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B O A R D OF e O V E K N O R S DIVISION OF I N T E R N A T I O N A L F I N A N C E H .13 No. 5: May 1 1 , 1962 C CAPITAL MARKET DEVELOPMENTS ABROAD Ie Germany IIo Nine Charts on F i n a n c i a l Markets Abroad Germany; Money and Capital Markets during March Conditions i n money and c a p i t a l markets t i g h t e n e d i n March and A p r i l . Pressures on s h o r t r a t e s i n March were produced by s e a s o n a l t a x i n f l o w s o At the peak of the March s t r i n g e n c y , d a y - t o - d a y money r a t e s reached a peak of U per c e n t , 1 per c e n t above Bank Rate* The commercial banks r e p a t r i a t e d funds from abroad i n s i z e a b l e amounts t o meet domestic l i q u i d i t y requirements. During A p r i l , the r a t e f l u c t u a t e d w i t h i n a range of 2 - 1 / 8 t o 3-1/U per c e n t as money market c o n d i t i o n s eased somewhat. The banks r e - e x p o r t e d funds abroad but i n l e s s e r amounts than the March i n f l o w . During the period under r e v i e w , t h e Bundesbank took a d d i t i o n a l L s t e p s to encourage the banks t o keep t h e i r s h o r t e s t t e r n l i q u i d a s s e t s i n German, rather than i n f o r e i g n , money markets. The c e n t r a l bank r a i s e d i t s s e l l i n g r a t e on Treasury b i l l s from 1 - 7 / 8 t o 2 per c e n t a t t h e end of March and t o 2 - 1 / 8 per c e n t on A p r i l 1 3 . In a d d i t i o n , the a u t h o r i t i e s reduced t o 0 . 2 5 per cent the charge on forward d o l l a r swap of m a t u r i t i e s from 2 t o 6 months but kept the r a t e on 1 - 2 month swaps unchanged a t 0 . 5 0 per cent per annum ^ l i c h i s above the market r a t e f o r the forward d o l l a r . Following i s a summary of German i n t e r e s t r a t e s ( p e r . c e n t per annum) through March 1962s Spring 1959 low p o i n t 1961 March 1962 February March"!/' Monthly range Discount r a t e 2,75 3.50 Treasury b i l l s (60-*90-day) 2 - 2.13 2.50-3.00 Interbank l o a n r a t e s s Day-to-day Three-month 1.75=2.88 2.50-U.25 3e50-U.00 2.50-2.88 3 1.88 1.13-2.88 2.38-3.00 1o88-2OOO 2.25-U.OO 2.50-3.00 Monthly average Commercial bank r a t e s : Loans (maximum) Savings d e p o s i t s (6-12 mos.) Time d e p o s i t s (6-12 mos.) Bond y i e l d s ; Mortgage Industrial Public a u t h o r i t i e s T o t a l bonds £ / Preliminaryo If I 8.00 U.25 3o25. 7.50 3.50 2.75 n.a. n.a. n.a 0 6.1 5.8 6.0 5.8 5.7 5.9 n.a. n.a. n.a. n.a. 5.9 6.0 DECONTROLLED AFTER SIX MOUTHS NOT FOR PUBLICATION - 2 - On the c a p i t a l market 5. a pause i n p l a c i n g new i s s u e s was apparent i n Marcho However, the bond market continued strong i n March and e a r l y A p r i l 5 with y i e l d s continuing to decline» Late i n A p r i l 0 however 9 the market turned and t h e GerMri • a u t h o r i t i e s decided t o p l a c e an i m p o r t a n t new i s s u e a t a 5o ? 5 per cent coupon-instead of going to 5 0 50 p e r cent<, as had e a r l i e r been considered,. I s s u e s placed a t t h i s r a t e or higher i n A p r i l were over subs cr i b e d g ^ A l ^ g e volume of i n d u s t r i a l and p u b l i c i s s u e s i s planned for May0 f h e stock ma^k^t- d e c l i n e d f a i r l y s h a r p l y i n March and continued weak i n April 0 With abnormally high e x p o r t s reported,, the' German t r a d e s u r p l u s i n March was $168 m i l l i o n and the monthly average f o r the f i r s t q u a r t e r of 1962 exceeded t h e average f o r the f o u r t h q u a r t e r 0 On t h e f o r e i g n exchange marketso t h e D-mark f l u c t u a t e d c l o s e l y around par except i n the l a t t e r p a r t of March when i t s t r e n g t h e n e d i n the a f t e r m a t h of the B r i t i s h Bank Rate reduction« Money market o F a i r l y t i g h t c o n d i t i o n s p r e v a i l e d on the German money market throughout March» The payment of s e v e r a l b i l l i o n DM of income and corporation, t a x e s , due March 105, t o g e t h e r with demand f o r c r e d i t by b u s i n e s s i n connection w i t h the spring expansion of economic a c t i v i t y s were the major f a c t o r s c o n t r i b u t i n g to the demand f o r funds= In t h e l a s t week of F e b r u a r y c o m m e r c i a l banks began r e p a t r i a t i n g s h o r t - t e r m f u n d s to meet domestic l i q u i d i t y requirements 9 and i n March i n c r e a s e d t h e i r borrowing from the c e n t r a l bank and cashed money-market papero In s p i t e of t h e s e measurese i n t e r b a n k r a t e s f o r day-to-day money r o s e b r i e f l y as high as L per cento Interbank r a t e s f o r 3-month money, on the other hand s f l u c t u a t e d only between 2«,5 and 3 per cento At the end of March? the Bundesbank r a i s e d i t s s e l l i n g r a t e s f o r Treasury b i > l s by - e i g h t h of 1 per c e n t (from 1=7 ; 8 t o 2 per cent f o r 3-month b i l l s ) g and at vhe same time lowered i t 5 charge f o r forward DMd o l l a r swaps from 0 o 50 per cent to Q a 25 per cent f o r m a t u r i t i e s of 2 t o 6 monthso but r e t a i n e d t h e r a t e of 0o50 per c e n t f o r one-month swaps» The Bank i ? r. i n e f f e c t , i n t e r e s t e d - i n encouraging the export of only l o n g e r - t e r m commercial bank f u n d s 0 Treasury b i l l r a t e s were i n c r e a s e d by a f u r t h e r one-eighth of 1 per cent on A p r i l 13„ These two i n c r e a s e s i n Treasury b i l l r a t e s o p l u s the 0„50 ;-harge f o r one-month swaps 9 have p r a c t i c a l l y e l i m i n a t e d t h e i n c e n t i v e tc hold very s h o r t - t e r m funds abrcado The Bundesbank u according to P r e s i d e n t Blessing i n a speech on A p r i l 8 9 w i l l i n t h e f u t u r e make more i n t e n s i v e use of t h e instruments of monetary policy y , because* as he said* 'We no longer have to worry about the balanca-cf^payments surplu? 0 u In a f u r t h e r move t o r e l a x i t s b a r r i e r s a g a i n s t the i n f l o w of fund? o domestic or f o r e i g n ^ t h e Bank announced t h a t e f f e c t i v e May 1 ? the ban on commercial banks paying i n t e r e s t on n o n r e s i d e n t time d e p o s i t s would be l i f t e d » This prcrscr i p t i c n 9 t o g e t h e r with a ban on i n t e r e s t on n o n r e s i d e n t -sight d e p o s i t s which i s s t i l l i n e f f e c t , were i n t r o d u c e d in__June I960. Nonresidents are s t i l l n o t allowed t o i n v e s t i n German money-market paper* NOT FOR PUBLICATION NOT FOR PUBLICATION - 3 - The money market eased i n the f i r s t week of A p r i l , and the German commercial banks again exported surplus funds» The market tightened again j u s t before Easter, and remained t i g h t , as i s u s u a l , into the f i r s t week of May, Rates f o r interbank loans of day-to-day money ranged from 2 - 1 / 8 t o 3-l/U per cent, and r a t e s f o r 3-month money ranged from 2 - 1 / 2 t o 3-1/8 per cent; i n both cases these r a t e s were s l i g h t l y lower than those prevailing i n April 1961 (see Table, page 7 =) / Bond markst a After reaching a record l e v e l i n February, new i s s u e s of f i x e d i n t e r e s t - b e a r i n g s e c u r i t i e s i n Germany dropped sharply i n March ® For the f i r s t quarter of 1962, new i s s u e s of mortgage, and communal bonds were 25 per cent above the year-ago l e v e l , but placings by'the s o - c a l l e d "occasional" borrowers (that i s , i n d u s t r i a l , public a u t h o r i t y , and foreign) was s l i g h t l y lower f o r the quarter than l a s t y e a r . Security gross placements (nominal values i n m i l l i o n s of DM, monthly or monthly average) i n recent months were as f o l l o w s s I "Occasional" borrowers 2 Special c r e d i t i n s t i t u t i o n s Industrial Public a u t h o r i t i e s Foreign 101 ho Wi5 ' Total Mortgage and communal bonds? Mortgage Communal Total Shares 11 . 1961 III 8U 17 103 I IV U5 86 h 69 50 80 wmm» U9 112 316 33 510 1962 Feb. Jan, --. 60 150 £30 100 - - 60U 8U0 87 83 110 Uu h 75 8 586 20U 135 199 293 21*6 302 22 9 288 181 331 180 387 287 525 309 280 30k 2# 531 1U1 469 67U 106 831 130 584 263 511 98 358 2U8 606 135 J k 885 876 82U 1,333 1,602 1,610 229 Total s e c u r i t i e s a / 1,3ft' a / Includes "Kassenobligationen»" . With new i s s u e s dropping o f f , demand f o r e x i s t i n g bonds was maintained; y i e l d s continued t o drop i n March and e a r l y A p r i l , but were checked i n the l a t t e r part of April as market conditions became l e s s favorableo Yields to maturity on the 5 - 1 / 2 per cent Railway bond of 1958-83 declined from 5°71 per cent a t the end of February t o 5»58 per cent a t the end of March, and t o 5<>55 per cent i n mid-April, but t h e r e a f t e r the y i e l d tended to r i s e » The DM 250 m i l l i o n loan of the Federal Railways issued e a r l y i n April a t 99-1/2 with a coupon of 5 - 3 A per cent was oversubscribed on the day of i s s u e , as was an i n d u s t r i a l loan at 6 per cento The Federal Loan Committee approved about DM 500 m i l l i o n of new i n d u s t r i a l i s s u e s for May, to be issued at an average y i e l d of 5*75 per Mar • NOT FOR PUBLICATION 786 - U- NOT FOR PUBLICATION cento The c i t y of S t u t t g a r t - w i l l i s s u e a DM 5>0 m i l l i o n loan a t 5-3/U p e r cent i n t e r e s t and an i s s u e p r i c e of 99-1/2 p e r cent on May 15. There was c o n s i d e r a b l e u n c e r t a i n t y i n t h e market a s t o t h e course of long-term y i e l d s i n t h e immediate f u t u r e » On May hp the K r e d i t a n s t a l t fuer Wiederaufbau (Reconstruction Lean Corporation) announced t h a t i t would i s s u e a 20-year, DM 200 m i l l i o n loan a t p a r on May 10 with a coupon of 5-3/U p e r c e n t . The f a c t t h a t t h e new bonds were not o f f e r e d a t a 5 - 1 / 2 per cent coupon as had e a r l i e r been thought i n d i c a t e s t h a t new i s s u e s i n the immediate future •will bear t h e 5-3/L per s e n t coupon <> i n c l u d i n g the F e d e r a l Government's l o a n s which has a p p a r e n t l y been postponed again* A loan by the Lastenausgleichbank ( E q u a l i s a t i o n of War Burdens Bank) w i l l precede the Government's l c a n s b u t no e x a c t time has been s e t f o r e i t h e r . There i s some evidence t h a t s d e s p i t e a r e p o r t e d weakening of the bond market, an i s s u e y i e l d of 5~3fh per cent may be a t t r a c t i v e 0 An I l s e d e r S t e e l COo l o a n s -which was oversubscribed a t an i s s u e p r i c e of 99~l/2 p e r cent and a 5 - 3 A per c e n t coupon on May 3 S was o f f e r e d i n q u a n t i t y the following day a t an e f f e c t i v e y i e l d equal t o i t s coupon .rate 0 Stock marketo On t h e whole 5 demand was weak on the German stock market i n March and~April 9 and turnover was low 0 After breaking sharply on March 22 f o l l o w i n g M i n i s t e r E r h a r d 8 s s t r o n g warning of the dangers of r i s i n g costs^ the market s u s t a i n e d a r a l l y f o r nine days s but broke again on A p r i l 5 S and showed l i t t l e tendency to recover t h e r e a f t e r . At the beginning of May t h e F r a n k f u r t e r ALXgems:me_cs index of German stock p r i c e s 9 a t 199o98 5 was 2% p e r cent, below the I960 h i g h . Recent l e v e l s of t h e FoAoZo index of s t o c k p r i c e s (December 31 <> 1958 equals 100) were: J u l y 31 Augo 31 Octo 13 31 Nov, 17 30 Dec* 29 Jar 31 Feb. 3 27 223.80 203o38 206.35 . 219.36 229.72 227.36 220.92 1962g 213.88 215.26 21: .90 P Mar. 7 20 23 26 27 Apro 3 , h 11 18 25 May 2 h 217.30 212.33 207.25 201.95 20U.91 210.12 208.07 200.914 202.66 203.W 201.07 199o98 The controversy going on i n Germany over price and wage p o l i c y <, which the swagen p r i c e s on Marsh 30 i n t e n s i f i e d s was reported to be a i n t h e s t a g n a t i n g demand f o r German shares* In the l a s t two r i l p r i c e s of Volkswagen shares dropped about 5 p e r c e n t , a an almost unchanged l e v e l f o r the index as a whole 3 d e s p i t e t the avowed r eason f o r t h e VW p r i c e i n c r e a s e was t o p r o t e c t s of the stockholderso Foreign t r a d e o In March q. German f o r e i g n t r a d e showed a whopping b i g s u r p l u s any way you look a t i t 0 As r e p o r t e d by the German S t a t i s t i c a l O f f i c e / t h e s u r p l u s amounted to Sllil* m i l l i o n j a d j u s t e d f o r i n f l a t e d NOT FOR PUBLICATION ™ 5 - NOT FOR PUBLICATION Imports due to a change i n customs procedures, i t was $171 m i l l i o n ^ and the l a t t e r adjusted f o r s e a s o n a l v a r i a t i o n amounted t o $168 m i l l i o n , . The s e a s o n a l l y a d j u s t e d surplus r e s u l t e d from a 5 per c e n t r i s e i n e x p o r t s t o gether with a h per c e nt d e c l i n e i n imports compared w i t h the JanuaryFebruary averageso For the f i r s t quarter, the s e a s o n a l l y a d j u s t e d trade surplus averaged $109 m i l l i o n per month s which i s somewhat g r e a t e r than i n the f o u r t h quarter of 1961 9 but o n e - t h i r d below the average of the f i r s t three quarters» 1 German Foreign Trade ( s e a s o n a l l y a d j u s t e d , monthly or monthly averages 9 i n m i l l i o n s UoS„ d p i l a r s ) Calendar year i960 1961 Exports 951 1,052 1961 I l,0L7 n 1,077 1962 - Monthly Feb„ Mare Jan 0 hi IV 1962 I 1,06'0 1,058 1,103 1,088 1,081* 1,138 Imports 8U8 917 852 936 911 960 99k _,_915 1,097 970 Surplus 103 135 195 Ihl 151 98 109 173 - 13 168 The Ausfuhrkredit A0G0 (Export Credit Company) has announced t h a t e f f e c t i v e A p r i l 1 , 1962 9 the term f o r which i t w i l l extend f i n a n c i n g t o German exporters (or importers of German goods) has been extended from f i v e t o e i g h t y e a r s s and t h a t i t has a l s o eased downpayment c o n d i t i o n s » Foreign exchange r e s e r v e s „ Gross gold and f o r e i g n exchange r e s e r v e s of the Bundesbank r o s e by~&232 m i l l i o n i n March and d e c l i n e d by $56 m i l l i o n i n April„ The r i s e i n March was r e p o r t e d l y due mainly to r e p a t r i a t i o n of funds by German commercial banks t o meet t i g h t domestic money market conditions*, whereas t h e d e c l i n e i n A p r i l was due s a t l e a s t i n p a r t s to the subsequent reinvestment of funds abroad as German money market c o n d i t i o n s eased 0 Data on the magnitudes of German commercial bank h o l d i n g s abroad i n March and A p r i l are n o t y e t a v a i l a b l e » Another f a c t o r whish probably c o n t r i b u t e d t o the r e s e r v e g a i n i n March was the very l a r g e trade surpluso A p r i l r e s e r v e f i g u r e s were a d v e r s e l y a f f e c t e d by & $33 m i l l i o n i n d e m n i f i c a t i o n payment t o France; on t h e other hand, B r i t i s h purchases of D-marks on t h e market f o r repayment of $35 m i l l i o n i n marks t o the I n t e r n a t i o n a l Monetary Fund a t the end of A p r i l augmented German reserveso In February the a s s e t s of German commercial banks held abroad d e c l i n e d by $10 m i l l i o n , which brought the t o t a l German r e s e r v e g a i n f o r the month t o $26 m i l l i o n , i n s t e a d of a d e f i c i t as was f o r e c a s t i n t h i s r e p o r t l a s t montho However, judging by the $55 m i l l i o n r i s e i n the IMF0 s h o l d i n g s of DM i n February, the B r i t i s h repayment of marks t o the Fund on February 28 must have exceeded the German r e s e r v e g a i n during t h e month» I t i s presumed t h a t the Bank of England acquired most of the DM f o r the NOT FOR PUBLICATION =» 6 ° NOT FOR PUBLICATION repayment on the market i n February» Monthly or quarterly changes i n German reserves of gold and f o r e i g n exchange i n 1961 and 1962 ( i n m i l l i o n s of U.S. d o l l a r s ) were as f o l l o w s s I Conrnio banks a / •300 II Bundesbank Total III IV 1962 Febo Mar. -570 • 68 -731 + 36 •232 •UoU - 7k ••d*7 >818 - 10 n.a. b/+122 -6Wi II 1961 -282 • 26 n.a» •799 -359 a / Balances with f o r e i g n banks and money market investments abroado b / After s p e c i a l debt prepayments of $776 m i l l i o n to the United States and the United Kingdom<> The t o t a l would be a reserve gain of $898 m i l l i o n s i f adjusted f o r these transactionso • 87 Foreign a i d . The German cabinet has approved the establishment of a Development Company whose primary purpose w i l l be to acquire c a p i t a l p a r t i c i p a t i o n s i n small- and medium-sized concerns which i n v e s t and s e t up work-shops i n underdeveloped countries <, I t may a l s o make long-term s low i n t e r e s t loans 0 The Company w i l l have an i n i t i a l paid-in c a p i t a l of DM 35 m i l l i o n , most of which w i l l be paid out of the 1962 Federal budget appropriation of DM 175 m i l l i o n f o r b i l a t e r a l development aide The Company w i l l a l s o provide investment consultation s e r v i c e s f o r small investors i n developing countries„• I t i s expected to be i n operation by July, Foreign exchange o After weakening f o r a few days following the reduction of the Bank of England's discount rate on March 22 p the spot dollar strengthened against the D-mark i n A p r i l s with the DM f a l l i n g below par a t the end of A p r i l , Friday quotations f o r the spot D-mark during the reporting period were ( i n tLS 0 cents)% . Mar. 2 9 16 23 30 > 25„015 2$ .001* 26.006 25oOU5 25.039 April 6 13 20 27 May h 25»020 25.013 25.005 21.998 25.010 Europe and B r i t i s h Commonwealth Section,, IIo Nine Charts on Financial Markets Abroad NOT FOR PUBLICATION Germany (per cent per annum) 3°mo0 Eurod o l l a r deposits London 1961-Oct. 6 Nov. 10 Dec, 22 1962-Jan. $ Feb. 16 Mar. 9 16 23 30 Apr o 6 13 19 27 3-mo. i n t e r bank loans Frankfurt Spread i n favor London 3—mo. forward Marks v s . US $ Comm. bankSL Market ll.OO 3.63 3-75 -0.75 -0.32 +0.13 -0.25 -0.25 3.88 3.50 3.31 3»a •3.6? 3.63 3.69 3.63 3.So 3.50 3.50 3.00 2.75 2.63 2.63 2.6) 2.63 3.00 2.81 2.81 2.9U +0.50 +0.56 +O081 +I0O6 +1.00 +lo06 +0o63 +0.69 +0o 69 +0.56 -0.25 -0.50 =0.50 =0.50 -0.50 3.25 - 3.31 — 3°rao. Treas. b i l l s U.K. -0.60 6.00 5.31 5.28 2.00 2.U7 2.00 2.60 U.3U 1.88 1.88 2.7U 2.83 2.76 2.72 -0.95 5.W* 5.03 U.81 U.38 it.3U L.28 L.25 U.19 U.03 -0.30 -0.35 =o 0U0 =0.38 =0 0I4.O =0 0 32 "0.25 -0.25 -0.25 -0.25 U.S. -0.73 -1.30 =0 0 62 =0.58 =•0.56 -0.25 Ger. 2.13 1.88 1.88 1.88 2.00 2.00 2.13 2.13 2.13 2.31 2.70 2.75 2.70 2.7U 2.73 2.7k a / Bundesbank s p e c i a l rate* Germanys Comm. bank loans*/ 1959-March Dec. Selected Loanfl Deposit and Security -Rates (per cent per annum) 6-12 mo. d e p o s i t s Savings 7.2$ 3.2S 8.50 3.25 1960-March Dec. 8 . # 1961-March June Sept. Dec, 8.00 7.50 7.50 7.50 1962-Jan. Feb. Mar. April 7=50 7.go 8.50 Time Share yields Yield 6.2 3.22 2.19 2 oh UoO 2.27 1.96 Uol U.2 2.50 3.25 5.U 5.9 3.75 k.5o 3.25 3.50 5.9 6.U 6.2 it.25 U.00 3.50 3.5o 3.25 2.75 2.75 2.75 5.8 5.9 5.5 5.9 6.0 6.0 6.0 2.63 2. h9 3.7 3.U 3oh 3.5 3.5o 3.50 2.75 2.75 5.8 5.7 5.9 5.7 2.57 2.61 3.1 ^ ' a / Approved c f e d i t s on current account. Bond y i e l d s 5-1/2% Public Railway author1958-83 i t i e s 6.3 5.6 5.6 2.11 2.19 3.3 • INTEREST ARBITRAGE, THREE-MONTH UNITED TREASURY BILL R A T E S Y RATE DIFFERENTIAL AND STATES/CANADA V V A / ^ V - FORWARD , V ^ / CANADIAN DOLLAR EXCHANGE COVER S P R E A D IN F A V O R O F C A N A D A + RATE DIFFERENTIAL WITH FORWARD N E T I N C E N T I V E IN F A V O R OF C A N A D A + 1959 1960 1961 1962 , INTEREST ARBITRAGE/ NEW YORK/LC? DON Friday figure t 3-MONTH Percent TREASURY BILL per annum FATES RATE D I F F E R E N T I A L A N D j 3 - M O N T H FORWARD STERLING 1 I 1 1 R A T E D I F FERE N T I A L W I T H " F O B 1 W A R D E X (: H A N G E C O V E R 1. 1 A / % .Jv - V \ , - • J 11 • 1 1 M 1 1 J 1 1 $ 1 1 D I 1959 1 M 1 1 J I960 1 1 S 11 D 1 1 M \ 1 1 J 1961 - 1 1 S I I 0 1 1 M 1 1 J 1 1 $ 1962" 1 1 D INTEREST Friday ARBITRAGE FOR GERMAN COMMERCIAL BANKS figures 3-MONTH TREASURY , EURO-DOLLAR BILLS, DEPOSIT INTERBANK LENDING RATE A N D RATES .EURO-DOUAR RATE DIFFERENTIAL AND FORWARD DEUTSCHE MARK S P R E A D IN F A V O R O f F R A N K F U R T : L I I I N T E R B A N K LOAN RAT F O R W A R D RATE TREASURY BILLS RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER INTERBANK LOAN RATE I960 Note: 1961 Special forward role available lo German commercial banks. 1962 \\ INTEREST ARBITRAGE, FRANKFURT / LONDON " 3 - M O N T H TREASURY BILLS A N D I N T E R B A N K L E N D I N G RATES \ A GERMAN INTERBANK RATE D I F F E R E N T I A L A N D J - 3 - M O N T H FORWARD STERLING S P R E A D IN F A V O R OF U N I T E D K I N G D O M BILLS O V E R : GERMAN TREASURY BILLS RATE D I F F E R E N T I A L W I T H GERMAN INTERBANK FORWARD EXCHANGE COVER y- ,v 1962 S H O R T - T E R M INTEREST RATES * 7 1951 I 1141 3-month treoiury bill rolei lor oil countries except Japan (3-m6nlh interbank depowt role) ond Switzerland (l-monthdepoiil rata). | 3-month role lor U. S. dollor depotiti in London. LONG-TERM BOND YIELDS INDUSTRIAL STOCK INDICES* GERMANY / \ r /> V i ii M ii ii i SWITZERLAND 1 1 1 1 1 1 ( 1 III . 4 I II 1 I I I II 1 \ \ y ^ _ 1 l l l l ! 1 1 1 ! 1 1 i 1 It II 1 II 1J U.S. 1 1 1 1 1 1 1 II I I1. I' II II 1 J II 1 I II 1 I I I I 1 l > S P O T E X C H A N G E RATES - M A J O R - ; CURRENCIES AGAINST U.S. —: DOLLAR <SJ»1 w 3-MONTH AGAINST FORWARD U . S. D O L L A R S , AGAINSTJPOUND AGAINST EXCHANGE RATES POUND STERLING - L O N D O N STERL N G - L O N D O N FRENCH F R A N C A DISCOUNT- w
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