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V UEKABY Iti ii)6' NO.13311 1 j ' o» tm« August 9, 1967 ~ ^SERVE^B/VKK ^ CAPfTAL MARKET DEVELOPMENTS ABROAD I. II. I. 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 Chart Chart Chart New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds London: Yields for U.S. Dollar Investors on 3-month Funds 3 - Interest Arbitrage: Frankfurt/London, Zurich/London 4 Interest Arbitrage: New York/Canada Interest Arbitrage: New York/Londort 5 Short-term Interest Rates 6 7 Long-term Bond Yields Spot Exchange Rates—Major Currencies 8 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 : 1 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 Wf.meidoy I tg u u EURO D O L L A R D E P O S I T U . S . C E R T I F I C A T E OF D E P O S I T E U R O D O L L A R 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 IN NEW YORK U . K . HIRE PURCHASE CANADIAN FINANCE COMPANY U.S. F I N A N C E C O M P A N Y Mar Jun. 1965 Sept. Dec. Mar. . un. 1966 Sept. Dec. Mar. 1967 Jun. LONDON: YIELDS FOR U . S . DOLLAR INVESTORS O N 3-MONTH FUNDS E U R O , D O L L A R D E P O S I T RATES 30 180 HIRE PURCHASE AND LOCAL AUTHORITY DAY DAY DEPOSIT RATES (covered HIRE PURCHASE EURODOLLAR DEPOSIT DIFFERENTIAL FAVOR H I R E P U R C H A S E FAVOR E U R O - D O L L A R EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DIFFERENTIAL DEPOSIT FAVOR LOCAL A U T H O R I T Y FAVOR E U R O - D O L L A R 1965 1966 1967 M I 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 EURODOLLAR DIFFERENTIAL FAVOR F R A N K F U R T FAVOR EURO-DOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE ( C O V E R E D ) EURO-DOLLAR SWISS DEPOSIT RATE DIFFERENTIAL FAVOR Z U R I C H FAVOR ™ R 0 - 0 0 L L A > II PRICE OF G O L D I N L O N D O N 35.3 35.0 1965 1966 1967 INTEREST ARBITRAGE, ridn>• figures UNITED F 3-MONTH STATES/CANADA Per cent per onnum TREASURY BILL RATES C A N . F I N . CO. P A P E R CANADA UNITED STATES BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN DOLLAR PREMIUM S P R E A D I N F A V O R OF C A N A D A FORWARD RATE 3-MONTH COVERED RATE D I F F E R E N T I A L S DISCOUNT (NET I N C E N T I V E S ) FAVOR CANADA PRIME FINANCE PAPER FAVOR U . S . FAVOR CANADA ~ TREASURY BILLS FAVOR U.S. M J S D M 1964 J 1965 S D M J 1966 S D M S 1967 D 1 INTEREST ! 3-MONTH ARBITRAGE, TREASURY NEW BILL YORK/LONDON RATES j U.K. LOCAL AUTHORITY DEPOSITS LONDON /V NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING S P R E A D I N F A V O R OF L O N D O N PREMIUM DISCOUNT FORWARD RATE IRATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER V"\ (NET INCENTIVE) ! IN F A V O R OF L O N D O N IN F A V O R OF N E W Y O R K 1964 1965 1966 1967 1 EURO-DOLLAR - LONDON + SWITZERLAND L O N G - T E R M B O N D YIELDS NETHERLANDS CANADA SWITZERLAND . 9 GERMANY 8 EURO-DOLLAR BONDS 1963 1965 1966 1967 SPOT 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 . DOLLAR CFDMAN MARK ; / " \A / V _ / ; I U.K. FRENCH FRANC BELGIAN FRAN DUTCH GUILDER CANADIAN DOLLAR I T A L I A N LIRA JAPANESE YEN v> 3 - M O N T H F O R W A R D E X C H A N G E RATES A G A I N S T U.S. D O L L A R S — N E W YORK SWISS FRANC GERMAN MARK POUND STERLING FRENCH FRANC! DUTCH GUILDER CANADIAN DOLLAR A G A I N S T P O U N D STERLING — L O N D O N Friday figu S W I S S FRANC ' A rn, GERMAN MARK U . S . DOLLAR DISCOUNT w I N D U S T R I A L STOCK I N D I C E S SWITZERLAND GERMANY JAPAN CANADA" August 9j, 1967. H. 13 No. 311 II. Latest Figures Plotted in H.13 Chart Series, 1967 (all figures per cent per annum) Chart 1 (Wednesday, Upper Panel Euro-$ deposit 5.06 U.S. certif. of deposit 5.01 Lover Panel ) Aue. 2 (Friday, Aug. 4 Finance co. paper: U.S. Canada Hire-purchase paper, U.K. Treasury bills: ) 4. 75 4. 78 4.99 ) 4.13 5. 21 4.22 U.S. U.K. Canada Interbank loan rate (German) 3.68 5. 75 Euro-$ deposit (London) 5.18 Chart 3 (Period: Aug. 7 3.68 Euro-$ deposit (average) 5.15 (Date: Price of gold (Friday, July 28 4.00 Chart 4 (Friday, Aug. 4 Treasury bills: Canada U.S. Spread favor Canada 35.196 ) ) 4.22 4.13 Zurich 3-month deposit (Date: July 15 Japan composite rate (Date: May 26 ) 4.00 ) 7.30 Chart 7 U.S. Gov't. (Wed. , Aug. 2 ) 4.85 U.K. War Loan (Thurs., Aug. 3 ) 6.87 German Fed. (Fri., ) 6.74 Swiss Confed. (Fri., July 28 ) 4.64 Canadian Gov't. (Wed., Aug. 2 ) 5.92 Netherlands Gov't, perpetual 3% (Friday, July 21 ) July 28 Euro- $ bonds (Fri., Aug. 4 ) 5.71 5.65 6.33 Aug. 4 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966. Forward Canadian $ Net incentive (Canada 4) Canadian finance paper ) ) July 15 Zurich 3-month deposit Net incentive (U.K. +) (July 28) Interbank loan (mid-point) Lower Panel - .57 + .51 5. 18 5.68 Local-authority deposit (Jjly 2§ 5.59 Upper Panel +1.08 Spread favor U.K. 90-day 180-day 4.75 5.25 Hire-purchase paper 5.21 4.13 Forward pound Treasury bills: Euro-$ deposits: ) U.K. U.S. Chart 6 (Friday, Aug. 4 Chart 2 (Friday, Aug. 4 ) Call 30-day Chart 5 (Friday, Aug. 4 5. 38
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