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DIVISION OF INTERNATIONAL FINANCE 13 ' . 293 h B O A R D OF ( O V I R N O M April 5, 1967. '" I CAPITAL MARKET! DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1967 Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart "'art Chart Chart Chart Chart 1 - New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds 2 - London: Yields for U.S. Dollar Investors on 3-month Funds 3 - Interest Arbitrage: Frankfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-term Bond Yields 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. OFFICIAL USE ONLY (Decontrolled after six months) NEW Y O R K , L O N D O N , M O N T R E A L : YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DOLLAR. DEPOSIT RATES: NEW Y O R K - L O N D O N EURO-DOLLAR DEPOSIT — U . S . C E R T I F I C A T E OF D E P O S I T EURO-DOLLAR OVER U . S . C E R T I F I C A T E OF D E P O S I T F I N A N C E C O . PAPER RATES ( c o v e r e d ) : Q U O T E D I N NEW YORK Friday figures U.K. HIRE PURCHASE CANADIAN FINANCE COMPANY U.S. FINANCE COMPANY Mar. Jun. 1965 Sept. Dec. Mar. J un. 1966 Sept. Dec. Mar. 1967 Jun. LONDON: YIELDS EURO-DOLLAR FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3 - M O N T H 30 180 90 PURCHASE AND LOCAL DAY CALL AUTHORITY HIRE DEPOSIT RATES (covered) PURCHASE EURO-DOLLAR , DAY DAY I HIRE FUNDS RATES DEPOSIT DIFFERENTIAL FAVOR FAVOR EURO-DOLLAR AUTHORITY DIFFERENTIAL PURCHASE EURO-DOLLAR DEPOSIT LOCAL 1965 HIRE DEPOSIT FAVOR 1966 1967 LOCAL AUTHORITY 1 1 v X \ 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 INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR INTERBANK RATE ( C O V E R E D ) LOAN RATE : EURO-DOLLAR 2 DIFFERENTIAL FAVOR FRANKFURT FAVOR EURO-DOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE ( C O V E R E D ) EURO-DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH i l PRICE OF G O L D I N L O N D O N 1965 US dollar equivalent per fine ounce 1966 1967 < INTEREST ARBITRAGE, U N I T E D S T A T E S / C A N A D A 3 - M O N T H TREASURY BILL RATES CAN. FIN. CO. PAPER CANADA UNITED STATES BILL RATE DIFFERENTIAL AND FORWARD C A N A D I A N DOLLAR ; PREMIUM I SPREAD IN FAVOR OF CANADA 1 1 FORWARD RATE 3 - M O N T H COVERED RATE DIFFERENTIALS (NET INCENTIVES) PRIME FINANCE PAPER TREASURY B I L L S S 1964 1965 D M J 1966 s D M S 1967 D 1 V) INTEREST ! 3-MONTH ARBITRAGE, TREASURY NEW BILL YORK/LONDON RATES ! U.K. LOCAL AUTHORITY DEPOSITS LONDON W NEW RATE DIFFERENTIAL AND 3-MONTH YORK FORWARD SPREAD STERLING IN FORWARD RATE DIFFERENTIAL WITH FORWARD EXCHANGE F A V O R OF L O N D O N DISCOUNT RATE •v\ COVER (NET INCENTIVE) | IN F A V O R OF L O N D O N IN 1964 1965 FAVOR OF N E W YORK 1966 1967 j SHORT-TERM INTEREST RATES * : i 8 EURO-DOLLAR - LONDON SWITZERLAND 2 1 9 JAPAN GERMANY CANADA U.S. 1962 1963 1964 1965 1966 <& L O N G - T E R M B O N D YIELDS | ' — 1 7 NETHERLANDS CANADA SWITZERLAND 9 GERMANY EURO-DOLLAR BONDS 1963 1965 1966 1967 SPOT E X C H A N G E RATES - M A J O R CURRENCIES A G A I N S T U.S. DOLLAR (f S W I SS F R A N C . I - - / ' — ^ ; " I ! \ yv V / r T GERIMAN M A R K I / \ S \ sJ" j"' v/ A \ _ / rf 1 U.K. STERLING 1 1 1 I FR ENCH F R A N I C V V ^ B E L G I A N FRAFII C / - \ \ \ - DUITCH G U I L D ! :R I C A N A D I A N DOLLAR I T A L I A N LIRA J A P A N E S E YEN S M 1965 D M J 1966 s D M 1967 J 3 - M O N T H F O R W A R D E X C H A N G E RATES AGAINST Friday figures U.S. D O L L A R S — N E W YORK j PREMIUM* GERMAN MARK i A " , SWISS FRANC ! DISCOUNT- | I PREMIUM + : , : DUTCH GUILDER j / V y I } -r-xH , j FRENCH FRANC " R O V CANADIAN DOLLAR DISCOUNT AGAINST Friday figure! POUND STERLING — L O N D O N M SWISS FRANC A GERMAN MARK /! U.S. DOLLAR 1964 \\ I N D U S T R I A L STOCK I N D I C E S • 360 320 SWITZERLAND GERMANY i j 120 ] 360 320 280 JAPAN 240 200 CANADA 160 i 120 1964 1965 1966 1967 & H. 13 No. 293 II Latest Figures Plotted in H.13 Chart Series, 1967 (all figures per cent per annum) Chart 1 (Wednesday, Upper Panel March 29 Euro-$ deposit (Friday, M a r c h Chart 5 (Friday,March 31 ) Treasury bills: 5.38 U.S. certif. of deposit Lower Panel ) ) 4.88 5. 60 5.49 U.S. Canada Hire-purchase paper, U.K. Spread favor U.K. 4-1.35 Forward pound -0.82 Net incentive (U.K. + ) +0.53 Treasury bills: Euro-$ deposits: 5.31 5.38 90-day 180-day Hire-purchase paper "(Mar. 23) 5.55 Local-authority deposit 5.33 (Mar. 23) Upper Panel Chart 3 31 (Period: March 244.95 Euro-$ deposit (average) 5.20 (Date: Price of gold " Thursday, March 23 Zurich 3-month deposit (Date: March 15 Japan composit rate (Date: November 31 4.95 5.31 ) 4,50 ) 7.19 ) 4.53 U.K. War Loan (Thurs.,March 30) 6.52 *German Fed. (Thurs., March 23 ) 7.03 Swiss Confed. (Fri. , March 17 ) 4.36 Canadian Gov't. (Wed., March 29) 5.51 U.S. Gov't. (Wed., 4.50 Zurich 3-month deposit _5-44_ 4.03 Chart 7 ) March 15 4.09 U.S. U.K. Canada Interbank loan rate (German) (March 24-31) Euro-$ deposit (London) ) Interbank loan (mid-point) Lower Panel 5.44 4.09 Chart 6 (Friday, March 31) Chart 2 (Friday, March 31 ) 5.25 5"! 25 U.K. U.S. 4.83 31 Finance co. paper: Call 30-day April 5, 1967 35.178 March 29 ) Chart 4 (Friday, March 3 1 ) Treasury bills: Canada U.S. Spread favor Canada * Netherlands Gov't, perpetual 3% Thursday, March 23 ) 4.03 4.09 - 0. 06 Forward Canadian $ 4-0. 17 Net incentive (Canada + ) 4-0. 11 Canadian finance paper 6. 12 Euro-$ bonds (Fri., March 31 ) 5-50 5,2? For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966. ^Markets closed on Friday, March 24. Thursday data reported.
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