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Vti SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERES OF CHARTS BOMB) OF GOVEMMS OF THE FEDBtAL KSEtVE SYSTEM TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1A and B - Spot Exchange Rates, Major Currencies against U S. Dollar Chart 2A and B - 3-Month Forward Exchange Rates, Najor Currencies against U S. Dollar Chart 3A and B - 3-Month Forward Exchange Rates, Najor Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERN INTEREST RATES Chart 5 - Call Honey Rates Chart 6A and B - London: Euro-S Deposit Rates Chart 7A and B - New York - London: Yields on U.S. Dollar Funds Chart 8A and B - London: Covered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B- Interest Arbitrage: U S -Germany and U.S.-Switzerland Chart 11 - Interest Arbitrage: United States-Canada Chart 12A and B- Selected Short-term Interest Rates PART III. LONG-TERN INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Stock Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, which was published under that title through December 31, 1968. The changes in the format and order of the charts are explained in the Supplement to the series, which accompanied issue dated January 1,1969. All series and their sources are folly described in a Supplement dated January 1, 1972. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S DOLLAR Weekly averages Per cent GERMAN MARK IJC. POUND SWISS FRANC DUTCH GUILDER FRENCH FRANC JAPANESE YEN Below M S 1972 * Pound floated June 23. 1972 S D 1973 0 % <> Chert II SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages P f cent BELGIAN FRANC ITALIAN j o 1972 s D 1973 Ratio scale, U S cents 102 100 9# 94 92 M J S 1970 D M J 1971 S D M J 1972 0 ; v ^ Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR May 11. 1971 - Dec1 17. 1971 Weekly averages Per cent GERMANY NETHERLANDS JAPAN U.S. MAY JUNE JULY SEPT AUG 1971 * Financial franc OCT NOV DEC Chart ID SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR 11. 1 9 7 1 - Dec 17. 1971 Per UJC. SWITZ. ITALY MAY JULY AUG. SEPT 1971 OCT. WW. DEC 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U S. DOLLAR Per cent per annum Weekly averages U K. POUND DISCOUNT PREMIUM DISCOUNT- PRtMIUM DUTCH GUILDER , , DISCOUNT- i I | I I I 1 1 1 i _1 , : i . J l i l l L J —1 1 - ± 1-1 1 1 1 L 1-1- I I i I I I I I S 1969 * C'mu i DO'.iar Rate 1970 ; supported by Bank u1 Can ad.-. No D M J 1971 S D M J S 1972 D Chart 2B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U-S. DOLLAR Per cent per annum Weekly averages I I I I I I 12 SWISS FRANC FRENCH FRANC I i . 1970 1971 1972 JAPANESE YEN J s D * Devaluation of the French franc from 4 94 to 5 55 for $1 00 * * No quotation s 0 Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U K. POUND Friday figures Per cent per annum 20 GERMAN MARK U.S. DOLLAR j : . : M J S D 1969 M J.; F f f i M J 1970 S D M j ) i j lj L J S 1971 D M , i l.i L L I _ L L J J J S 1972 D s Chart 3B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum SWISS FRANC FRENCH FRANC DISCOUNT — S 1969 J S 1970 * Devaluation of the French franc from 4 94 to 5 55 for $1 00 D S 1971 D J 1972 S D GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon lix.ngs U S dollar equivalent per fine ounce I , ~ 80 60 50 40 1 ; : M J S D 1969 M J S 1970 D M J S 1971 D M J S 1972 D CHART 5A CALL MONEY RATES DOLLAR FUNDS Per cent per annum Weekly averages 16 1 1 n EURO-DOLLAR DEPOSITS CALL OVER#WIGHT I I - - 12 i i : - x ] h T \ w l l i k P t y V - vvy FEDERAL FUNDS 1 i - - EURC1-DOLLAR OVER FEDERAL FUNDS f VVv i : I i I 1 M 1 I l \/Hr L VV l/V II I I I L J M r 1 1 1 1 1 1 1 11 , i 1 ! 1 1 II : % . } VV W 1 1 1 1 1 1 1 1 1 11 EUROCURRENCIES Weekly averages Per cent per annum 12 EURO-SWISS FRANC l I I I I 1 1 1 1 II 1l I 1II I I I M J S D 1969 M J S 1970 * May 10. 1971 - Changed to Overnight Euro $ Deposits. D K J 1971 S D M J If 1972 S D :ALL MONEY RATES iELECTED FOREIGN AND EEC CURRENCIES Per cent per an riday figures 12 8 FRANCE 4 i u ^ l i ! i i I i i 1 ! i i i i ' i v y • v NETHERLANDS i i i l 1i I 1 l l I I I I I I I I 0 8 4 0 12 8 4 0 ance. Day to day Mcney, Netherlands. Call Money. * e e n , . ^ p - j g e Japan. Unconditional Money, inada. Day to day Loans, weekly average. Germans i »>y U K . 2 day Local Authority Deposits j LONDON: EURO DOLLAR DEPOSIT RATES Friday figures 25.50 1-MONTH 7-DAY I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 2 M J S D M 1969 J S 1970 D M J S 1971 D M J S D 1972 *May 12/71 -changed to Overnight Euro-Dollar Deposits # # July-1-changed to 7 Day Euro-DoMac 4 LONDON: EURO DOLLAR DEPOSIT RATES Friday figures Per cent per annum N\f AN fa A / r V // J I X 6 - M O N T Fi A A VKJfz-HOKTH 1 1 1 M ! 1 1 1 1 1 i i ! i i 1 i i 1 i i I I 1 1 1 1 1 1 1 1 1 J 19$9 1970 1971 S D i V V i 1 i M i I i J 1972 i 1 i S i D Chart 7A NEW YORK-LONDON: YIELDS ON U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per 12 10 EURO DOLLAR DEPOSIT 8 6 4 U S. CERTIFICATE OF DEPOSIT 2 DIFFERENTIAL FAVOR EURO DOLLAR 4 2 + 0 EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT J s D 1969 M J 1970 S 0 M J 1971 s D M S 1972 0 2 KV c NEW YORK-LONDON: COST OF U S. DOLLAR FUNDS 3-month d o l l a r deposit r a t e s - p r i m a r y m a r k e t Wednesday figures Per cent per annum EURO DOLLAR DEPOSIT i ADJUSTED EURO-DOLLAR DEPOSIT U S. CERTIFICATE OF DEPOSIT I ADJUSTED EURO-DOLLAR OVER V U S. CERTIFICATE OF DEPOSIT D 1969 M S 1970 * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * * A d j u s t e d for 20% Marginal Reseive Requirement s D 1971 D M J 1972 D LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS H I R E P U R C H A S E A N D EURO-DOLLAR RATES Friday figures Per cent per 12 EURO DOLLAR DEPOSIT 9 6 HIRE PURCHASE COVERED 3 + 0 FAVOR MIRE PURCHASE t 0 3 6 9 FAVOR EURO DOLLAR differential M J S D 1969 M J 1970 S D M J 1971 S D M J 1972 S D \ Chart 8B LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS l o c a l a u t h o r i t y and euro d o l l a r rates Friday figures Per cent per annum EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT • COVERED FAVOR LOCAL AUTHORITY FAVOR EURO DOLLAR J J 1969 1970 1971 1972 Chert 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum 1 3 M O N T H TREASURY B I L L RATES I I M I 1 i 1 I J l S I I I 1 l D M l I 11 J 1969 # Plotted for comparison purposes I l l S 1970 1 I D I I M l I I J i I I 1 I 1 I I D I S 1971 1 I I I I I J 1 I J I I S 1972 I I O I 2 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Per cent per annum r a t e d i f f e r e n t i a l an sterling DISCOUNT 1I I 1 I 111I 1I I I I 11I I FAVOR LONDON differential FAVOR NEW YORK , 1 . 1, 1; 11I 1i 1I 1111 M J S 1969 D M J 1970 S D M J S 1971 D M J S 1972 D Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK f r a n k f u r t i n t e r b a n k l o a n r a t e vs. l o n d o n e u r o d o l l a r r a t e Wednesday rates Per cent per annum in t e r m s o f dm - - G E R M A N INTERBANK LOAN RATE EURODOLLAR COVERED differential FRANKFURT 0 1969 — — —No quotation J 1970 s 0 I ! 1 1 _1_J—L J 1971 S 0 FAVOR EURODOLLAR M J 1972 S 0 Chart 10B 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC z u r i c h d e p o s i t r a t e vs. l o n d o n e u r o d o l l a r r a t e Wednesday rates Per cent per annum in t e r m s o f swiss f r a n c s EURODOLLAR COVERED SWISS DEPOSIT RATE FAVOR ZURICH differential S D 1969 1970 D J 1971 s D M S 1972 2 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures Per cent per j 10 - b i l l rates • .CAM. FIN. CO. PAPER 6 UNITED STATES TREASURY BILLS TREASURY 4 2 b i l l r a t e d i f f e r e n t i a l and f o r w a r d canadian d o l l a r ,.V T A F O R W A R O RATE 2 , + 0 GROSS SPREAD IN FAVOR OF CANADA 2 DISCOUNT covered rate differentials 2 TREASURY + 0 2 FAVOR CANADA 2 PRIME FINANCE PAPER •f 0 S D 1969 M J 197c S D S M 1971 D M J 1972 S D ClWt 12* SELECTED SHORT-TERM INTEREST RATES* j - V i - 6EMMIIV V IA -V1 -V^r-A L V <w. UJC wv - l l I*. h 1 1 1 1 1 1 1 1i i1111 1 111 i 1 i i 1 1 1 1 1 1 1 1i n1 1 i i 11 i i 1 i i - V - Jl fAN V yV i ' T f - \\Ui r CANADA s. /V V / x^ " i i I i i 1 i 111 i 1 1 1 1 1 1 1 11J 11 11 i 1 1 i 1 11J1J I1I 1 1 1 1 1 1 196# 1111 111111J1111 1970 • 3-month treasury Mt ratestaraN countries wnpt Jmpam(Aw#rm## rate on bank loans and »» coats) and Germaarflatarfeanfc teen Nate) 1971 Chart 128 SELECTED SHORT-TERM INTEREST RATES* Per cent per annum EURO DOLLAR - LONDON SWITZERLAND 1968 1970 * 3-month treasury c>< -ate tor U S , Switzerland-3 month deposit rate * * 3-month rate *0' U S dollar deposits in London 1972 Chart 13 LONG-TERM BOND YIELDS Weekly figures Per cent per annum 10 Monthly ttgufes 1968 1969 1970 1971 1972 * M e « series lor Switzerland starts 6 2-68. U S Corp Dollar £i*rc Bonds and U S Corp DM Euro-Bonds starts 1270 * * We* Average yield o# all German PA Bonds M#*ns 1 7-69 * * * New series F starts 12 71 CHART 14 INDUSTRIAL STOCK INDEXES UNITED STATES 1 1 1 1 1 1 1 1 1 1 1 I I 1 i M V i I 1 I I 1 1 1 1 1 1 1 1 1 1 1 SWITZERLAND ^ V ! 1 1 1 1 1 1 1 1 1 1 1 — VZ 360 UNITED KINGDOM 240 160 JAPAN 360 GERMANY 240 CANADA 160 1969 1970 1971 * Japan index of 225 industrial and other stocks traded on Tokyo exchange * * Japan index of all industrial and other stocks traded on the first section of the Tokyo Stock Exchange. 1972 H. 13 Mo. 570 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES In Effect Since In Effect Since Previous Rate An March 2. 1972 6 5 F . h . 5 . 1972 S 75 A n r t l 6. 1973 6.0 J*n. 13. 19 72 3.0 Feb. 25. 1972 6.0 D~. 6.0 Ap-41 lHj IQ: J 6 < n Mnwli 1 . 1473 6.5 f»«- 6 . 1972 3. 75 S»pt- 15. 191 3-0 M v 6.0 June 5-0 S»nt. 3. 1971 Current Rate EEC.: Belgium France Gemany Italy Netherlands Switzerland United K i n g * * Canada Japan United States L 22.197 23. 1971 1071 10. 1967 6.75 9S, 5-25 F*h. 26. 1971 4.25 June 26. 1972 6.75 A n r . 2 9 . 1971 4.59 I W r , 11.-1321.. 4.75 Hmr. 11. 1971 1071 L A T E S T FIGURES P L O T T E D ON T H E CHARTS Chart Panel 1A Upper Series Swiss franc August 4 U.K. pound Lower Upper IB Rate Date Actual rate French franc Japanese yen +2.300 Belgian franc +2.300 40.050 Italian lire Lower Canadian dollar 2A Upper 2B Lower 3A 3B 4 i Upper 5A Actual rate 101.74 German mark +1.400 Dutch guilder +1.500 German mark + 4 . 70 Swiss franc +4.49 U . K . pound -3.42 Dutch gui Ider +4.98 Canadian dollar -0.04 French franc +0.89 Japanese yen n.a. German mark +8.09 U.S. dollar +3.16 Swiss franc +6.04 French franc +3.63 Gold price, U.S. dollar per ounce Aug. 4 Overnight Euro-$ deposits Aug. 2 Federal Funds i! . Middle Differential Lower Euro-currencies | I 1 f" «« Euro Swiss Fr. Upper 53 | I Lower 7.25 Aug. +2.69 4 -0.25 +0.25 " Japan, Unconditional Money Tulv 28 U.K., 2-day Local Author. Deps. Julv 21 7.81 Canada, Day-to-day Loans Aug. 2 Aug. 4 3.75 3 . 75 Julv 14 0.69 • France. Day-to-Day Money |- Germany. Call Money 1 Netherlands Call Money 69.02 4.56 Euro DM | +1.700 2 4 4 . 78 +2.200 4.25 4.12 IV - 3 Chart Panel 6A Series Euro-S Rate Date 7-Day Rate Aug. 4.81 4 Euro-S 1-month Rate 6B 5.25 Euro-S 3-month Rate 5.38 Euro-S 6-month Rate 7A Upper Euro-S 3-month D e p o s i t s 5.94 Aug. 2 5.44 U.S. C e r t i f i c a t e of D e p o s i t s 7B Lower Differential Upper Euro-S 3-month D e p o s i t s 4.68 + 0 . 72 5.44 Euro-S 3-month D e p o s i t s ( A d j . ) - 6.80 U.S. C e r t i f i c a t e o f D e p o s i t s ( A d j . ) Lower 4.86 D i f f e r e n t i a l : on A d j . Euro-S Deposits +1.94 on Unadj. Euro-S D e p o s i t s 8A Upper Euro-S 3-month D e p o s i t s 40.58 July 5.75 21 Hire Purchase D e p o s i t s (covered) 8B Lower Differential Upper Euro-S 3-month D e p o s i t s 4.85 -0.90 5.75 L o c a l A u t h o r i t y D e p o s i t s (covered) Lower U.S. Treasury B i l l rate 9A 4.41 Differential -1.34 Aug. 4 3.74 U . K . Treasury B i l l rate L o c a l A u t h o r i t y Deposit (uncovered) 9B Upper Spread (+= favor London) 5.71 July 21 Aug. 4 8.44 +1.97 3-month Forward Pound Lower Net Incentive ( + - favor London) -3.59 i -1.62 IV-4 Chart Panel 10A Upper Series Rate Date Euro-* Deposits (covered) AUK. 2 German Interbank L o a n r a t e 106 Lower Differential Upper Euro-S D e p o s i t s ( c o v e r e d ) 4-3.97 0.99 Swiss Deposit rate 11 0.78 4 . 75 Lower Differential Upper C a n a d i a n F i n a n c e Paper 2.00* +1.01 Aug. 4 U.S. Treasury B i l l rate 5.00 3.74 Canadian Treasury B i l l rate 3.40 U.S. P r i m e F i n a n c e paper (not plotted) Second 4 . 75 B i l l rate differential -0.34 Forward Canadian dollar 12A Third N e t i n c e n t i v e on b i l l s Bottom Net i n c e n t i v e on Finance Paper Upper U . K . Treasury B i l l rate -0.16 -0.50 +0.09 Aug. 4 5.71 Aug. 2 4.75 4 3.40 U.S. T r e a s u r y B i l l r a t e German Interbank L o a n r a t e Lower Japanese Average rate Canadian Treasury B i l l rate 3 . 74 7.191 May Aug. U.S. T r e a s u r y B i l l r a t e 126 Euro-S D e p o s i t s S w i s s 3-month D e p o s i t r a t e U.S. T r e a s u r y B i l l r a t e „ „ 3 . 74 5.38 2-00p » Chart Panel Series 13 Upper Netherlands Canada J u l v 14 6 . 75 Aug. 7.25 Middle * Germany United Kingdom Lower 14 Upper U.S. Corp. Dollar Euro-bonds S e r l e s % 5.35 4 95 J u l y 91 7 99 Julv 28 9.51 June 8.19 11 6.88 U.S. Corp. Aaa bonds II 7.23 Switzerland United States AUK. 4 460.4 Aug. 31 310.0 Aug. 4 United Kingdom Canada Lower Tuly ?A U.S. Corp. DM Euro-bonds Germany Middle 2 „ United States Switzerland Rale Date Japan 248.52 293.21 Julv 2 7 257.35 Julv 2 9 675.72 United States Aug. 4 * New - Average yield of ALL German Public Authorities bonds made as of banking key days. 248.52 Begiming week ended September 5, 1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Stock Exchange.
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