWARD RATE j V \ 2 I N FAVOR OF L O N D O N IN FAVOR OF NEW YORK RATE D I F F E R E N T I A L WITH 1965 FORWARD 1966 EXCHANGE COVER (NET 1967 INCENTIVE) 1968 SHORT-TERM INTEREST RATES* EURO DOLLAR - LONDON + UK U.S. SWITZERLAND 9 JAPAN CANADA I US GERMANY 1964 1965 1966 * 3 month treotvry bill relet I or oil countries eiicepl Japan (Aeeroge rote on bonk loons ond discounti) Switzerland (3-montk deposit role) and Germany (interbank lean Bote) 3-month role for US dollar deposits in London 1967 1968 V i ^ 1° ' L O N G - T E R M B O N D YIELDS -NETHERLANDS CANADA U.S. V SWITZERLAND GERMANY EURO-DOLLAR BONDS 8 U.S. EURO-DOLLAR BONDS U.S. CORP. Aaa BONDS 1964 1965 1966 1967 1968 Chart 8A . SPOT EXCHANGE RATES • MAJOR CURRENCIES AGAINST U.S. DOLLAR Per cent Above par SWISS FRANC - 4 GERMAN MARK with U.S. U.K. STERLING Above par I DUTCH GUILDER Par ; U.S. J FRENCH FRANC JAPANESE YEN Below par M J s 1966 J 1967 S D M J 1968 s D M J s D 1969 Devaluation of the pound sterling from $2.80 to $2 40. I % £ Chart 8B SPOT EXCHANGE RATES - MAJOR CWRENCfES AGAINST U.S. DOLLAR Above par 1.2 BELGIAN FRANC with ITALIAN LIRA V I CANADIAN DOLLAR Below par M J S D 1966 w J 1967 S 0 M J 1968 S D M S 1969 D \3 Chart 9A 3-MONTH FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS-NEW YORK Per cent per a n n i Friday figure? PREMIUM GERMAN MARK SWISS FRANC \j \ \ j J \ r POUND STERLING DISCOUNT- DUTCH GUILDER A X CANADIAN DOLLAR FRENCH FRANC DISCOUNT— M J S D 1966 M J 1967 S D S M 1968 D M J 1969 S D ' Chart 9B 3-MONTH FORWARD EXCHANGE RATE AGAINST POUND S T E R L I N G - L O N D O N Friday f i g u r e s Per cent per a n n u m GERMAN MARK U.S. DOLLAR V 7 X/ SWISS FRAiNC U i k f e FRENICH F R A N C y V y J DISCOlL I N T I M J S ' D M 1966 t J 1967 S D M J 1968 S D M J 1969 S D INDUSTRIAL STOCK INDICES 360 320 280 240 SWITZERLAND U.sA GERMANY 160 U.K. 120 360 320 280 JAPAN 240 CANADA 200 U.S. 160 120 1965 • ** 1966 Swiss Bonk Corporation industrial slock index Japan index of 225 industrial and other stocks traded on the Tokyo exchange 1967 1968 January 15, 196 H. 13 No. 385 II. a. Late.s, Figures Plotted in H. 13 Series (all figures in per cent per a m u m ) Chart 1 Chart 4 Dec. Upper Panels (Wednesday, (Friday, Jan. 10 ) 6.27 7 .81 Euro-$ deposit 6,.62 U.S. certif. of deposit +0 .19 Spread (favor Canada + ) Dec. 8 Lower Panels (Wednesday, 6.08 U.S. Forward Canadian dollar -0 .02 Call Euro-$ deposit 7.,68 Net incentive (Canada + ) +0,,17 Federal Funds 6,,43 Canadian Finance paper Chart 2A Jan. 10 Euro-$ deposits (Friday Upper Panel Lower Panel 6,.62 Chart 5A (Friday, Jan. 10 ) 75 Call U.K. Local Authority deposit 7. 69 Treasury bills: 6. 63 6.08 U.K. U.S. 30-day 8.00 90-day 7. 75 Spread (favor U.K. +) +0. 55 7. 62 Forward rate -3. 20 180-day Chart 5B Net incentive (U.K. + ) Chart 2B Hire-Purchase ( Jan. 3 ) 4.76 Local Authority ( Jan. 3 ) 2.74 Euro-$ deposit ( Jan. 3 ) Upper Panel (Friday, Treasury Bills 7.34 Chart 3 I. Upper Panel (Period: -2. 65 Chart 6 Jan. 10 ) 6.08 U.S. U.K. 6.63 Canada 6.27 Euro-$ deposit (London) Jan. 1-7 ) 7.75 Lower Panel Interbank Loan (mid-point) 3. 84 German Interbank loan rate ( Jan. 1-7 ) Euro-$ deposits (average) 2. 65 Zurich 3-month deposit ( Jan. 7) 4.00 Japan Composite Rate ( ) n. a. U.S. Treasury bills ( Jan. 10 ) 6.08 Lower Panel (date: Jan. 1-7 ) Zurich 3-mo. deposit 4.00 Euro-$ rate (covered) (Jan. 7 ) 4.76 II. Price of Gold (London) (average-week ended 42.28 Jan.10) 3.84 January 15, 1969. H. 13 No. 385 II. b Chart 7 Chart 9A Upper Panel (Friday, U.S. Gov't. (Wed. , _) Jan. 5.80 Jan. 10 ) Against U.S. dollars Upper Panel Netherlands Govt, (Fri., Dec.20) 6.71 (Fri. , Dec. 27) 6.59 Canadian Gov't. (Wed. , Jan. 8 ) n.a. Swiss Gov't. Composite (Fri. , Jan. 3) 4.41 +2.87 German marks +4.40 £ sterling -3.20 Lower Panel Middle Panel German Fed., (Fri., Jan. 3 ) 6.21 U.K. War Loan (Thus., Jan. 9 ) 8.21 Euro-$ bonds (Fri., 7.54 Jan. 10 ) Lower Panel ) 7.17 U.S. Corporate Aaa ( Dec. 31 ) 6.45 U.S. Euro-bonds ( Swiss francs Dec. 31 Chart 8A (Friday, Jan. 10 ) French franc -7.33 Dutch guilder +1.20 Canadian dollar -0.02 Chart 9B (Friday, Jan. 10 Against pound sterling Upper Panel German mark +7^5 U.S. dollar +2.77 Lower panel Upper Panel +1.25 German marks -0,.04 U.K. £ sterling -0,.63 Chart 10 (Index; 1958 = 100) ) 281.9 Jan. 3. 10 ) 260.8 Switzerland ( Jan. 10 ) 404.6 U.K. ( Lower Panel French francs -0,.29 Dutch guilders +0.,03 Chart 8B (Friday, Jan. 10 +5.15 Swiss franc Swiss francs +0.,53 Japanese yens -0.40 +0. 75 Italian lira +0. 16 Jan. 10 Germany ( Lower Panel U.S. ( ) Belgian francs Canadian dollars Jan. 10 Canada ( Dec. ( Jan. Japan ( Jan. ( Jan. 24 ) 223.9 ) 225.7 229.9 303.1 307.3 2 ) 3 10 ) ) For descriptions and sources of data, see Special Supplement No. 343-S Digitized fordated FRASER March 27, 1968. )
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