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rivtaioN o r i • OARD OF fcOVERNORS H .13 A p r i l 6 , 1962 No, 5U CAPITAL MARKET DEVELOPMENTS ABROAD APR 9 Io Germany I I . Nine Charts on F i n a n c i a l Markets Abroad 1962 FEDERAL RESERVE BANK OF RICHMOND ^ Germanys Money and C a p i t a l Markets during February During February, easy conditions continued t o p r e v a i l i n German > money and c a p i t a l markets, The s h o r t - t e r m money market was q u i t e l i q u i d and t h e day-to-day money r a t e f e l l b r i e f l y t o 1 - 1 / 8 per c e n t , German commercial banks continued t o place l a r g e sums abroad* The bond market continued strong and a c t i v e , with y i e l d s declining„ For the f i r s t time since l a s t summer a major loan was placed with a coupon of l e s s than 6 per cent and average market y i e l d s on long-term bonds declined from 6.0 t o 5®9 per c e n t . The c i t y of Osaka, Japan 3 f l o a t e d t h e f i r s t f o r e i g n loan on the German market s i n c e the IBRD loan i n A p r i l 1959» The 10-year, DM 100 m i l l i o n Osaka loan., which y i e l d e d 7 ol per c e n t , was e a s i l y absorbed by the market. The stock market was s l i g h t l y more buoyant in February and e a r l y March, but s u f f e r e d a major d e c l i n e i n t h e t h i r d week as t h e r e s u l t of domestic s e l l i n g , In March the money market became very t i g h t as t h e r e s u l t of a major t a x payment d a t e , which caused t h e banks to r e p a t r i a t e funds from abroad i n s i z e a b l e amounts and t o borrow temporarily from the c e n t r a l bank. As a r e s u l t of t h i s t e c h n i c a l f a c t o r , day-to-day money r a t e s rose as high as U per cent on March 27, but began t o d e c l i n e t h e following day. Market y i e l d s on long-term s e c u r i t i e s continued t o decline i n March, but a t a slower r a t e than in February® Following i s a summary of German i n t e r e s t r a t e s (per cent per annum) through February 1962: . , Spring 1959 low p o i n t 1962 1961 32/• February January Februarys Monthly range 3.50 •3. 3 1,88 1,28 3 - 3,25 Discount r a t e 2,75 Treasury b i l l s (60-90-day) 2 - 2,13 Interbank loan r a t e s : Day-to-day 1.75-2.88 2,63-1.13 Three-month 2,50-2.88 3.88-k.38 Commercial bank r a t e s 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 Total bonds ; p / Preliminary, DECONTROLLED AFTER SIX M02TTHS 1.25-2.75 2.75-3.13 1,13-2.88 2,38-3.00 II n,a = n,%, NOT FOR PUBLICATION - 2 - On f o r e i g n exchange markets, t h e mark was r e l a t i v e l y weak during February and most of March, f l u c t u a t i n g near p a r i t y . The weakness of the .'mark was probably r e l a t e d t o t h e small February t r a d e s u r p l u s , which amounted t o $U2 m i l l i o n a f t e r a d j u s t m e n t f o r a change i n s t a t i s t i c a l procedures3 but not fop se'asonal v a r i a t i o n » Money market,, In February t h e German money market continued t o be q u i t e l i q u i d „ Except a t t h e beginning of t h e month, when t h e r e i s a ' t e c h n i c a l t i g h t e n i n g , as the banks f u l f i l l t h e i r r e s e r v e r e q u i r e m e n t s , i n t e r b a n k lending r a t e s were n e a r l y a s low as i n January. In the I q s t week of February, d a y - t o - d a y money d e c l i n e d t o 1 - 1 / 8 per c e n t and 3-month money t o 2 - 3 / 8 per c e n t , compared w i t h lows of 1 per cent and 2-3/8 per c e n t , r e s p e c t i v e l y , i n January» During most of February, a s i n January,- German commercial banks placed s h o r t - t e r m f u n d s abroad» However, t h e volume of such t r a n s a c t i o n s i s not y e t known. On February lU, t h e Bundesbank attempted t o moderate t h e outflow of f u n d s by r a i s i n g from one t o two months t h e minimum p e r i o d f o r DM-dollar swaps by banks a t a p r e f e r e n t i a l r a t e ( c u r r e n t l y 0„£0 per c e n t ) „ The market d i s c o u n t on t h e 3-month forward d o l l a r ranged between 0o60 and 0»80 p e r cent i n February 0 In March t h e money-market t i g h t e n e d a p p r e c i a b l y as t h e demand f o r funds r o s e i n a n t i c i p a t i o n of a major t a x payment, d a t e . Rising b u s i n e s s demands due t o s e a s o n a l , and probably a l s o c y c l i c a l , i n f l u e n c e s c o n t r i b u t e d t o t h e demand.for funds» A f t e r e a s i n g somewhat i n e a r l y March, t h e money market t i g h t e n e d i n mid-March, with d a y - t o - d a y money r i s i n g t o k per c e n t on March 27o That t h e t i g h t n e s s was expected t o be temporary i s i n d i c a t e d by the f a c t t h a t i n t e r b a n k r a t e s f o r money f o r longer p e r i o d s , which a r e normally h i g h e r , lagged behind d a y - t o - d a y money r a t e s . Interbank r a t e s f o r 30-day money remained at 2 - 3 / 8 t o 2=£/8 p e r cent from March 6 through March 26, and 90-day money was s t e a d y a t 2 - 1 / 2 t o 2-3/U p e r c e n t . I t i s r e p o r t e d t h a t t h e commercial banks r e p a t r i a t e d w e l l over $100 m i l l i o n of funds from money-markets abroad and cashed Treasury paper and r e d i s c o u n t e d b i l l s with the c e n t r a l bank i n volume, but t h a t most banks d i d not have s u f f i c i e n t l i q u i d f u n d s t o meet r e s e r v e r e q u i r e m e n t s . On the one hand, t h e banks were a f r a i d t h a t too much r e f i n a n c i n g would c r e a t e excess l i q u i d i t y i n A p r i l , and on t h e o t h e r hand, t h e y expected l a r g e outpayments by t h e Treasury b e f o r e the end of t h e month<, On March 9 t h e Bundesbank again reduced t h e minimum swap p e r i o d f o r forward- d o l l a r s i n order t o moderate the i n f l o w of bank fundso The market d i s c o u n t on t h e d o l l a r 3-monthsforward d e c l i n e d during March t o 0 o 2 per cent on t h e 2 3 r d , but r o s e again t o 0.U on March 28 0 Throughout February and most of March, t h e Bundesbank's s e l l i n g r a t e f o r 60= t o 90-day Treasury b i l l s remained unchanged a t 1 - 7 / 8 per c e n t 5 and t h e d i s c o u n t r a t e was unchanged a t 3 per c e n t . NOT FOR PUBLICATION NOT FOR PUBLICATION - 3 - Bond m a r k e t . 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 were a t a record l e v e l f o r t h e month i n February® At DM 1,k75 m i l l i o n , the volume of new i s s u e s was s l i g h t l y h i g h e r t h a n i n J a n u a r y , when volume i s normally l a r g e s t . In both January and February new i s s u e s t»y i n d u s t r y , p u b l i c a u t h o r i t i e s , and f o r e i g n c o u n t r i e s were mainly r e s p o n s i b l e f o r t h e high volume. Mortgage and municipal bonds, which u s u a l l y cons t i t u t e t h e bulk of new i s s u e s , amounted t o l e s s t h a n kO per c e n t of t h e t o t a l , i n c o n t r a s t t o over 60 p e r c e n t i n I960 and 1961, New s e c u r i t y placements (nominal v a l u e s i n m i l l i o n s of DM, monthly or monthly a v e r a g e ) i n r e c e n t months were as f o l l o w s : Industrial 1960i 1961: 1962: Public authorities IV I II III IV 150 128 kk5 103 86 80 Nov. Dec, Jan. Feb. p / 150 110 150 129 105 lOl 530 ho 17 —— Foreign bonds „ —— —— k —— —— • 100 Sub- . Mort- . gage*/ total Total bonds Shares Total securities 128 U85 120 90 230 269 539 531 169 511 k21 1,125 7kk 613 726 . 97 229 lkl 263 98 518 1,35k 885 876 82k 129 . 355 521 780 koo 571 83k 58k 655 897 l,k72 l,k75 68 126 130 135 723 1,023 1,602 1,610 a / Includes municipal bonds. p / Preliminary. ~~ Average market y i e l d s on bonds d e c l i n e d i n January from 6 . 0 t o 5*9 p e r c e n t , and t h i s downward t r e n d of y i e l d s i s r e p o r t e d t o have continued i n February i n s p i t e of t h e l a r g e volume of new i s s u e s p u t on t h e market. The F e d e r a l Post l o a n of DM 210 m i l l i o h , which was i s s u e d a t t h e end of February with a 5 - 3 / k p e r c e n t coupon a t 99 ( e f f e c t i v e y i e l d 5*85 p e r c e n t ) was h e a v i l y o v e r s u b s c r i b e d . The DM 100 m i l l i o n l o a n of t h e c i t y of Osaka, Japan, was a l s o absorbed without d i f f i c u l t y ; however, t h e e f f e c t i v e y i e l d was 7 . 1 per c e n t . The F r a n k f u r t e r Bank a s c r i b e d the e x c e p t i o n a l success of bond p l a c i n g s i n January and February i n p a r t t o t h e r e l e a s e towards the end of l a s t y e a r of blocked savings d e p o s i t s amounting t o over. DM 2 b i l l i o n . Moreover, i n t e r e s t and redemption payments a t t h e c l o s e of 1961 were estimated by t h e Bundesbank a t DM 1 b i l l i o n , a n d . t h e bulk of t h e s e f u n d s were probably a v a i l a b l e f o r r e i n v e s t m e n t . I t i s not expected t h a t such a l a r g e volume of domestic f u n d s w i l l be a v a i l a b l e t o t h e bond market i n t h e next few months. Although i t i s g e n e r a l l y expected t h a t t h e downward t r e n d of long-term y i e l d s w i l l continue u n t i l a r a t e of 5 - 1 / 2 p e r c e n t i s e s t a b l i s h e d f o r i n d u s t r i a l and o f f i c i a l u s e r s , concern has been expressed i n some q u a r t e r s t h a t t h i s g o a l might be endangered by o v e r - l o a d i n g the market with new i s s u e s . NOT FOR PUBLICATION ~ NOT FOR PUBLICATION - h - On March 23, t h e F e d e r a l Loan Committee approved a DM 260 m i l l i o n , 15 y e a r , F e d e r a l Railway loan t o be i s s u e d on A p r i l U a t 99-5 p e r cent of par with a coupon of 5-3/U per c e n t . The F e d e r a l Government, which p l a n s t o r a i s e DM 1,0 b i l l i o n on t h e long-term c a p i t a l market i n 1962, i s not expected t o e n t e r t h e market b e f o r e May0 However, new long-term i s s u e s by i n d u s t r y during the s p r i n g of 1962 a r e expected t o amount t o DM 300-U00 m i l l i o n = Among t h e companies planning t o i s s u e bonds a r e Dortmund-Hoerder, Thyssen, and Rheinische Braunkohle, Stock marketo In F e b r u a i y , stock p r i c e s f l u c t u a t e d w i t h i n a f a i r l y narrow range In t h e f i r s t h a l f of March t h e market was more buoyant, and t h e F r a n k f u r t e r Allgemeine's index of share p r i c e s r o s e on March 6 t o 217 f o r t h e f i r s t time s i n c e mid-January, Foreign demand f o r German shares was r e p o r t e d t o be mainly r e s p o n s i b l e f o r t h i s r i s e i n market p r i c e s . A f t e r t h a t , however, p r i c e s d r i f t e d downward. On March 26, the market broke s h a r p l y , with t h e F.A.Z. index d e c l i n i n g by 2 . 6 per cent t o t h e lowest l e v e l since l a s t August 0 S e l l i n g p r e s s u r e , which came from Germans, was a t t r i b u t e d t o disappointment over the course of the Geneva t a l k s , and t o the strong warning on the dangers of r i s i n g wage c o s t s i s s u e d by Economics M i n i s t e r Erhard i n a r a d i o a d d r e s s t o the n a t i o n on March 22. The market r a l l i e d on t h e 2 7 t h , the F.A,Z, index r i s i n g t o 20L.91. Recent l e v e l s of t h e F.A.Z. index of stock p r i c e s (December 31, 1958 e q u a l s 100) w e r e ) : J u l y 31 Aug, 31 Oct, 13 31 Nov, 17 30 Dec, 29 223.80 203.38 206.35 219.36 229.72 227.36 220.92 1962 s Jan, 5 31 Feb, 36 15 19 27 Mar, 7 15 20 22 23 26 27 217.25 213.88 215.26 211.07 215.99 21U.01 211,90 217.30 215.31 212.33 210,01 207.25 201.95 20U.91 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 t h e Bundesbank r o s e by $36 m i l l i o n i n February t o $69UU2 m i l l i o n . A l l of the r i s e may have been due t o B r i t i s h purchases of marks i n order to repay on F e b r u a r y 2 8 p a r t of i t s DM drawing from t h e I n t e r n a t i o n a l Monetary Fund l a s t August, In view of t h e r e p o r t t h a t by t h e l a s t week of February German commercial banks had a l r e a d y begun t o r e p a t r i a t e f u n d s t o meet t h e demand caused by. a major t a x payment d a t e i n March, t h e r e may have been a d e f i c i t i n the German balance of payments i n February, due perhaps t o h e a v i e r i m p o r t s , b u t February d a t a a r e not y e t a v a i l a b l e „ O f f i c i a l NOT FOR PUBLICATION NOT FOR PUBLICATION - 5 r e s e r v e s r o s e by $212 m i l l i o n i n t h e f i r s t t h r e e weeks of March, p r i m a r i l y a s a r e s u l t of r e p a t r i a t i o n of f u n d s by t h e commercial banks• Monthly or q u a r t e r l y changes i n German r e s e r v e s 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„S0 d o l l a r s ) were as f o l l o w s : 1961 I +300 Bundesbank Comm. banks a / IV II HI -282 -570 +U79 Total +799 5/+122 - 6 hh + 68 Dec. Jan. 1962 Feb* - +358 -731 +36 -U27 -502 +818 n.a. -359 -lUU +87 n.a. a / Balances with f o r e i g n banks and money market investments, abroad e ~~ 15/ A f t e r s p e c i a l d e b t prepayments of $776 m i l l i o n t o t h e United S t a t e s and the United Kingdom, The t o t a l would be a r e s e r v e gain of $ 8 9 8 m i l l i o n , if adjusted for these transactions0 F o r e i g n a i d , Germany has r e c e n t l y concluded t h e f o l l o w i n g a i d agreements with f o r e i g n c o u n t r i e s : Country Amount DM § (millions) Syria 6b 16 Jordan 15 U Portugal 150 38 Rate per cent Term years Purpose S t a b i l i z a t i o n (I4O per cent of consortium l o a n ) . Not known 3 20 Port expansion. 3-1/1* h - 3 / h Irrigation, airport expansion. Foreign t r a d e . The German S t a t i s t i c a l O f f i c e has r e v e a l e d t h a t a change i n customs procedures r e s u l t e d i n a r t i f i c i a l l y high import f i g u r e s i n t h e l a s t t h r e e months» Beginning i n December 1961, goods d e s t i n e d e v e n t u a l l y f o r t h e German market were counted as imports when t h e y e n t e r e d customs f r e e zones, or warehouses, as w e l l a s , according to the former p r a c t i c e , when they l e f t such zones„ This double counting of i m p o r t s , which amounted to about $20 m i l l i o n i n December, aid t o $36 m i l l i o n i n January has been e l i m i n a t e d from the monthly t r a d e f i g u r e s i n t h e t a b l e below, t h u s r a i s i n g the s u r p l u s i n t h o s e months over what was p r e v i o u s l y reported. In F e b r u a r y , German f o r e i g n t r a d e , s e a s o n a l l y a d j u s t e d , showed a small d e f i c i t , i n c o n t r a s t t o a l a r g e s u r p l u s i n January. Exports were h a r d l y changed from January, whereas imports i n c r e a s e d s u b s t a n t i a l l y , , S i z e a b l e imports of s t a t e - t r a d e d goods were r e p o r t e d t o have c o n t r i b u t e d t o t h e high l e v e l of imports i n February, I t i s p o s s i b l e , moreover, t h a t t h e s e a s o n a l - a d j u s t m e n t f a c t o r i s no l o n g e r a d e q u a t e , and t h a t a more NOT FOR PUBLICATION NOT FOR PUBLICATION - 6 - r e a l i s t i c r e v i s i o n of t h e German t r a d e p i c t u r e would be obtained byaveraging two months' f i g u r e s . German Foreign Trade ( s e a s o n a l l y a d j u s t e d , monthly or monthly a v e r a g e s 5 i n m i l l i o n s UoSo d o l l a r s ) Calendar year I960 1961 Exports 951 1,052 II I T,0U7 1961 1,077 Monthly 1961 1962 Dec. Jan. Feb. III IV 1,060 1,058 1,131 1,088 1,081 Imports 8U8 917 852 936 911 960 1,013 915 1,097 Surplus 103 135 195 lUl . 151 98 118 173 - 13 Foreign exchange. The s p o t d o l l a r s t r e n g t h e n e d a g a i n s t the D-mark i n February and March 0 The mark dropped below par toward t h e end of F e b r u a r y , and f l u c t u a t e d c l o s e l y around par i n t h e f i r s t half of March. The mark strengthened a g a i n s t the pound and t h e d o l l a r f o r two days f o l l o w i n g t h e r e d u c t i o n of Bank of England's d i s c o u n t r a t e on March 22, but weakened i n the succeeding days of March 0 F r i d a y q u o t a t i o n s f o r the s p o t D-mark during t h e r e p o r t i n g period were ( i n U=S„ c e n t s ) : J a n . 26 Feb. 2 9 16 23 25.025 22.030 25 =>013 25.015 2ko998 " Mar. 2 9 16 23 25.013 2$.00L 25*006 25.0U5 The market d i s c o u n t on t h e 3-months' forward d o l l a r ranged between 0 . 6 and 0 . 8 per c e n t i n F e b r u a r y , b u t d e c l i n e d i n the f i r s t t h r e e weeks of March, r e a c h i n g 0.2 p e r c e n t on the 23rd 0 Europe and B r i t i s h Commonwealth S e c t i o n . I I . Nine Charts on F i n a n c i a l Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart I n t e r e s t A r b i t r a g e 2 United States/Canada I n t e r e s t A r b i t r a g e s New York/London I n t e r e s t A r b i t r a g e f o r German Commercial Banks I n t e r e s t A r b i t r a g e , Frankfurt/London S h o r t - t e r m I n t e r e s t Rates Lond-term Bond Y i e l d s I n d u s t r i a l Stock I n d i c e s Spot Exchange Rates — Major Currencies Against U.S. D o l l a r Chart 9 - 3-month Forward Exchange Rates 1 2 3 k 5 6 7 8 -= - - 7 Germanys 1961-oct. 6 Nov. 10 Dec. 22 1962-Jan. 26 Feb. 2 9 16 23 Mar. 2 9 16 23 S e l e c t e d Money Market Y i e l d s arid Exchange R a t e s (per c e n t p e r annum) : " 3-mo. Eurodollar deposits London 3-mo. i n t e r bank loans Frankfurt 3.25 3-31 3.88 UoOO 3.63 3.75 . -0.75 -0.32 +0.13 3.# "3.38 3.38 3.38 3.31 3.Wi 3.00 2.75 2.88 2.81 2.75 2.75 2.75 2 063 2.63 2.63 +0.50 +0.63 +0.50 +0.57 +0.56 +0.69 +O069 +0.81 +io00 +0.87 3 o h h 3.a 3.63 3.50 Spread in favor London 3-mo. forward marks v s . US $ Comm. bankS/ Market U.K. Ger. U.S. -0.25 - - 0 . 6 0 -0.25 -0.73 -1.30 6.00 5.31 5.28 2.13 2.00 2.00 2.31 2.U7 2.60 -0.25 -0.50" -0.50 -0.50 -0.50 -o.5o -0.50 -0.50 -0.501 -0.50 U.3U 5.16 5.16 5.3li 5.Wi 5.Wi 5.Wi 5.03 U.81 L.38 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 1.88 2.7U 2.67 2.67 2.72 2.83 2.69 2.69 2.76 : 2.72 2.70 T- 3-mo. T r e a s . b i l l s -0.95 -0.90 -0.99 -0.70 -0.62 -0.78 -O.63 -0.58 -0.56 -0.30 a / Bundesbank s p e c i a l r a t e . Germany: Comm. bank , loansr/ S e l e c t e d Loan.? D e p o s i t and S e c u r i t y Rates ~ (per c e n t p e r annum) 6-12 mo. d e p o s i t s Savings Time Bond y i e l d s Public 5-1/2^ Railway a u t h o r ities 1958-83 Share yields Yield gap 2 o h 1959-March June Sept. Dec. 7.25 7.25 7.50 8.50 3.25 3.25 3.25 3.25 2.50 2.50 2.50 3.25 5.U 5.5 5.7 5.9 5.6 5.7 5.8 6.2 3.22 2.66 2.33 2.19 3.0 3.5 U.O 1960-March June Sept. Dec. 8.50 9.50 9.50 8.50 3.75 3.75 U.50 U.50 3.25 3.25 U.oo 3.50 6.3 6.U 6.2 5.9 6.U 6.6 6.5 6.2 2.27 1.86 1.80 1.96 U.l U.7 U.7 U.2 196l-March June Sept. Dec. 8.00 7.50 7.50 7.50 k.25 U.00 3.50 3.5o 3.25 2.75 2.75 2.75 5.8 5.5 5.9 6.0 5.9 5.6 6.0 6.0 2.11 2.19 2.63 " 2.19 3.7 3.U 3.U 3.5 1962-Jan. Feb. 7.50 3.50 2.75 5.8 5.7 5.9 2.57 3.3 a / Approved c r e d i t s on c u r r e n t a c c o u n t . [INTEREST ARBITRAGE, iThuriday THREE-MONTH RATE U N I TED S T A T E S / CANADA figures TREASURY DIFFERENTIAL AND BILL R A T E S FORWARD Per CANADIAN DOLLAR EXCHANGE COVER S P R E A D IN F A V O R OF C A N A D A + RATE DIFFERENTIAL WITH FORWARD NET I N C E N T I V E IN F A V O R OF C A N A D A + t m l P#r annua l ! N T i t l * m » ! T E A 6 I . J I W YO RK/LONDON* [Friday i fi8«r«* : I 3.MONTH I I TREASURY ! BILL 1 RATES EURO D O I U R R A T t - l O K b O N I 1 1 i i I M 1 i I I I I I 1 I I 11 1 I I I I I I I I I I I I 1 I i I RATE" D I F F E R E N T I A L A N D 3-MONTH FORWARD STERLING FORmARDIATE Discount RATE DIFFERENTIAL FORWARD WITH EXCHANGE COVER IN F A V O R OF 1 0 N D 0 N IN F A V O R OF N E W Y O R K AO INTEREST ARBITRAGE Friday FOR GERMAN COMMERCIAL BANKS figures 3-MONTH P i m n l TREASURY - EURO-DOLLAR BILLS, DEPOSIT INTERBANK LENDING RATE AND RATES r H . G E R M A N I N T E R B A N K L O A N RATE RATE DIFFERENTIAL \ RATE _ N E T DIFFERENTIAL AND \ FORWARD DEUTSCHE'^ARK I DISCOUNT ( — ) WITH INCENTIVE: FORWARD EXCHANGE In" F A V O R o ! COVE FRANKFUR ~ ( + ) INTERBANK LOAN RATE / 1960 1961 1962 p• r annua II INTEREST ARBITRAGE, ~3-MONTH FRANKFURT/ LONDON T R E A S U R Y BILLS A N D INTERBANK LENDING 1 RATES IA RATE D I F F E R E N T I A L A N D | - 3 - M O N T H FORWARD STERLING S P R E A D IN F A V O R O F W T t t b K I N G D O M B i l l GERMAN TREASURY SILLS FORWARD RATE GERMAN J N T E R I A N K RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER "NET INCENTIVE o T U f U T E D KINGDOM ^ V E ^ A/ 1962 SHORT-TERM INTEREST RATES * iiiid-eoiui - IOMOOM T 1 i MSI ^ MSI I 1U0 J CAMAOA -1**1 Mil 3morwh treasury bill ralei lor all countriej except Japan (3-month interbank depotit role) and Switzerland (3 month deposit rate) ~ 3-monlh rate lor U. S dollar depoiili in London 3 LONG-TERM BOND YIELDS V X UlA>>i 1 1 i I 1 ii1 1 1 1 1 1 1 11 11 11 11 1 1 1 1II 11 11 1II M II 1M l l l l l \~UJ~ c tL°^l_7 INDUSTRIAL STOCK INDICES* HO 350 Note: Jopon Index- ol oil iiocli* Iroded on Tokyo enchonge SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR ^ ^ Abov e pgr I9 60 3-MONTH FORWARD EXCHANGE RATES P«t t i n ! AGAINST U. S. DOLLARS AGAINST POUND STERLING PREMIUM AGAINST POUND + ; STERLING - LONDON GERMAN - T O N D O N FRENCH FRANC A I960 MARK 1961 per annum
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