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BOARD OF SOVtRNOU H . 13 No. 348 May 1, 1968. CAPITAL 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 Chart Chart Chart Chart Chart Vchart JChart * 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: -Frai kfurt/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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS .NEW Y O R K - L O N D O N : YIELDS O N U . S . DOLLAR F U N D S 3 - M O N T H D O L L A R DEPOSIT RATES EURO-DOLLAR DEPOSIT J 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 C A L L E U R O - D O L L A R D E P O S I T RATE VS. U.S. FEDERAL F U N D S 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. Jim. Sept. Dec. Mar. 1965 Jm. 1966 Sept. Die. Mar. in*. 1967 Sept. Die. Mar. Jee. 1166 Sept. lee. L O N D O N : YIELDS EURO-DOLLAR Friday figures FOR U . S . D O L L A R INVESTORS O N 3 - M O N T H FUNDS D E P O S I T RATES ' ' Per cent per 3 0 DAY CALL 180 DAY 9 0 DAY M J 1965 S D M J S 1966 D M J S 1967 D M J S 1968 D L O N D O N : YIELDS FOR U . S . D O L L A R I N V E S T O R S O N 3 - M O N T H F U N D S HIRE PURCHASE A N D LOC v AL A U T H O R I T Y D E P O S I T RATES ( c o v e r e d ) Fridoy ligurei ' Per cenl per annum EURO DOLLAR DEPOSIT. V HIRE P U R C H A S E FAVOR HIRE PURCHASE ] DIFFERENTIAL FAVOR EURODOLLAR EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR DIFFERENTIAL 1965 1966 1967 1968 I INTEREST A R B I T R A G E : F R A N K F U R T / L O N D O N , Z U R I C H / L O N D O N FRANKFURT I N T E R B A N K L O A N RATE VS. L O N D O N EURO D O L L A R RATE (COVERED) [ I IN TERMS OF DM EURO-DOLLAR I N T E R B A N K L O A N RATE i 1 • DIFFERENTIAL i i i i ! . M % i ^ A v ^ v / i r h , , I i ; ; , . • i i FAVOR FRANKFURT 1 ! W i Y i * I i I . i I 1 1 " FAVOR EURO-DOLLAR i i I i i i i ZURICH DEPOSIT RATE VS. L O N D O N EURO DOLLAR RATE (COVERED) IN.TERMS OF SWISS FRANCS EURO-DOLLAR S W I S S D E P O S I T RATE I 1 1 i ' ! - DIFFERENTIAL j FAVOR ZURICH ! 1 1 1 , M I i 1 i-L-i 1 PRICE OF GOLD I N L O N D O N . . • ' ; > i i i'i ; " FAVOR EURODOLLAR I N T E R S ? A R B I T R A G E , U N I T E D STATES / C A N A D A Fridoy figure! Per cent per 3 - M O N T H TREASURY BILL RATES 7 C A N . FIN. CO. PAPER UNITED STATES 'YV\ 5 CANADA 3 n , 1 r BILL 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 2 PREMIUM S P R E A D IN FAVOR OF C A N A D A 1 0 FORWARD RATE 1 DISCOUNT 3 - M O N T H C O V E R E D 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 ) FAVOR CANADA 1 TREASURY B I L L S 0 1 2 PRIME F I N A N C E PAPER S 1 1965 1966 1967 1966 n INTEREST A R B I T R A G E , N E W Y O R K / L O N D O N 3 - M O N T H TREASURY BILL RATES U . K . L O C A L AUTHORITY D E P O S I T S ! LONDON V NEW YORK RATE D I F F E R E N T I A L A N D 3 - M O N T H F O R W A R D S T E R L I N G SPREAD IN FAVOR OF LONDON PREMIUM FORWARD RATE ^ v \ DISCOUNT •! RATE D I F F E R E N T I A L WITH F O R W A R D E X C H A N G E COVER (NET I N C E N T I V E ) i i ! IN FAVOR OF LONDON U IN FAVOR OF NEW YORK 1915 1966 1997 tIM 8 EURO DOLLAR • L O N D O N t 7 6 7U.K. 5 O-Vl SWITZERLAND - 4 3 2 9 8 JAPAN 7 r* z v I \ 1 \ \ Xa CANADA \ \ I 1f|4 I M i 1915 1911 Ir.e.wry hill r.le. it •« twiHriw •«<•»! >»*•* r.le e» k««k '•••) •»' (iM.rhe.h l«.» *«•) $wilierle»< (3 m.m'k ) r.l. I- US ™ II 5 "r *.%jr GERMANY i i i i i i i i i i i 6 r V \ 1 1 1 II 19C7 II 4 U 3 iii i iiiii n 2 9## L O N G - T E R M B O N D YIELDS Weekly figures y—^ Per cent per annum NETHERLANDS CANADA U.S. SWITZERLAND 9 GERMANY U.K. EURO-DOLLAR BONDS 8 U.S. EURO DOLLAR BONDS U.S. CORP. 1964 $ * * * * * * * • * Average of New series New series New series 1965 1966 yields for four foreign government dollar bonds auoted «n London for Germany starts 7 9 65 for Switzerland starts 3-3 67 for Netherlands starts 17 66 BONDS / W f 1967 1968 \° SPOT EXCHANGE RATES - MAJOR CURRENCIES A G A I N S T U . S . DOLLAR S W I S S FRANC r GERMAN M A R K - 4 |jjv^u B E L G I A N FRANC DUTCH GUILDER FRENCH FRANC u — 4 . I T A L I A N LIRA ^ K \ h L\Ar JAPANESE YEN ^ Devoluotion of the pound sterling from $2 80 to $2 40 w 3 - M O N T H F O R W A R D E X C H A N G E RATES AGAINST U . S . D O L L A R S - N E W YORK PREMIUM* GERMAN MARK :.caF SWISS FRANC POUND STERLING DISCOUNT- DUTCH GUILDER FRENCH FRANC C A N A D I A N DOLLAR DISCOUNT- A G A I N S T POUND STERLING — L O N D O N PREMIUM* S W I S S FRANC A U.S. DOLLAR BISCINNT1115 1967 11IS 1IM & INDUSTRIAL STOCK INDICES Rotto tcole 360 320 280 240 SWITZERLAND 200 U.S. GERMANY 160 U.K.t 120 360 320 280 JAPAN 240 CANADA 200 US 160 12* 1965 * • • 1966 Swin lank Corporation industrial Hock index Japan: index ol 225 indvtlriol and other stocki traded on the Tokyo exchange 1967 1161 H. 13 No « 348 May 1, 1968. I I . a Latest Figures Plotted in H.13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, April 24 Euro-$ deposit 6.44 U. S. cart if. of deposit 5. 95 Lower Panels (Wednesday, Chart 4 (Friday, April 26 ) ) Treasury bills: Canada U.S. April 24 ) 6. 79 5.49 Spread favor Canada 4-1. 30 Call Euro-$ deposit 5.93 Forward Canadian dollar ~ 5 3 Federal Funds 5.58 Net incentive (Canada +) -0.23 Chart 2 (Friday, April 2 0 ) » Canadian Finance paper 7.00 (April 19) Chart 5 (Friday, April 26 ) Upper Panel - Euro-$ deposits : Treasury bills: U.K. Call 30-day 6.12 6.44 CO-day 180-day 6.50 6. 62 Spread favor U.K. Middle Panel Hire-purchase paper (April 19) Euro-$ deposit (April 19) Lower Panel 4-83 Local-authority deposit 4.45/. Interbank Loan (mid-point) Euro-$ deposits (April 30) Lower Panel (date +1.41 19 Chart 6 (Friday, April 26 ) Treasury bills: U.S. 5.49 U.K. 6^90 Canada 6.79 Interbank loan rate (German) ( April 16-23 ) 3.67 Euro- $ deposit (London) 6. 50 3.59 Zurich 3-month deposit ) (Date: Zurich 3-month deposit ~ 3. 67 (average) March 15" 5.49 U.K. local authority deposit 6.31 (April 19) Euro-$ deposit 6.31 (April 19) Chart 3 I. Upper panel (Period: April 16-23 ) 6. 90 U.S. March 15 ) 2.75 ) 7.45 2. 75 Japan Composite rate Euro - $ rate ^(covejred^ 3. 64 (Date: II. Price of gold (Friday, April 2 6 ) 38.32 Feb. 23 • H. 13 No. 348 May 1, 1968. II. b. Chart 7 U.S. Gov't.(Wed., April 24 Chart 9 ) ~ 5. 29 (Friday, April 26) U.K. War Loan (Thurs., Apr. 1 8 ) (Thurs.,Apr.25 ) German Fed. (Fri,, April 19 ) 7.23 7.23 6.60 Against U.S. dollars: Swiss francs + 2.86 Dutch Glds. + 1.76 Swiss Confed. (Fri., Apr. 5 ) 4.53 German marks + 2.82 Fr. Francs + i.^ Canadian Gov't. ( W e d . , A p r . 24) 6.67 £ Sterling Can. $ - 1.53 Netherlands Gov't. - 4.53 Against pound sterling: ) 6.50 Swiss francs + 5.68 Euro-$ bonds (Fri., April 26 ) 7.59 U.S. dollars + 3. 75 U.S. Euro-bonds ( March 29 ) 7.35 ( March 29) 6.11 (Friday, Apr. 19 Ger. marks + 7.33 Chart 10 U. S. Corporate Aaa U. S. ( v Chart 8 (Friday, April 26 Swiss francs 4-0. 74 April 26 Japan ( March 22 ) Dutch Glds. + Q, ()i ) 214.2 ) 237.7 U.K. ( F r i . / A p r i l 26 ) 264.0 314.9 German marks +0.31 Can. $ + Q. 20 Switzerland U.K. £ Ster. -0-15 it. Lire + 0.12 Germany ( March 29 ) 244.0 - p. 6g Canada ( April 12 ) 195. 6 Belgian francs +0. 58 3&p. Yens French francs (Fri, April 26 ) +0. 03 For descriptions and sources of data, see Special Supplement No. 343-S dated March 2/, 1968.
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