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DIVISION OF I N T E R N A T I O N A L F I N A N C E BOARD OF GOVERNORS H. 13 No. 148 May 13, 1964. ^ ^ T A U V I A R K E T DEVELOPMENTS ABROAD ; I; I. II. German^ Nine Charts on Financial Markets Abroad Germany: Money and Capital Markets in April 1964 Uncertainties both about the effects of measures already taken and about future governmental action designed to reduce capital inflow and to moderate the domestic business expansion dominated German financial markets during April. The bond market—which had stabilized after the initial selling wave which followed the withholding tax plan announcement on interest payments to non-residents--remained under pressure throughout the month. Bond yields continued to rise. A representative Bundesbahn (Railway! bond which yielded 5.84 per cent on March 20 just prior to the announcement was at 6.05 per cent on April 3 and at 6.14 per cent on April 30. (See Table 1.) During the month,— the Bundesbank is reported on occasion to have taken steps to support prices on Federal Government issues. For example, the Frankfurter Allgemeine Zeitung reported that on May 5 "public issues were kept at 99 because of support purchases by the Bundesbank. But the Bank had to take up substantial amounts." Table 1. Germany; Selected Financial Indicators, March-April 1964 6_ Bond yields ; Rcilroec1 bond (1958-82) Stock price index: Industrials (Dec. 31, 1958=100) Exchange rates: Spot DM (U.S. cents) Forward (% per annum) 5. 80 204.49 25.167 +0.8 Foreign exchange reserves: Bundesbank (changes in period, millions U.S. $) +45 March 20 27 3_ 10 April 17 5.84 6.07 6.05 6.08 6.11 209.22 207.41 210.62 206.29 205. 91 25.161 +0.9 -10 25.160 +0.9 -127 25.162 +0.9 25.161 +0.7 -5 OFFICIAL USE ONLY (Decontrolled after six months) 24 30 n. a. 6. 14 n. f . 202. 81 25.155 25.168 40.7 +0.5 25.161 +6.5 -139 -27 +25 OFFICIAL USE ONLY 9 - 2 - Unsettled conditions in the bond market caused the Capital Market Committee to postpone a number of issues for the time being. Discussions in market circles speculate that either further increases in the long-term interest rate are in the offing or, alternatively5 that a rationing system may be introduced. In any case, recent developments have effectively ended for the present any further official efforts to accustom the market to a 5.5 per cent coupon. The authorities have announced that a new Federal loan issue of DM 300 million (expected to have been offered in early April) will be opened on May 20 with a 6 per cent coupon; but the issue price has not yet been determined because of market conditions. During April; the uneasiness which permeated the bond market also spread to the stock market. Despite continued favorable business news, the F.A. Z. index of industrial stock prices declined from 210.6 on April 3 to 2CT2.8 on April 30. Apparently investors decided to adopt a "wait and see" attitude in the light of continuing official statements about stabilization measures to be adopted soon. A statement by Chancellor Erhard at the opening of the Hanover Trade Fair ruled out various proposals for drastic action (including modest inflation; revaluation of the D-mark; impeding of exports; and "manipulation of turnover taxes as they affect foreign trade"). Such official statements have relieved some of the fears of the business community, but the continuing weakness of stock prices suggests that a general sense of uneasiness apparently remains in business circles. The recent official actions, for the time being at least, have helped to halt the continuing reserve accruals of the Bundesbank. Since mid-March official reserves have been declining and at end-April were $238 million below the endFebruary figure. Both heavy official payments abroad for purchases of military equipment and for restitution payments and Bundesbank sales of dollars to the commercial banks for investment in U.S. Treasury bills (under the special swap arrangement) have contributed to the down trend in official reserves. In addition, with the higher minimum reserve requirements against foreign deposits, the commercial banks are reported to have engaged in heavy money exports in early April since foreign assets can be offset against deposits in calculating required reserves. After mid-April, the money market tightened considerably. Both technical factors (the banks may have underestimated requirements for the mid-April tax date) and the stoppage of capital inflows contributed to this change in market conditions. Thff drying up of capital inflows should help to reduce the balance of payments surplus for April, However, the current-account surplus continues to grow: the surplus for the first quarter was DM 2.1 billion compared with a total of DM 4.6 billion for the entire year of 1963. (See Table 7.) The over-all balance of payments surplus for the quarter was DM 1.3 billion compared with DM 3.2 billion for 196?. 1/ With a diminished long-term capital inflow, however, the surplus for March was much below the surpluses for January and February. In the foreign-exchange market, the D-mark was quoted at 25.161 U.S. cents on May 1 or about 27 basis points below the upper level at which the Bundesbank is committed to intervene. On March 27, the rate had been 25.160 cents but the spot rate reached a high of 25.168 cents on April 24. (See Table 6.) 1/ Full year of 1963, ~ OFFICIAL USE ONLY OFFICIAL USE ONLY - 3 - Securities markets weaken. Both the bond and stock markets weakened throughout April as a result of uncertainties about governmental action. The bond market stabilized fairly quickly after the heavy selling wave which materialized when the 25 per cent withholding tax proposal was announced on March 25. Throughout April bonds were under slight selling pressure,.both from foreign and domestic sources. Yields advanced further during the month 1 the yield on the 1958-83 Railroad bond, for example, rose by 30 basis points--to 6.14 per cent-~between mid-March and the end of April. (See Table 1.) Issues of the Federal Government particularly were under pressure. By contrast, bonds of foreign issuers in the German market, which are exempted from the withholding tax, were in strong demand. A new DM 40 million issue of the City of Oslo was placed easily as were placements, totalling DM 400 million, of convertible bonds by two major German firms. The convertible feature was rather an innovation in the German market, (particularly because it favors early conversion) and proved attractive to both domestic and foreign investors. The fact that the Capital Market Committee allowed a DM 80 million municipal (6 per cent) loan and several small industrial issues to come on the market in April suggests that hesitancy at the moment centers around Federal issues. Thus, a DM 400 million Federal loan, which had been announced for early April, was postponed. The issue has now been scaled down to DM 300 million and will be offered on May 20 at a 6 per cent coupon. The issue price has not been announced as yet; the authorities are waiting to see how market conditions are developing. For the first five days of sale, subscription will be restricted to domestic customers. The financial press has observed that the absence of stronger measures, or admonishments, to exclude foreigners indicates that the authorities continue to depend on foreign participation in financing the Government's capital requirements. either system as the DM 1.3 There is speculation in financial circles that the authorities will have to allow a rise in interest rates or will have to adopt a rationing because of current market conditions. For the time being, placements such extraordinarily high volume of DM 3 billion in January or the more normal billion in February appear to belong to the past. (See Table 2.) The announcement on April 29 that the Cabinet had adopted the draft law governing the imposition of the withholding tax and the abolition of the 2.5 per cent securities tax on new foreign and domestic industrial issues, may help to steady the market. The draft law provides that the credit institutions shall withhold the tax. Residents will have to bring proof of residency and ownership if they hold the certificates themselves; where the bonds are lodged with banks, these institutions are deemed able tox determine ownership for purposes of the tax. Refunds of the tax, under double taxation treaties, will be made, by the internal revenue authorities upon certification by the foreign tax authorities that the foreign owner is taxed in his home country. OFFICIAL USE ONLY - 4 - OFFICIAL USE ONLY The stock market momentarily reached a new high for the year in early April, partly because there was some shifting of funds out of bonds into stocks after the announcement of the withholding tax proposal. (See Table 3.) Table 2. Germany; Gross Placements in Security Markets 1/ (millions of DM, month or monthly average) > 1962 III O c c a s i o n a l " borrowers bonds: Industrial Public authorities Foreign issuers Other bonds 2/ Total Mortgage and communal bonds Total gross bond placements 3/ Gross share placements Total security placements at issue value 1/ _2/ JV IV 113 358 60 187 I II 1963 HI 88 451 166 328 153 IV Dec. 1964 Feb. Jan. 180 117 424 20 172 326 49 59 190 60 872 100 472 100 264 275 -— —- 154 57 143 489 32 259 625 304 923 692 674 733 624 1,504 638 532 480 652 5 78 575 672 731 1,457 636 1,157 784 1,575 1,270 1,249 1,405 1,355 2,961 1,275 172 170 155 51 117 116 110 288 67 1,329 954 1,730 1,321 1,366 1,521 1,465 3,249 1,341 -- -- Market value. Mostly bonds of specialized credit institutions. Includes medium-term notes (Kassenobligationen). Source: Deutsche Bundesbank Monthly Report, Table V, 6. Stock prices have been drifting lower continually since announcement of the withholding tax proposal, despite further favorable business news. Even Chancellor Erhard 1 s announcement that the much-referred-to "stabilization package" will under no circumstances include such drastic measures as revaluation or the damping down of exports could not dispel the general uneasiness. By May 5, the F.A.Z. industrial stock index had fallen to 200.43, its lowest point since late February. (See Table 3.) Two large industrial issues amounting to nearly DM 200 million, which" had been switched from the bond to the stock market because of — the unsettled conditions in the former, had a further dampening effect upon the market. OFFICIAL USE ONLY OFFICIAL USE ONLY Table 3. All time high: 1963 high: 1963 low: Germany: Stock Index, October 1963-May 1964 (December 31, 1958=100) Aug. 31, 1960 Sept. 9 Feb. 26 1963 Oct. 31 Nov. 29 Dec. 31 186.05 180.80 187. 71 1964 Jan. 10 31 Feb. 7 28 193.73 198.47 198.48 202.06 Source: - 5 - 264.60 194.81 151.54 .1964 1964 high: low: Mar. 13 26 Apr, 3 10 17 24 30 5 May Apr; 6 Jan. 2 211.02 189.08 % 209.10 20 7.41 210.62 206. 29 205.91 204.82 202.81 / 200.43 Frankfurter Allgemeine Zeitung. Money market tightens. The commercial banks are reported to have exported substantial amounts of money market assets during early April when seasonal factors eased money market conditions. These exports were in large measure in response to the measures taken by the authorities in March. The banks are reported to have availed themselves substantially of the preferential swap possibilities extended by the Bundesbank for purposes of investment in U.S. Treasury bills; they also have placed funds in the Euro-dollar market. These movements were encouraged by the increase to 30 per cent in reserve requirements against foreign deposits. Because foreign money market assets can be offset against foreign deposit liabilities in calculating reserve requirements, money exports up to the extent of foreign deposit liabilities become profitable (unless domestic earning possibilities are sufficiently higher than those abroad to offset the holding •of 30 per cent idle reserve balances). At mid-month the money market tightened as banks were reported to have underestimated the requirements for the mid-April tax date. Call money rates in Frankfurt rose to close to 4 per cent by the end of the month, which was as high as the rates produced by the seasonal tightness at the end of March. (See Table 4.) The April liquidity stringency was in part also attributed to the stoppage of capital inflows. Official reserves decline. Official foreign exchange reserves started to decline in mid-March and, except for a small increase, at the end of April, have been decreasing since. (See Tables 1 and 5.) The March decline of $92 million reflected the Italian drawing of DM at the IMF, official payments abroad for military purposes and, to a lesser extent, the re-activation of swap agreements with the commercial banks. In April official reserves are estimated to have declined by $14j6 million. Official payments abroad--for restitution and military purposes--again played a significant role, and sales of dollars to the commercial banks for investment in U.S. Treasury bills under the swap agreement were more important than in the preceding month. In addition, capital inflows appeared to have stopped so that the Bundesbank was no longer required to take foreign exchange from the market. OFFICIAL USE ONLY . OFFICIAL USE ONLY - 6 - Germany: Money Market Rates in Frankfurt, January-March, 1964 a/ (in per cent per annum) Day-to-day money Three-month loans 2-1/2 - 2-7/8 2-1/8 - 2-1/2 2-1/4 - 3-1/4 2-1/8 - 3 3-1/4 3-1/4 3-1/4 3-1/4 February 1- 7 8-15 16-23 24-29 2-5/8 2-5/8 3 2-1/4 - 3 - 3 - 3-1/8 - 3-1/8 3-1/4 - 3-3/8 3-1/4 - 3-3/8 3-1/4 - 3-3/8 3-3/8 March 2-7/8 2-3/4 3 3-3/4 - 3-1/8 - 3-1/4 - 3-7/8 - 4 3-3/8 3-3/8 - 3-5/8 3-3/8 - 3-1/2 3-1/2 January 1- 7 8-15 16-23 24-31 1- 7 8-15 16-23 24-31 - 3-1/2 3-3/8 3-3/8 3-3/8 a/ Highest and lowest rates quoted each week by Frankfurt banks. Source: Deutsche Bundesbank. Table 5. Germany: Changes in Reserve Position 1963-March 1964 (in millions of U.S. dollars) Jan. Dec. 1963 Bundesbank gold and foreign exchange Gold Foreign exchange Total 1963 I . 164 491 655 69 -70 - 1 B. Drawing rights on IMF 35 2 C. Commercial banks foreign exchange 73 223 763 224 Total A through C 1964 II III IV 5 248 253 8 163 171 82 150 232 5 1 -87 189 -86 -194 104 -196 - 92 25 8 19 90 a/ 219 -50 67 a/ 133 163 65 J/ -- 56 N ^ 62 -268 309 258 -28 Jan. Feb. Mar. Apr. 1/ 10 7 -253 -146 1i Estimated. a/ Not available. Source: IMF, International Financial Statistics; Bundesbank, Monthly Report. OFFICIAL USE ONLY OFFICIAL USE ONLY Demand for D-mark eases. With reduced foreign inflows and the exports of short-term funds, demand for the D-mark decreased somewhat in the foreign exchange market during April. (See Table 6.) Quotations for the D-mark eased from 25.168 U.S. cents in mid-March to 25.155 cents in mid-April. By May first, the DM was quoted at 25.161 cents, which still was only 27 basis points below the upper level of 25.188 cents at which the Bundesbank is committed to intervene. At the same time, the large forward premium on the DM also narrowed: it declined from 0.9 per cent in mid-March to 0.5 per cent at the beginning of May, suggesting an easing of speculative factors. At the current level of 0.5 per cent, the exchange market rates equal the Bundesbank's special swap rate for investment in U.S. Treasury bills. Table 6. Germany: Exchange Rate in U.S. Cents per DM and Three Months Forward Rates in per cent per annum Par value Upper limit Lower limit 1963 Oct. 31 Nov. 29 Dec. 27 Spot 1/ 25.146 25.161 25.156 Forward 2/ -0.2 -0.2 +0.0 1964 Jan. 31 Feb. 7 21 25.166 25.169 25.176 + 0. 8 +0.9 + 0.9 25.000 25.188 24.875 1964 . 1/ 2/ 6 20 27 Apr. 3 10 17 24 May 1 Mar. Spot 1/ 25.167 25.161 25.160 25.162 25.161 25.155 25.168 25.161 Forward + 0.8 + 0.9 +0.9 +0.9 +0.7 -H). 7 +0.5 40.5 Certified noon buying rate in New York. Closing market rate in Frankfurt. Source: Federal Reserve Board. Large first quarter balance of payments surplus. Current estimates are that the April balance of payments surplus should be much diminished, if • there is a surplus at all, because of the stoppage of capital inflows. The first quarter surplus was a hefty DM 1.3 billion, but the March surplus already was much below the surpluses for January and February. (See Table 7.) The March results reflected the slowdown in the long-term capital inflow^ the current account surplus remaining very high. OFFICIAL USE ONLY OFFICIAL USE ONLY Table 7. Germany: Balance of Payments 1963-March 1964 (in millions of DM) I 1. GOODS & SERVICES Trade balance Services Total 2. OFFICIAL PAYMENTS Donations Long-term capital Short-term capital Total 3. PRIVATE CAPITAL Securities transactions Foreign purchases 1/ German purchases (increase-) 2/ Other long-term Short-term 3/ Errors and omissions Total SURPLUS OR DEFICIT (-) _a/ 1/ Zf _3/ II 1963 III 1964 Feb. IV _ I a/ z22: 877 688 62 1138 -435 1200 -841 2860 - 74 2369 -256 750 703 "359 2786 2133 -1016 96 116 -976 -915 -251 s - 86 592 270 -693 -434 -1296 -815 -178 -373 -996 -409 -2423 -1366 916 Mar. 815 -100 715 -239 -253 - 75 - 44 -227 - 61 -541 -236 700 731 773 -160 203 78 247 - 44 285 278 246 -100 150 205 178 -167 > 359 154J 454 -589 817 -1509 139 33 85 60 -265 -50 1086 1496 1206 - 413 587 284 -282 822 1242 1156 - 51 1334 620 197 == ~ 655^ Preliminary. Foreign purchases of German securities. German purchases of foreign securities. Includes commercial bank capital other than foreign exchange assets. Source: Basic data from Bundesbank and International Financial Statistics rearranged by author. Foreign trade continues to expand. A continued large favorable trade balance is indicated for Germany in view of the -.strong inflow of foreign orders. This again was apparent at the recent Hanover Trade Fair where foreigners placed large orders. The decline in the seasonally adjusted trade figures between February and March, was mainly attributed to the fact that the seasonal adjustment does not properly take account of the Easter holiday. (See Table 8.) OFFICIAL USE ONLY OFFICIAL USE ONLY Table 8, Germany: Merchandise Trade 1962 - March 1964 (seasonally adjusted monthly averages, in billions of DM) Exports, f. o. b. Imports, c. i. f. Industrial goods Imports Trade Balance 1962 Year 4.38 4.15 2.95 . 23 1963 Year 4.81 4.38 3.26 .43 I 4.40 4.15 3.07 .25 II 4.84 4.43 3.34 .41 III 4. 99 4. 66 3.44 . 33 .74 5.01 4.27 3.17 5,08 4,33 3.22 .75 ; Dec. 4.80 3.90 2.87 .90 Jan. 5.40 4.61 3.38 .79 3,31 1. 23 , iv N Nov. 1-964 a/ b/ Feb. 5. 51 4.28 Mar.b/ 4,90 4.45 Not available. Preliminary. Source: Bundesbank, Monthly Report, Europe and British Commonwealth Section, OFFICIAL USE ONLY ^ .45 Table 9 . Germany: Selected Money Market Yields and. Exchange Rates (per cent per annum) 3-mo. Euro3«mo» inter- Spread dollar deposits bank loans in favor London Frankfurt London 1963-Aug. Sept; Oct: Nov* Dec* 1961+-= Jan f ' UsOO 30 27 1,09 25 L:12 29 L,12 27 L:2$ 10 Wo 17 L,00 2U LcOO •31 L.12 Feb, IwOO 7 Ik L.oo 21 I1..06 28 L,12 March 6 L,3i 13 a,2$ 20 L.2$ 27 kc25 A p r i l 3 . L,2^ 10 u,2$ 17 L,2$ 2L L,19 Table Ivc 3,7$ 3,75 5,25 U088 3.31 3,31 3,31 3.31 3.31 3*31 3,31 3*38 3O38 3.$0 3,Wi 3,SO n=a, n 5 a, nt a n,a.. +0,2$ +0r3k .1,13 =0.82 =0,63 TO ,69 +0o69 +0^69 +0.81 +0,69 X)o69 ^ +0,75 +0,74 <0,93 -0,7$ +0,81 X),7$ n,a. n=a : n,ar n ?a: 3"HOo U.S. $ into Marks Comm. Market bank +0,7$ +0,7$ + 0;7$ +0?75 +0.7$ +0,7$ 40,7$ +0.7$ +O.TS +0.7$ v0o7$ +0,7$ +0.7$ +0,7$ +0,$0 +0,50 40,50 *0:$0 to $0 0 :$0 +0.2 =0,2 -0,2 0,0 +0,8 +0,6 +0,8 +0.8 +0.9 +0,9 +0,9 +1,0 +0.8 "-0.8 -0,9 +0.9 +0.8 +0,8 +0.T <0?5 3-moo Treas . bills U.K. Ger. U.S. 3*62 3e$b 3.61 3 061 3.61 3.61 3,61 3.61 3.61 3.61 3o6U 3=6li L.16 U 01.6 L,l6 lul6 L.16 Uel6 L.16 L'=l6 LJ.6 2.63 2.63 2,63 2.63 2.63 2,63 2,63 2,63 2.63 2.63 2.63 2.63 2.63 2.63 2.63 2,63 2.63 2.63 2.63 2.63 2,63 3.38 3.3U 3.1*3 3.U7 3=50 3.52 3-52 3.U9 3-W 3.U 9 3-50 3.51 3-56 3-52 3.53 3.52 3.52 3.50 3.UU 3.U5 3,li3 Germany, s Selected Loang Deposit and Security Rates (per cent per 'annum')'" Bond yields Public Railway author19$8-83 ities 6:2 6=iL 2.,75 J 962-November 3,$0 7 50 6,1 6,08 2 ,75 December 3.$0 7\$0 6,0 2,,75 5,99 1963-January 3?$0 7,50 6,0 $c99 2 ,7$ February 3,$0 TrSO' 6c0 5=99 2.-75 March 3,$0 7,$0 6,0 2,:7b $.97 April 7,$0 3,$0 6d 6:00 2 •75 May 3,$0. 7:$0 6,1 6,03 2 >7$ June 3-$0 7,$0 6,1 6,10 2 f 7$ July 7$0 3-$0 6 1 6,09 2J ;5 3 = $0 August 7/$0 6,1 6,09 2 -75 - September 3.$0 7:50 61 - 6,07 2 October 3 $0 7,$0 6:0 6rOL 2. 7• November 3 50 7 50 6 rO 2, 75 6.03 December 3;$0 7;$0 2:,75 5-9 $;93 I96L-January 7 $0 3?50 $-9 5?82 2 7$ February 3:$0 7^0 v 6^07 2. ,i!arch 3 50 7^50 Digitized fora/FRASER Approved credits on current account. 6-12 mo, deposits Comm. bank . loans y Savings Tiirie Share Yields 34 3rLL 3,58 3,7$ 3,63 3r$6 3-19 3,26 3:20 3,09 3^08 3.17 3-26 3,16 3,01 2^93 Yield F?aP 2,9 2,7 2eU 2,2 2,h 2 0I4. 2:9 2,8 2,9 3.0 3,0 2.9 2.7 2,8 2,9 3»0 INTERNATIONAL 3-MONTH EURO Wednesday figures MONEY DOLLAR MARKET DEPOSIT YIELDS FOR U.S. VS. CERTIFICATE DOLLAR OF INVESTORS DEPOSIT Per c e n t YIELDS DIFFERENTIAL: U.S. N E W YQRK Friday l l g e r e i OFFER RATES ON EURO-DOLLAR CERTIFICATE SELECTED TREASURY COMMERCIAL OF 3-MONTH BILLS- F u l l y OVER DEPOSIT INVESTMENTS Hedged PAPER.Fully Hedged ' * ni*K rUKVflJDC i A.!, r x — CANADIAN FINANCE COMPANY T> kr r^ > f> i -\n INTEREST A R B I T R A G E , 3-MONTH UNITED STATES / CANADA T R E A S U R Y BILL R A T E S : UNITED S T A T E S 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 S P R E A D IN F A V O I O f C A N A D A + o r RATE D I F F E R E N T I A L WITH FORWARD iXCHANGE N I T I N C E N T I V E IN F A V O R OF C A N A D A + COVER INTEREST A R B I T R A G E , NEW YORK/LONDON Friday figures 3-MONTH Per c e n t p e r a n n u m TREASURY BILL R A T E S U . K . LOCAL A U T H O R I T Y D E P O S I T S RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING SPREAD IN f A V O I Of lOMtOH — V - x RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER E A V O R OE N E W Y O R K 1961 1962 1963 . 1964 INTEREST A R B I T R A G E FOR G E R M A N COMMERCIAL B A N K S 3-MONTH EURO TREASURY BILLS, I N T E R B A N K DOLLAR DEPOSIT RATES - LENDING j RATE A N D [ 1 .tUe0.D0UAB_L0HD01. GERMAN TREASURY D L L S i : Ls... r™ i RATE D I F F E R E N T I A L A N D i FORWARD ~~i r DEUTSCHE ~ MARK S P R E A D I N F A V O R OF F R A N K F U R T : F O R W A R D RATE D I S C O U N T V ) RATE D I F F E R E N T I A L WITH NET I N C E N T I V E . " j FORWARD EXCHANGE INTERlANKlOAN RATI/ v £-.\ J COVER j IN F A V O R OF F R A N K F U R T ( + ) V A \-/V\A^/V 1964 ' SHORT-TERM INTEREST R A T E S * Per cent h r~\ i 1 \ r ' * | L VI % ^ h x r x ^ V w ,5 EOIO-DOllAI - 1 ON DON n * M f h 3 1 f' 2 GEIMANV -xLAl i 1 1 1 Il I i 1 i 1 I 1 li 1 I 1I 1l 1i 1 1 11 11 11 11 11 II I 1 I 11 III I 1 11 I AJ^L. J A FAN f\. i h ! V " ! v / S IDA K c£c: u. s. i Z SWITZtlUND v X A v V ^ 3 fv 1 II I960 II 1 1 1 ' 1 II ' '1 1 II 1 1 ! 1 1961 3 monlh Ireoiury bill rolei lor oil counlriei exccpt Japan | ond Switzerland (3 monlh depoiil role) _ _ _ _ _ "^";3 monlh rale lor U. S dollar depotili in London M II- II M1 1962 II 1 II 1 K > 1 1 1 1 1 1 11 11 II 1963 (Average role on bonk loom and diiteunlsl 1 1164 L O N G - T E R M B O N D YIELDS /V 1164 INDUSTRIAL STOCK INDICES 195 8 = 100 r y ^ V / 100 ' 350 200 X" 'New series Swiss Bank Corporation industrial slock index * /jopan: index ol 225 induilrial and o I h e r ilocli traded on I he Tokyo exchange SPOT EXCHANGE RATES - M A J O R CURRENCIES AGAINST U.S. DOLLAR p., t.n» Above pgr vTf Above por FRENCH FRANC GUIlDER 3-MONTH FORWARD EXCHANGE RATI f r id o y l i p ; AGAINST AGAINST U.S. DOLLARS POUND STERLING - LONDON PREMIUM +- AGAINST POUND STERLING - LONDON PREMIUM + L FRENCH FRANC > • udvuuiii
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