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H. 13 No. 365 t r." ; " ^ V 1 \ August 28, 1968. ^CAPITAL MARKET^)! CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 Ten Charts on Financial Markets Abroad Chart Chart 1 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London: Yields on U.S. Dollar Funds London: Yields for U.S. Dollar Investors on 3-Month Funds Interest Arbitrage: Fraikfurt/London, Zurich/London Interest Arbitrage: New York/Canada Interest Arbitrage: New York/London Short-Term Interest Rates Long-Term Bond Yields Spot Exchange Rates--Major Currencies Against U.S. Dollar 3-Month Forward Exchange Rates • Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION W O r a O L L E D AFTER SIX B ® ® 4NEW Y O R K - L O N D O N : YIELDS O N U.S. 3 - M O N T H D O L L A R DEPOSIT RATES DOLLAR FUNDS Wedneidoy figures EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF DEPOSIT | | ! ! ; i x ; E URO DOLLAR OVER U. S. C E R T I F I C A T E OF DEPOSIT ; I i i CALL EURO i i i i DOLLAR , , DEPOSIT ! I I i I I ; 1 I RATE VS. U.S. 1 I I FEDERAL ! KMX 1 , 1 1 . I 1 i u FUNDS 1 , 1 1 1 1 1 , 1 1 : 1 ! RATE CALL EURO-DOLLAR DEPOSITS | —i~ ~ A J Jun. • • Mar. Jun. Sept. u w EURO-DC ILLAR OVER FEDERAL FUNDS Mar. >. Sept. Dec. Mar. 1965 Jun. 1966 Sept. Dec. Mar. Jun. 1967 Sept. i Dec. 1968 Dec. LONDON: YIELDS EURO-DOLLAR FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES 180 DAY 9 0 DAY M S D 1965 M J 1966 S D M J 1967 S 0 M J 1968 S 0 L O N D O N : YIELDS FOR U . S . HIRE PURCHASE A N D Friday ligur.. LOCAL DOLLAR INVESTORS O N AUTHORITY 3-MONTH FUNDS D E P O S I T RATES ( c o v e r e d ) p,r c .„, per EURO DOLLAR DEPOSIT, HIRE PURCHASE FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR EURODOLLAR EURO-DOLLAR DEPOSIT A n LOCAL AUTHORITY DEPOSIT (-. FAVOR LOCAL AUTHORITY DIFFERENTIAL EURODOLLAR 1965 1966 1967 1968 annum I i INTEREST ARBITRAGE; F R A N K F U R T / L O N D O N , FRANKFURT INTERBANK LOAN RATE V S . ZURICH/LONDON LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF DM EURO-DOLLAR I N T E R B A N K LOAN RATE 1 DIFFERENTIAL j 1 /vv_ !' i 1 | I ! 1 / u U 1 ! 1 1 1 i ZURICH I I DEPOSIT 1 1 1 S 1 ! ! 1 RATE V S . L O N D O N EURO-DOLLAR RATE 1 1 FAVOR FRANKFURT J . ! | I 1 1 FAVOR EURO-DOLLAR I I I I ! ; I i (COVERED) IN TERMS OF SWISS FRANCS EURO-DOLLAR S W I S S D E P O S I T RATE DIFFERENTIAL T T i FAVOR ZURICH - FAVOR EURO-DOLLAR H PRICE OF G O L D IN U S dollar equivalent per fine LONDON 35.5 45.0 35.4 43.0 35.3 41.0 35.2 39.0 35.1 37.0 35.0 35.0 1965 * Market closed March 15- April 1, 1968 1966 1967 1968 INTERS? ARBITRAGE, Friday figures 3-MONTH UNITED TREASURY BILL STATES / C A N A D A RATES CAN. FIN. CO PAPER UNITED STATES BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR PREMIUM 1 2 SPREAD IN FAVOR OF CANADA FORWARD RATE V/' DISCOUNT , 3-MONTH , , COVERED r RATE DIFFERENTIALS T (NET INCENTIVES) FAVOR CANADA TREASURY BILLS PRIME FINANCE PAPER FAVOR U.S. FAVOR U.S. 1965 1966 1967 1968 1 1 INTEREST ARBITRAGE, NEW YORK/LONDON Per cent per onnum J LONDON NEW M J s D M 1965 J 1966 YORK S D M J 1967 S D M J 1968 s D <6 INTEREST RATE ARBITRAGE, NEW DIFFERENTIAL AND YORK/LONDON 3-MONTH FORWARD 4 STERLING SPREAD IN FAVOR OF LONDON 2 PREMIUM 0 DISCOUNT FORWARD RATE 2 4 6 6 10 2 IN FAVOR OF LONDON 0 IN FAVOR OF NEW YORK 2 4 6 DIFFERENTIAL WITH FORWARD 1965 1966 EXCHANGE COVER (NET 1967 INCENTIVE) 8 1968 0\ S H O R T - T E R M INTEREST RATES* EURO-DOLLAR - L O N D O N + f ^ U.S. SWITZERLAND — J 2 9 JAPAN CANADA GERMANY 1964 1966 1965 Switzerland ,3 month depoul role and Germany Interbank Loan Role 1967 . 1968 L O N G - T E R M B O N D YIELDS NETHERLANDS CANADA U.S. SWITZERLAND r 9 GERMANY EURO-DOLLAR BONDS 8 U.S. EURO DOLLAR BONDS U.S. CORP. Aaa BONDS 111 1964 1965 1966 1967 1968 V S P O T E X C H A N G E RATES - M A J O R C U R R E N C I E S A G A I N S T U . S . D O L L A R S W I S S FRANC r GERMAN MARK Sv? V U.K. S T E R L I N G B E L G I A N FRANC DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR / I T A L I A N LIRA JAPANESE YEN | Below por j s d m 1965 j s 1966 d ' m i s 1967 d m j 1968 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS-NEW YORK PREMIUM* GERMAN MARK SWISS FRANC POUND STERLING DISCOUNT- PREMIUM* DUTCH GUILDER v FRENCH FRANC T C A N A D I A N DOLLAR DISCOUNT- A G A I N ST P O U N D STERLING — L O N D O N GERMAN MARK | S W I S S FRANC U . S . DOLLAR DISCOUNT- 1965 1967 1966 1968 \3 I N D U S T R I A L S T O C K I N D I C E S 1958;100 Ratio scale 360 320 280 240 S W I T Z E R L A N D 200 U.S. G E R M A N Y 160 U.K. 120 360 320 280 JAPAN 240 C A N A D A L 200 160 120 1965 * * * 1966 SWUJ Bank Corporation industrial stock index Japan index of 22 5 industrial and other stocks traded on the Tokyo exchange 1967 1968 August 28, 1968 H. 13 No. 365 II.a Latest Figures Plotted in H. 13 Chart Series, 1968 (all figures per cent per annum) Chart 1 (Wednesday, Upper Panels Euro-$ deposit 5.94 U.S. certif. of deposit 5.86 Lower Panels Chart 4 (Friday, Aug. 23 Aue. 21 ) (Wednesday, Aug. 21 ) Treasury bills: Canada 5.57 U.S. 5.10 Spread favor Canada +0.47 -1.15 ~Q« 68 Call Euro-$ deposit 5.75 Forward Canadian dollar Federal Funds 6.02 Net incentive (Canada +) Chart 2 (Friday, Aug. 23 ) Upper Panel - Euro-$ deposits : Call 30-day 5.88 6.18 SO-day 180-day Canadian Finance paper Aug. 16 6.62 Aug. 23 6. 38 Chart 5 (Friday, Aug. 23 ) Treasury bills: U.K. 6.00 6.25 6. 72 U.S. 5.10 Spread favor U.K. Middle Panel Hire-purchase paper Aug. 16 5, 34 Euro-$ deposit Aug. 16 6.00 +1=62 U.K. local authority deposit Euro - $ deposit I. Aug. 16 Interbank Loan (mid-point) 3.56 Euro-$ deposits Lower Panel (date (average) 3.69 July 15 ) 3.75 Euro-$ rate (covered) Aug. 23 3.32 Price of gold (Friday, 5ug. 23 ) U.K. 6.72 Canada 5.57 Interbank loan rate (German) ( Aug. 16-23 ) 3.56 Euro - $ deposit (London) 6.00 Zurich 3-month deposit (Date: Zurich 3-month deposit II. 5.10 Treasury bills: U.S. 6.00 Chart 3 Upper panel (Period: Aug. 16-23 ) 7.44* Chart 6 (Friday, AUg. 23 Lower Panel Local-authority depositAug. 16 5. 22 1 July 15 ) 3.75** ) 7.52 Japan Composite rate (Date: June 30 39.59 *Aug. 16 7.66 **June 23 31 July 7 3.75 3.75 3.75 ) H. 13 No. 365 - lib - Chart 7 U.S. Gov't. (Wed., Aug. 21 Chart 9 ) (Friday, Aug. 23) 5.14 U.K. War Loan (Thurs., Au&, 22) 7.57 Against U.S. dollars: German Fed. (Fri., Au£. 16 ) (Fri. , Aug. 23 ) Swiss Confed. (Fri., ) 6.25 6.25 .a. Swiss francs +2.68 Dutch Glds. +1. 23 German marks +2.21 Fr. Francs -3.75 Canadian Gov't. (Wed. , Aug. 21) 6,.51* £ Sterling Netherlands Gov't. Against pound sterling: (Friday, (Friday, Euro-$^bonds (Fri., U.S. Euro-bonds ( Aug. 9) Aug. 16 ) Aug. 23) 6.,59 6.,54 7. 60 July 31 ) 7.29 U.S. Corporate Aaa (July 31 ) 6.24 Chart 8 (Friday, Aug. 23 Swiss francs +3„ 64 Dutch Glds. -0.34 German marks -0.53 Can. $ +0. 78 it. Lire +0o 58 Germany ( +0. 17 Canada ( ( U.K. £ Ster. -0.50 Ger. marks U.K. (Fri., Aug. 23 J 217t 4 218 . 6 286 18 ) J ) 281,,8 Switzerland (Fri.. Aug. 23 ) Aug. 8 Aug. 15 ) ) For descriptions and sources of data, see Special Supplement No. 343-S dated March 27, 1968. 6.48 6.45 6„ 48 334,,4. _) French francs -0. 74 "July 31 Aug. 7 Aug. 14 +4. 69 Chart 10 U.S. ( Aug. 16 ( Aug. 23 Japan ( Aug. 23 ) -1. 15 U.S. dollars +2.05 Swiss francs+lo59 Belgian francs-0.18 Jap. Yens -2, 36 Can. $ 206.8 208.1
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