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BOARD OF S O V K R N O U 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 * H. 13 No, 177 January 6, 1965 CAPITAL MARKET DEVELOPMENTS ABROAD I, Nine Charts on Financial Markets Abroad II. Latest Figures Plotted in H.13 Chart Series, 1961* I I* t Nine Charts on Financial Markets Abroad Chart 1 - International Money Market Yields for U.S, Dollar Investors Chart 2 - Interest Arbitrage, United States/Canada Chart 3 - Interest Arbitrage, New York/London Chart h - Interest Arbitrage for German Commercial Banks Chart 5 - Short-term Interest Rates Chart 6 - Long-term Bond Yields Chart 7 - Industrial Stock Indices Chart 8 - Spot Exchange Rates - Major Currencies Against U,S» Dollar Chart 9 - 3-month Forward Exchange Rates OFFICIAL USE ONLY (Decontrolled after six months) INTERNATIONAL 3-MONTH MONEY MARKET YIELDS EURO-DOLLAR DEPOSIT VS. FOR U.S. CERTIFICATE DOLLAR OF INVESTORS DEPOSIT i U R O - D O l L A R DEPOSIT DIFFERENTIAL: EURO-DOLLAR N E W YORK OFFER Friday f i g u r e , ' RATES ON SELECTED 3-MONTH OVER INVESTMENTS " INTEREST ARBITRAGE, Friday ( i g u r 3 -M O N T H UNITED TREASURY B 1 lA STATES / C A N A D A f RATES h - ll - | \ [.UNITED STATES 11| RATE 1 I |1 1 PI FPERENTIAL 1 1 1 1 11 11 1 II 1 1 AND 11 FOR W A R D C A N A D I A N 11 \ l\ 11 11 11 DO U A R SPREAD IN FAVOR OF CANADA / V ' RATE DIFFERENTIAL FORWARD RATE WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN FAVOR OF CANADA w&d I IN FAVOR OF UNITED STATES II I I I I I I I J S D M Thursday figure* 1962, Friday I hereafter. J I S 11 D 11 11 J I 1 l IJ I LI I LI 11 I l LI T S D M J $ D INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3 - M O N T H T R E A S U R Y BILL RATES U.K. AUTHORITY DEPOSITS LOCAL 1 A RATE DIFFE RENT I A L / ( N D J 1 - M O N T H IFORW ARD STER L I N G 1 SFH A D 1N FAVO R OF l <) N D 0 N - - i r LwX h T K f o r * ARD Ri X,J N ~ IL_. % I 1 J / I 1 I RAT - I I | 11 "DIFFERENTIAL 1 I WITH | | 1 1 FORWARD I | I | 11 I EXCHANGE K | COVER I i i I 1 1i (NET l i INCENTIVE) 11 INTEREST ARBITRAGE 3 - M O N T H FOR TREASURY EURO-DOLLAR GERMAN BILLS, DEPOSIT COMMERCIAL INTERBANK RATES™] LENDING BANKS RATE -> AND —R~ G E R M A N TREASURY BILLS RATE DIFFERENTIAL AND FORWARD DEUTSCHE MARK I N T E R B A N K L O A N RATE |/X PREMIUM TREASURY B I U S RATE L L } 1 . : 1- - - 1— DIFFERENTIAL WITH FORWARD 1 I EXCHANGE I COVER 1. (NET I INCENTIVE) 1 2 TREASURY B I L L S ' . _ j M LJ J I LJ S IN FAVOR O f L O N D O N E U R O D O L L A R S i—) L.:i D I , ij LJ M i i i i i I S I I M I 1 J I 1 r I i_ S D chor>5 SHORT-TERM INTEREST R A T E S * K - H - EURO-DOLLAR • LONDON - v w y j i i i i i i ii i i i i i i i i i i i i ' JAPAN ' • \ h AA-A - J A + II ^t~l VVV; 1 1 1 1 1 1 II II 1 v» i u V J I ! 1 1 1 1 i Z P i II II i i II i i (Average r 1 1 II 1 1 1 1 II t ? - . r SWITZERLAND xcepf Japon j and Switzerland (3 month deposit rote). "j", 3 month role for U 5 dollar de poiifi in London^ * A/^ 1 i and discount i l I l l l I I K ] ; > " X Cher1 i L O N G - T E R M B O N D YIELDS / \/; J — V 1145 other i l o c k i traded on the Tokyi Chert 8 S P O T E X C H A N G E RATES - M A J O R C U R R E N C I E S A G A I N S T U . S . D O L L A R - . - *'"'1 AboV par 2.0 Billow par I Abovi par ; "with1 4 3-MONTH 'FORWARD AGAINST U.S. EXCHANGE RATES ' DOLLARS GERMAN MARK SWISS FRANC : 0 / V W POUND STERLING AGAINST POUND STERLING - LONDON PREMIUM + GERMAN MARK SWISS FRANC U.S. DOLLAR DISCOUNT- ill AGAINST POUND STERLING . LONDON DUTCH GUILDER FRENCH FRANC I h.13 - 1 177 II, Per cent per annum Chart 1 (Thurs, except as noted) Dec.-, 23 ) Treasury bills* Euro-$ deposit -LSB U.S. certif. of deposit lii U.S. Lower panels Thurs.r Dec, 2k ) Treasury bills: U.K. Finance Co. paper: U.S. J X J k f iiU2 Canada Hire-purchase paper, U.K. Germany 2,61 _L26' _L6g Euro-$ deposit (London) M 5 Japan: composite rate (Date: Sept, 2 5 ) _L.2§6 Chart 6 Bonds: Dec» 2U U.S. govt. (Wed. , Dec, 23 ) Canada ) U.K. war loan (Thurs., Dec, 2h U.S. Spread favor Canada -0.08 Forward Canadian dollar -0,07 Net incentive (Canada +) -JU5 Chart 3 (x-HIT'S't M l Swiss 3-month deposits (Date: Nov, 15 ) JuZS Chart" 2 Treasury bills: U.K. Canada U.S. Canada (Thurs.„ Per cent< per annum Chart 5 Upper panel (Wednesday, January 6, 1965 Latest Figures Plotted In H.13 Chart Series, 196U M 9 ) 6.46 German Fed. Railway . (Thurs,, Dec, 2h ) # Swiss Confederation (Fri-. Dec, 11 ) Juab Canadian govt. (Wed., Dec, 21 ,) Dec < 2k ) Treasury bills: Netherlands Government Perpetual (Fri., ' Dec, 18 U.K. U.S. Spread favor U.K. U.99 + Z S L * Forward pound Net incentive (U.K. +) ) Not available -cuia For description and sources of data see special annex to H. 13 Number 164, September 23, 1964. .,13 No, 177 - 2 - January 6, Latest Figures Plotted In H. 13 Chart Series,, II, Per cent per annum Chart 1 Upper panel (Wednesday, Dec, 30 Chart 5 Treasury bills: Jju62 U.S. certif. of deposit lwl6 3,80 6.U1 Lower panels Dec, 31 ) Treasury bills: U.S. Canada Finance Co. p^per: u i U.S. U02 Canada U,50 Hire-purchase paper, U.K. Canada 3Jk 3.68 Euro-$ deposit (London) U.62 Japan: composite rate (Date: Sept, 25 ) 7.986 Chart 6 Bonds: Dec. 11 ) Treasury bills: Canada ^7), U. S. 3^M Spread favor Canada -0.06 Forward Canadian dollar -ChlL Net incentive (Canada +) -0,20 Chart 3 (Thurs.j 2.63 Swiss 3-month deposits (Date: Nov, 15 ) U.70 Chart 2 Dec. TL ) Treasury bills: Germany 3,82 U.K. (Thur3, Per cent per annum (Thurs.. except as noted ) Euro-$ deposit (Thur.. , 1965 U.K. U.S. dJO. ' U. S. govt. (Wed., Dec. 30 ki£l U.K. war loan (Thurs. Dec. 11 Ldil German Fed. Railway (Wed,, Dec. 30 Swiss Confederation (Fri. Dec. 11 li.Oii Canadian govt. (Wed. Dec, 10 <.Q6 Netherlands Government Perpetual (Thurs,, ' Dec, 2k 5.QQ i.Ro Spread favor U. K. Forward pound Net incentive (U.K. +) 'Osll For description and sources of data see special annex to H. 13 Number 164, September z3, 1964. \v
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