The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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 OOVER N OR S N o " 340 " M a " h 6 ' 1968 " CAPITAL MARKET DEVELOPMENTS ABROAD I. \ Ten Charts on Financial Markets Abroad 3II. t Latest Figures Plotted in Ik 13 Chart Series, 1968 ^LfLitoJ 0na»jJuJ~ I. Ten Charts on Financial Markets Abroad Chart Chart 1 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London: Yields on U.S. Dollar Funds London: Yields for U.S. Dollar Investors on 3-Month Funds Interest Arbitrage: Frai kfurt/London, Zurich/London Interest Arbitrage: New York/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 Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS 0 NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES Wednesday figures Per cent per annum 8 E U R O - D O L L A R DEPOSIT 7 6 U . S . C E R T I F I C A T E OF DEPOSIT 4 3 • : 1 h v x ; i CALL : - • 1 ! E U R O - D O L L A R OVER U. S. CER T I F I C A T E OF DEPOSIT i [ \y ! 1 1 M i l l 11 EURO-DOLLAR 1 i DEPOSIT ; 1 1 ... RATE VS. I I ; 'II U.S. 1 ' 1 1 FEDERAL i FUNDS i : i 1 1 1 1 1 1 M 1 I I I RATE C A L L EURO-DOLLAR D E P O S I T S FEDERAL FUNDS T E U R O - D O L L A R OVER FEDERAL F U N D S Sept. Mar. 1965 Dec. ' JuiV 1966 Sept. Dec. Mar. Sept. 1967 Dec. Mar. Jun. 1968 Sept. Dec. - 1 . LONDON: YIELDS EURO-DOLLAR Friday figures FOR U.S. DEPOSIT DOLLAR INVESTORS ON 3 - M O N T H FUNDS RATES Per cent per anni 30 DAY 90 DAY 180 DAY CALL H I R.E' P U R C H A S E AND LOCAL AUTHORITY DEPOSIT RATES X HIRE E U R O - D O L L AR f\ W PURCHASE * fV DEPOSIT I a/* x/\r D I F F E R E N T I A L V (covered) ' • s i FAVOR, H I R E P U R C H A S E " FAVOR EURO DOLLAR V EURO-DOLLAR DEPOSITII L ^ C A I T A U T H ^ ^ DIFFERENTIAL V r ^ A /X r V- y v v V v A 1965 If - I : i FAVOR L O C A L A U T H O R I T Y J 1966 1967- * FAVOR E U R O - D O L L A R 1968 INTEREST ARBITRAGE: FRANKFURT INTERBANK F R A N K F U R T / L O N D O N , LOAN RATE VS. LONDON Z U R I C H / L O N D O N EURO DOLLAR RATE (COVERED) ,IN TERMS INTERBANK LOAN EURO-DOLLAR DM t ~ FAVOR F R A N K F U R T DIFFERENTIAL FAVOR ZURICH OF RATE DEPOSIT RATE VS. L O N D O N EURO-DOLLAR RATE (COVERED) EURO-DOLLAR * IN TERMS OF SWISS FRANCS EURODOLLAR SWISS DEPOSIT RATE FAVOR DIFFERENTIAL FAVOR M I C E OF GOLD IN ZURICH EURODOLLAR U S dollar equivalent per Fine ounce L O N D O N 35.3 35.0 1965 1966 1967 1968 4 ^ INTERST ARBITRAGE, 3-MONTH TREASURY UNITED BILL STATES /CANADA RATES CAN. F I N . CO UNITED PAPER STATES CANADA BILL RATE DIFFERENTIAL AND FORWARD CANADIAN SPREAD IN 1 PREMIUM DOLLAR - F A V O R OF C A N A D A FORWARD RATE DISCOUNT 3-MONTH : ! COVERED 1 RATE • . ; I • — DIFFERENTIALS (NET INCENTIVES) TREASURY PRIME FAVOR CANADA BILLS FINANCE PAPER FAVOR CANADA FAVOR U . S . 1965 1966 1967 1968 2 INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY D E P O S I T S ! LONDON NEW YORK RATE DIFFERENTIAL AND 3 - M O NTH FORWARD STERLING SPREAD IN FAVOR OF LONDON FORWARD RATE DISCOUNT \/Y RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET IN FAVOR OF LONDON INCENTIVE) /A \ ft IN FAVOR OF NEW YORK •2 33 1965 1966 1967 196# SHORT-TERM INTEREST RATES* Per cent per annum E U R O - D O L L A R - LONDON t UK U.S. SWITZERLAND JAPAN CANADA I V / % v GERMANY 1966 1965 1964 *3 month treasury bill rotes for oil countries except Japan Switzerland 3 month deposit rate and Germany ~J~ 3 month rate tor US dollar deposits in London Average rate on bank loans and discounts Interbank Loan Rote' 1967 1968 ,2 LONG-TERM BOND YIELDS Weekly figures per cent per annum NETHERLANDS CANADA SWITZERLAND GERMANY - - • V - - . . / ^ \ ^ U.K. r - V : / EURO-DOLLAR B O N D S * u.s. 1 II II M ! 1 i 1 1 II 1963 1 II 1964 1! 1 ! 1 M i ! ! ! 1965 * Average of yields for four foreign government dollar bonds auoled in London * * New series for Switzerland starts 3 3-67 1 ! II M II 1 1 II 1916 1 1 i II i 1 1 II 1 1 1 1 II 1967 1 • \ SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR S W I S S FRANC GERMAN MARK 1 U.K. STERLING B E L G I A N FRANC l/V DUTCH GUILDER FRENCH FRANC T ' I T A L I A N LIRA C A N A D I A N DOLLAR X/ J A P A N E S E YEN S of the pound sterling from $2 80 to $2 40 J M 1965 1966 1967 S 0 M J 1968 S 0 \0 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS — N E W RATES YOR.K PREMIUM* GERMAN MARK fj? SWISS FRANC POUND S T E R L I N G D U T C H GUILDER \ F R E N C H FRANC C A N A D I A N DOLLAR DISCOUNTAGAINST POUND STERLING — L O N D O N GERMAN M A R K | S W I S S FRANC U . S . DOLLAR 1965 1967 1966 1968 w INDUSTRIAL STOCK INDICES JAPAN 1964 1965 1966 1967 H.13 No. 340 March 6, 1968. II. Latest Figures Plotted in H.13 Chart Series, 1968 (all figures per cent per annum) Chart 1 (Wednesday, Upper. Panels Euro-$ deposit 5.50 U.S. certif. of deposit Lower Panels ) Feb. 28 (Friday, Treasury bills: (Wednesday, Feb. 28 4. RL Federal funds 4.72 Chart 2 (Friday, March 1 ) ) 90-day 180-day 5. 68 6.00 Hire-purchase paper (Feb. 23) Local-authority deposit (Feb. 23) Forward pound -3.09 Net incentive (U.K. +) -0.85 (Date: Jan. 15 Treasury bills: 1 Euro-$ deposit (London) 5.68 Zurich 3-month deposit (Date: Jan. 15 ) Japan composite rate (Date: Dec. 29, 1967) ) ) 3.00 Chart 7 U.S. Gov't. (Wed. , FPh. U.K. War Loan (Thurs., 28 V Feb. 2 # ) 6.60 4-1. 60 Forward Canadian $ -1.50 Net incentive (Canada +) +0. 10 b.00 Canadian finance paper (Feb. 23) 6. 62 (Mar. 1) 6.75 5.12., 7.22 German Fed. (Fri., Mar. ) 6. 67 Swiss Confed. (Fri., 1 Feb. 22 ) 4.50 Canadian Gov't. (Wed. , Feb. 2 8 ) 6.90 Netherlands Gov't, perpetual 3% (Friday, Feb. 23 ) 6. 12 Euro-$ bonds (Fri., Mar. 7.40 35.198 Canada U.S. Spread favor Canada 6.60 5 37 ) Chart 4 (Friday, Mar. ~r$b 3.50 3. 00 * ) Interbank loan rate (German) (Feb. 24-29) 3.49 Zurich 3-month deposit Price of gold (Friday, Feb. 23 U.S. U.K. Canada 3.50 Euro-$ deposit (average) Chart 6 March 1 5. 46 Chart ,3 (Period: Feb. 24-29 Interbank loan (mid-point) Lower Panel 5.00 +2.24 (Friday, Euro-$ deposits: Upper Panel 7.24 U.K. U.S. Spread favor U.K. Treasury bills: 5.25 5. 62 ) 5.38 Call Euro-$ deposits Call 30-day Chart 5 March 1 1 ) For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966.
@FedFRASER