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V 4 H. i3 No. 352 V »OAF*D OF a OVER NOUS «~v0 " i May 29, 1968. CAPITAL MARKET# DEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H. 13 Chart Series, 1*968 Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart 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: Fraikfurt/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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLAB FUNDS 3-MONTH DOLLAR DEPOSIT RATES WedneiAy ligurei ! . | 1 i-- . • ----- - U.S. CERTIFICATE OF DEPOSIT UV X;uV ! 1 CALL i 1 I i EURO-DOLLAR \yv i EURO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT 1 1 : 1 1 . ; ! , ; ; . 1 1 DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE CALL E U R O - I I L L A R DEPOSITS FEDERAL F U N I S E U R I - M l l A R 9VER FEDERAL F V i t S •sr. mm Sept. Dec. Mar. IMS Jew. 1166 Sept lee. •** Ji«. 1167 Sept lee. •sc. Ih. ### Sept. 1st. V L O N D O N : YIELDS EURO-DOLLAR Fridoy figures M J FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DEPOSIT S D RATES M 1965 J 1966 S D M J 1967 S D M J ' 1968 S D LONDON: HIRE YIELDS PURCHASE FOR AND U.S. DOLLAR LOCAL INVESTORS AUTHORITY DEPOSIT ON 3-MONTH RATES FUNDS (covered) EURO-DOLLAR DEPOSIT, HIRE PURCHASE FAVOR HIRE PURCHASE FAVOR E U R O D O L L A R DIFFERENTIAL EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR DIFFERENTIAL 1965 1967 1968 I ARBITRAGE: INTEREST FRANKFURT INTERBANK FRANKFURT/LONDON, LOAN RATE VS. ZURICH/LONDON LONDON EURO-DOLL,* RATE (COVERED) IN TERMS OF DM EURODOLLAR INTERBANK LOAN RATE FAVOR F R A N K F U R T DIFFERENTIAL FAVOR E U R O - D O L L A R ZURICH DEPOSIT RATE V$. LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS EURO-DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL FAVOR E U R O D O L L A R PRICE OF GOLD IN LONDON 45.0 35.5 43.0 35.4 41.0 35.3 39.0 35 2 37.0 35.1 35.0 35.0 1965 Morkel closed March 1966 1967 1968 INTKRST A R i l T R A O l , UNITKD S T A T U / C A W A B A Friday figure! 3-MONTH TREASURY BILL > Per cent per annum RATES CAR. FIR. CO. PAPER UNITED STATES CARARA BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR SPREAD IR FAVRR OF CARADA FORWARD RATE DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR C A N A D A , TREASURY RILLS PRIME FIRASCC PAPER A M # U.S. 1915 1111 1007 100# A INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK 1965 1966 1967 1968 iINTEREST RATE ARBITRAGE, DIFFERENTIAL NEW AND YORK/LONDON 3-MONTH FORWARD STERLING SPREAD |N FAVOR OF LONDON PREMIUM DISCOUNT FORWARD RATE v T 1 \ 2 IN FAVOR OF IN FAVOR OF LONDON NEW YORK RATE D I F F E R E N T I A L W I T H F O R W A R D E X C H A N G E C O V E R (NET I N C E N T I V E ) i i i i ! i i i i i • i 1 i i i i i i i i i i i i i i i i i i i i i i i ; i M J S D M J S D M J S D 1965 1966 1967 1968 0\ SHORT-TKRM INTIKBST K A T I t * E U » 0 > 0 1 L A » - LONDON t 7U.K. U.S. 9 JAPAN 6CRMANY IMS 1115 1IS4 maa*k Iraaivry kill ralat let *N ceewfries •><•*• Jape* (Avera§a rate am Wa»k •wiMerleed (3-mealli 3-menlh rata far U i Jaltar fele) end Cermeey in leedee. (tawktuk L h i ten) 1117 mmd Jiic»»«n) 1111 1 \ ° LONG-TERM BOND YIELDS i|| Weekly figures Per cent per onn NETHERLANDS CANADA U.S. SWITZERLAND 9 GERMANY U.K. EURO-DOLLAR BONDS U . S . E U R O - D O L L A R BONDS U . S . CORP. A a a B O N D S 1964 # ## #$# #* $# Average of New series New series New series 1965 1966 yields for four foreign government dollar bonds quoted in London for Germany starts 7-9-65 for Switzerland starts 3 3-67 for Netherlands starts 1-7 66 1967 V \ SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC - V " G E R M A N M A R K - 4- U.K. STERLING BELGIAN FRANC DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR I T A L I A N LIRA — JAPANESE YEN V 1965 * Devaluation of ih. pound sterling from $2 80 to $2 40. 1966 1967 1968 \» 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS — N E W YORK GERMAN MARK AC SWISS FRANC POUND STERLING OISCOUNT- PREMIUM+ DUTCH GUILDER FRENCH FRANC C A N A D I A N DOLLAR DISCOUNT- AGAINST POUND STERLING — L O N D O N PREMIUM* GERMAN MARK j M ^ S W I S S FRANC I n U.S. DOLLAR DISCOUNT 1965 1967 1966 1968 I N D U S T R I A L S T O C K INDICES 360 320 280 240 SWITZERLAND U.S. GERMANY 160 U.K. 120 360 320 280 240 200 tf.S. 111 126 1165 • $$ Swiss Cer»#retieii industrial sleek t*d*m j*#em imWern of 223 mdvstriel end ether sl#c 111! 1M7 1HI H. 13 No. 352 May 29, 1968. II.a Latest Figures Plotted in H. 13 Chart Series, 1968 (all figures per cent per annum) Chart 1 (Wednesday, Upper Panels May 22 Euro-$ deposit 7.00 U.S. cartif. of deposit 6.23 Lower Panels (Wednesday, Mav 22 Chart 4 (Friday, Mav 24 ^ Treasury bills : Canada U.S. ) 6. 76 5.70 Spread favor Canada +1. 06 Call Euro-$ deposit 6.44 Forward Canadian dollar -1.38 Federal Funds 5.95 Net incentive (Canada +) -0. 32 7.12 Canadian Finance paper Chart 2 (Friday, May 24 ^ ^ Chart 5 (Friday, May 24 ) Upper Panel - Euro-$ deposits: Call 30-day 6.44 ?_nn 90-day 180-day Middle Panel Euro-$ deposit 7. 03 U.S. 5.70 Spread favor U.K. 3.26 Hire-purchase paper Lower Panel Treasury bills: U.K. 7.12 7.12 (May 17) U.K. local authority deposit 6.91 Interbank Loan (mid-point) 3.71 Euro-$ deposits 8.50 Chart 6 (Friday, May 24 (May 17) Local-authority deposit 3.07 (May 17) Euro-$ deposit 6.91 (May 17) Chart 3 I. Upper panel (Period: May 16 - 23 ) +1.33 Treasury bills : U.S. 5.70 U.K. 7.03 Canada 6. 76 Interbank loan rate (German) ( May 16 - 23 ) 3.71 Euro-$ deposit (London) 7.12 (average) 3.94 Zurich 3-month deposit Lower Panel (date April 15 ) (Date: Zurich 3-month deposit April 15 ) 2.75 ) 7.49 2.75 Japan Composite rate Euro-$ rate (covered) 4.78 (Date: II. Price of gold (Friday, May 24 41.88 ) March 29 ) H. 13 No. 352 May 29, 1968. II. b Chart 7 Chart 9 U.S. Gov't.(Wed., May 22 ) 5.53 U.K. War Loan (Thurs.,May 23 ) 7.31 Against U.S. dollars; German Fed. (Fri., 6.37 Swiss francs +2.06 Dutch Glds. +1.67 German marks +3.37 Fr. Francs +0.41 £ Sterling Can. $ -1.38 May 17 Swiss Confed. (Fri., Ma y 10 ) ) Canadian Gov't. (Wed., Ma y 2 2 ) 4.53 7.08 Netherlands Gov't. (Friday, (Friday, May 24 -6.10 ) Against pound sterling; May 3 ) 6.45 Swiss francs +7.19 U.S. dollars +5.36 Euro-$ bonds (Fri., May 24 ) 7.67 S. Euro-bonds ( Apjril 30 ^ 7.25 U.S. Corporate Aaa ( April 30) 6.21 Ger. marks +9.70 Chart 10 Chart 8 (Friday, May 24 ) U. S. ( Japan ( May 24 May 24 U.K. (Fri., May 24 ) ) 257. 3 ) 258.7 Swiss francs +1.27 Dutch Glds. +0.07 German marks +0.56 Can. $ +0.30 Switzerland (Fri.. May 24 U.K. £ Ster. -0. 66 It. Lire +0. 36 Germany ( April 26 -0. 57 Canada ( Belgian francs +0. 50 Jap. Yens French francs May 17 215-1 ) ) ) -0.57 For descriptions and sources of data, see Special Supplement No. 343-S dated March 27, 1968. - 333.0 . 254.0 199.9
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