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DIVISION O F I h ^ R N A T I O N A L F I N A N C E
BOARD OF O O V E R N O R S
F E D E R A L RESERVE SYSTEM
H. 13
August 3 1 ,
No. 263/
I ^
^ p ^ P l k A L MARKET DEVELOPMENTS ABROAD
I.
II.
Ten C h a r t s on F i n a n c i a l M a r k e t s Abroad
L a t e s t F i g u r e s P l o t t e d i n H. 13 C h a r t S e r i e s ,
1966
Ten C h a r t s on F i n a n c i a l M a r k e t s Abroad
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
1
New Y o r k , London, M o n t r e a l :
Yields for
U . S . D o l l a r I n v e s t o r s on 3 - m o n t h F u n d s
2
London: Y i e l d s f o r U . S . D o l l a r I n v e s t o r s
on 3 - m o n t h F u n d s
Frankfurt/London,
3 - Interest Arbitrage:
Zurich/London
New Y o r k / C a n a d a
Interest Arbitrage;
Interest Arbitrage: New Y o r k / L o n d o n
S h o r t - t e r m Bond Y i e l d s
L o n g - t e r m Bond Y i e l d s
Spot Exchange R a t e s - - M a j o r C u r r e n c i e s
Against U.S. D o l l a r
3-month Forward Exchange R a t e s
9
10
I n d u s t r i a l Stock Indices
E u r o p e and B r i t i s h Commonwealth S e c t i o n
OFFICIAL USE ONLY
( D e c o n t r o l l e d a f t e r s i x months)
1966
NEW
YORK,
YIELDS
DOLLAR
FOR
LONDON,
U.S.
D E P P SIT
MONTREAL:
DOLLAR
RAT ES:
INVESTORS
NEW
ON
M O NTH
FUNDS
YORK-LONDON
EURO DOLLAR DEPOSIT
U . S . CERTIFICATE 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
FINANCE
fridoy figwrei
CO.
PAPER
RATES
(covered):
QUOTED
IN
NEW
YORK
CANADIAN FINANCE
COMPANY
fc
U.K. HIRE PURCHASE
U.S. FINANCE COMPANY
Mar
Oee.
Mar
Jun.
1965
Sept.
Dec.
Mar.
Jun.
1966
Sept.
Dec.
LONDON:
YIELDS
EURO-DOLLAR
Friday ligi
IHIRE
FOR
DEPOSIT
PURCHASE
AND
U.S.
DOLLAR
JNVESTORS
ON
3-MONTH
FUNDS
RATES
LOCAL
AUTHORITY
DEPOSIT
RATES
(covered)
EURO DOLLAR D E P O S I T
HIRE P U R C H A S E
DIFFERENTIAL
FAVOR HIRE PURCHASE!
1
FAVOR EURO-DOLLAR
LOCAL A U T H O R I T Y D E P O S I T
EURO-DOLLAR DEPOSIT
DIFFERENTIAL
p
T
FAVOR
LOCAL AUTHORITY
FAVOR-EURO
1964
1965
DOLLAR
1
[INTEREST
ARBITRAGE:
FRANKFURT
INTERBANK
FRANKFURT/LPNDON,
LOAN
RATE
VS.
ZURICH/LONDON]
LONDON
EURO
DOLLAR
IN
RATE
(COVERED)
TERMS
OF
D M _
I N T E R B A N K LOAN R A T E
EURODOLLAR
1
r
.DIFFERENTIAL
FRANKFURT
FAVOR EURO-DOLLAR
ZURICH
DEPOSIT
RATE
VS.
1
LONDON
EURO
DOLLAR
I
RATE
IN
(COVERED)
TERMs7oV/VeA
S
FRANCS
E U R O DOLLAR
S W I S S DEPOSIT RATE
1
r
DIFFERENTIAL
F A V O R ZURICH
FAVOR E U R O D O L L A R
H
PRICE OP G O L D
IN
LONDON
35.2
35.0
1964
1965
1966
INTEREST
ARBITRAGE,
UNITED
STATES/CANADA
fridoy liguret
3-MONTH
TREASURY
BILL R A T E S
CAN. FIN. CO.lPAPER
CANADA
UNITED STATES
BILL
RATE
DIFFERENTIAL
AND
FORWARD
CANADIAN
DOLLAR
S P R E A D IN FAVOR OF C A N A D A
PREMIUM
I
I V'
FORWARD RAT*
3-MONTH
COVERED
RATE
DIFFERENTIALS
DISCOUNT
(NET
INCENTIVES)
FAVOR C A N A D A
PRIME FINANCE PAPER
FAVOR U.S.
FAVOR CANADA ~
TREASURY BILLS
F A V O R U.S.
1963
1964
1965
1966
INTEREST
ARBITRAGE,
Ffidoy ligur
3-MONTH
TREASURY
NEW
BILL
Y O R K / L O N D O N
RATES
U . K . LOCAL A U T H O R I T Y D E P O S I T S
NEW YORK
RATE
DIFFERENTIAL
FORWARD
AND
3-MONTH
STERLING
I
f
S P R E A D IN FAVOR OF LONDON
FORWARD RATE
V
I 1 I I I I I I
RATE
DIFFERENTIAL
WITH
FORWARD
I
EXCHANGE
COVER
(NET
INCENTIVE)
IN FAVOR OF LONDON
IN FAVOR OF NEW YORK
M
I
S
I I I I I 1 I I I I 11 I I I I I I I I I I I I I I I I I I I I I I I
J
S
D
D
M
J
S O
M
J
S
D
1963
1964
1965
1966
SHORT-TERM
INTEREST
RATES*
U.K.
E U R O - D O L L A R - LONDON
U.S.
SWITZERLAND
JAPAN
GERMANY
A'
CANADA
U.S.
1962
*
1963
1964
1965
3 month Ifotury bill roin lor oil counlriei e *cepl Jap an fAvtrags rale o,n bank loom and discounts }"
Swilierlond f3 monlh deposit role/ ond German^ {Interbank Loan Role)
3 month rale for US dollar deposits in London
1966
LONG-TERM
1QNP
YIELDS
6ERMANY
E U R O - D O L U R BONDS
U.S.!
NETHERLANDS
<-/ —
r
U.S.
SWITZERLAND
1962
1963
1964
1966
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
p>r c < n |
1.6
S W I S S FRANC
1.2
GERMAN MARK
Z/V
U.K. STERLING
BELGIAN FRANC
FRENCH F R A N C
DUTCH GUILDER
C A N A D I A N DOLLAR
ITALIAN LIRA
J A P A N E S E YEN
M
J
S
1954
0
M
S
1965
0
I
1966
s
0
3-MONTH
AGAINST
Friday figures
FORWARD
U.S.
EXCHANGE
DOLLARS —NEW
RATES
YORK
PREMIUM
G E R M A N MARK
SWISS FRANC
|
V
POUND STERLING
DISCOUNT-
D U T C H GUILDER
FRENCH FRANC
C A N A D I A N DOLLAR
DISCOUNTA G A I N ST
POUND
STERLING — L O N D O N
Friday figures
S W I S S FRANC
G E R M A N MARK
U . S . DOLLAR
DISCOUNT0
M
* 1964
M
J
1965
s
0
M
S
1966
P
INDUSTRIAL
STOCK
INDICES
Roiio icol*
300
-SWITZERLAND —
250
GERMANY
U.K.
200
U.S.
150
300
250
JAPAN
200
CANADA
U.S.
150
100
1963
1964
* * Japan in d# * of 22 S indvilrial and ol he# iiocki traded on ihe lokyo t t c h a n g i
1965
1966
August 3 1 ,
1966
H. 13
No. 263
(all figures per cent per annum)
Upper Panel
Chart 1
(Wednesday,
August 24)
Euro-$ Deposit
6.62
U.S. certif. of deposit
5.77
Lower Panel
August 26
(Friday,
U.S.
Canada
Hire-purchase paper, U.K.
Chart 2
(Friday, August 26 )
6.06
6.19
6.75
Spread favor U.K.
+1.58
Forward pound
-1.05
Net incentive (U.K. +)
+0.53
Treasury bills:
6.75
7.25
90-day
180-day
Hire-purd&ase paper
7.22
( A u g u s t 19)
Local-authority deposit
6.47
( A u g u s t 19)
Chart 3
Upper Panel
(Period: August 1 6 - 2 3 )
Interbank loan (mid-point)
6.75
Euro-$ deposit (average)
6.38
Lower Panel
(Date:
July
Zurich 3-mo. deposit
Interbank loan rate (German)
(August 16-23)
Euro-$ deposit (London)
Zurich 3-mo. deposit
(Date: J u l y 15
Japan composit rate
(Date: J u n e 30
4.25
)
7.49
35.179
)
4.92
U.K. War Loan (Thurs. , Aug. 25)
7. 29
German Fed. (Frl., Aug.
)
8- 24
Swiss Confed. (Frl.,Aug. 19 )
4.07
19
(Wed. , A u g . 1 7 )
5.91
Netherlands Gov't perpetual 3%
(Friday,August 19 )
5. 97
6.82
Canadian Gov't.
Chart 4
(Friday, August 26
6. 75
)
U.S. Gov't. (Wed., August 2 6 )
)
15
4. 99
^ 57
4.97
U.S.
U.K.
Canada
Chart 7
4. 25
Price of gold
(Friday, August 19)
6.57
4.99
U.K.
U.S.
Chart 6
(Friday, August 26 )
Euro-$ deposits:
Call
7-day
30-day
Treasury bills:
)
5.63
6.47
7. 26
Finance co. paper:
Chart 5
(Friday, August 2 6 )
Treasury bills:
Canada
U.S.
Spread favor Canada
4.97
4.99
- 0 , 02
Euro-$ bonds (Frl..Aug. 26
Forward Canadian $
4-0. 04
For descriptions and sources of data,
see special supplement to H.13,
Number 239, March 16, 1966.
Net incentive (Canada +)
+ 0, 02
Canadian finance paper
(August 19)
6.25
)
@FedFRASER