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DIVISION O F I N T E R N A T I O N A L F I N A N C E BOARD OF GOVERNOR# H. 13 No. 288 March 1, 1967 CAPITAL MARKET DEVELOPMENTS 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 Bond Yields 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) 1 NEW f YORK, LONDON, YIELDS FOR U . S . DOLLAR DEPOSIT MONTREAL: DOLLAR INVESTORS O N RATES: NEW 3-MONTH FUNDS YORK-LONDON EURO-DOLLAR DEPOSIT 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 FINANCE CO. PAPER RATES (covered) : QUO T ED IN NEW YORK U . K . HIRE P U R C H A S E CANADIAN FINANCE COMPANY U.S. FINANCE COMPANY LONDON: EURO YIELDS DOLLAR FOR DEPOSIT U.S. DOLLA* INVESTORS ON 3-MONTH FUNDS RATES 1 8 0 DAY 9 0 DAY! > CALL 3 0 DAY HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES e d ) EURO-DOLLAR DEPOSIT/' HIRE P U R C H A S E ^ ' DIFFERENTIAL FAVOR HIRE P U R C H A S E LOCAL AUTHORITY DEPOSIT UR0-D0LLAR DEPOSIT 1 1564 i 965 4 f I INTEREST ARBITRAGE: FRANKFURT FRANKFURT/LONDON, INTERBANK LOAN RATE VS. ZURICH/LONDON LONDON EURO-DOLLAR RATE (COVERED) IN INTERBANK LOAN RATE TERMS OF DM EURODOLLAR DIFFERENTIAL FAVOR F R A N K F l ' R i V , FAVOR EURODOLLAR ZURICH DEPOSIT RATE V S LONDON EURO-DOLLAR SATE (COVERED] iN TERMS OF SWISS FRANCS EURO-DOLLAR A - A V\ _/ S W I S S DEPOSIT RATE d e f e r e n t i a l FAVOR FAVOR V n PRiCE or GOLD IN ZURICH EURODOLLAR /-x LONDON 35.3 1965 1966 1967 INTERIST ARKITRAOK, UNITED ST A T 1 S / C A N A D A 3-MONTH T R E A S U R Y BILL R A T E S CAN. FIN. CO. jPAPER CANADA j UNITED S T A T E S BILL RATE DIFFERENTIAL AND FORWARD C A N A D I A N DOLLAR S P R E A D !N FAVOR OF C A N A D A V/ FORWARD RATE 3 M O N T H COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR C A R / V * I PRIME FINANCE PAPER FAVOR U S FAVOR CANADA TREASURY BILLS FAVOR U S i, 1 i ; M I INTEREST 3-MONTH ARB'TRAGE, TREASURY NEW BILL Y O R K / L O N D O N RATES U.K. LOCAL AUTHORITY DEPOSITS1 LONDON I NEW YORK IE DIFFERENTIAL AND 3 •M O N T H FORWARD STERLING S P R E A D IN F A V O R O F L O N D O N DISCOUNT FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET I 2 INCENTIVE) IN F A V O R OF L O N D O N IN F A V O R O F N E W Y O R K 1964 1965 1966 | 1967 A SHORT-TERM INTEREST RATES * E U R O - D O L L A R - LONDON US SWITZERLAND CANADA US 1962 1963 1814 1965 • r • r ) *.» c. v *• r ^ i r ' e s for c !! ccL-r,i'if» e xc• p' ) o p ~ n (A v * r 3 Q« r#l# en kc nk loom and d 1 s c o u • S ' ; t-r " h a » r c 1'' - c t p) c; n d G • r — o n > (lnt«rfconj Loan Rote) 1966 LONG-TERM BOND YIELDS GERMANY EURO-DOLLAR BONDS NETHERLANDS CANADA SWITZERLAND ! : ! - 1 ! ' i 1 1962 1 ; i i I I i 1963 1 1 I ! I i i i 1 I I ! i 1964 1 - ! M ; i ; M 1965 i : j , I 1 I j ! I ! M 1966 I I I bFCT EXCHANOl RATES - MAJOR CURR1NCIB8 A8AIMST U.S. DOLLAR SWISS FRANC G E R M A N MARK U.K. STERLING FRENCH FRANC BELGIAN FRANC DUTCH GUILDER CANADIAN DOLLAR .z-'t " I T A L I A N LIRA J A P A N E S E YEN D 1365 H J 1866 1967 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS —NEW RATES YORK PREMIUM GERMAN MARK V SWISS FRANC POUND STERLING DISCOUNT — ! 2 PREMIUM DUTCH GUILDER i FRENCH FRANC " CANADIAN DOLLAR DISCOUNT- AGAINST POUND STERLING — L O N D O N PREMIUM S W I S S F R A N C /• G E R M A N MARK |V\y\ U.S. DOLLAR DISCOUNT- , S M M 1964 1965 S 1966 0 • - J INDUSTRIAL STOCK INDICES ! 195f ;—: ; ! 300 SWITZERLAND GERMANY 1 300 JAPAN 200 CANADA 150 1964 1965 ! 965 H. 13 No. ? II L a t e s t F i g u r e s P l o t t e d i n H.13 Chart S e r i e s , 1967 ( a l l f i g u r e s per c e n t per annum) Chart 1 Chart 5 ( F r i d a y , Feb. 24 ) Euro-$ d e p o s i t 5. 50 U.S. c e r t i f . of d e p o s i t 5. 22 Lower Panel (Friday, ) February 24 5o 13 Finance c o . paper: U.S. Canada Hire-purchase paper, U.K. 5.44 Chart 2 ( F r i d a y , Feb. 24 ) Treasury b i l l s : 90-day 180-day Forward pound - 0. 75 Net i n c e n t i v e (U.K. + ) + 0.55 Chart 6 ( F r i d a y , Feb. 24 ) 5- 56 5.49 Hire-purchase ^aper (February 17 5.55 L occaall--aauutthhoorri it tyy d e p o s i t (February 17 Chart 3 Upper Panel (Period: February 8-15 ) Interbank loan ( m i d - p o i n t ) 5. 27 Euro-$ d e p o s i t (average) 5 Lower Panel (Date: ° January 15 ) Zurich 3-month d e p o s i t P r i c e of gold (Friday, Feb. 17 35.171 ) Chart 4 (Friday, Feb. 24) Canada U.S. Spread favor Canada 4.44 "7TW -0. 15 Forward Canadian $ -0.15 Net i n c e n t i v e (Canada + ) -0.30 Treasury b i l l s : Canadian f i n a n c e paper 5,62 U.S. U.K. Canada 4.59 5.£ _4.44. Inte^bagk ^oan^rate (German) 5. 27 Euro-$ d e p o s i t (London) 5.56 Zurich 3-month d e p o s i t (Date: January 15 Japan composit r a t e (Date: November 30 ) 4.50 ) 7.39 Chart 7 U.S. Gov't. (Wed., 4,50 x ~ + 1.30 Treasury b i l l s : 5c 25 5. 69 5.89 U.K. U.S. Spread favor U.K. Euro-$ d e p o s i t s : Call 30-day March 1, 1967 Feb. 22 _) 4.58 U.K. War Loan (Thurs. , Feb. 23) 6.54 German Fed. ( F r i . , ) 7. 24 Swiss Confed. ( F r i . , Feb. 17 ) 4. 24 Canadian Gov't. •5. 71 Feb. 17 (Wed. , Feb. 22) Netherlands Gov't, perpetual 37. (Friday, Feb. 17 ) 5.74 Euro-$ bonds ( F r i . , Feb. 24 6.30 ) For d e s c r i p t i o n s and sources of d a t a , see s p e c i a l supplement to H.13, Number 239, March 16, 1966.
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