The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
OIVISIO^OF INTERNATIONAL FINANCE «.,y I O A N D OF 9 0 V I N N 0 R I „ ^ Viol . m o r ^ C 7^ - J L --CAPITAL MARKET DEVELOPMENTS ABROAD December 11, 1968. r.-tfen Charts on Financial Markets Abroad II. Latest Figures Plotted in H.13 onart Chart series, Series, 1968 i^oo r\ [\A(kxhjLX~ I. Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York, London: Yields on U.S. Dollar Funds 2 - London: Yields for U.S. Dollar Investors on 3-Month Funds 3 - Interest Arbitrage: Frai kfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-Term Interest Rates 7 - Long-Term Bond Yields 8 - Spot Exchange Rates--Major Currencies Against U.S. Dollar 9 - 3-Month Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MOUTHS N E W Y O R K - L O N D O N : YIELDS O N U . S . DOLLAR F U N D S 3 - M O N T H D O L L A R DEPOSIT RATES Wedneidav figure* E U R O D O L L A R DEPOSIT 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 CALL EURO D O L L A R D E P O S I T RATE VS. U.S. FEDERAL FUNDS RATE CALL EURO-DOLLAR DEPOSITS F E D E R A L FUNDS EURO D O L L A R OVER FEDERAL F U N D S Mar. Jun. Sept. Dec. Mar. 1965 Jun. 1966 Sept. Dec. Mar. Jun. 1967 Sept. Dec. Mar. Jun. 1968 Sept. Dec LONDON: YIELDS EURO-DOLLAR FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES 180 DAY 9 0 DAY M J D M 1965 i 1966 S D M J 1967 S D M J 1168 S D ' LONDON: YIELDS FOR U . S . HIRE PURCHASE A N D DOLLAR LOCAL INVESTORS O N AUTHORITY DEPOSIT 3-MONTH RATES 1 1 FUNDS (covered) EURO-DOLLAR DEPOSIT, HIRE P U R C H A S E FAVOR HIRE P U R C H A S E FAVOR E U R O D O L L A R ] 8 EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL A U T H O R I T Y DIFFERENTIAL F/tVOR EURO DOLLAR 1965 1966 1967 1968 < I INTEREST ARBITRAGE: 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 V S . L O N D O N EURO-DOLLAR RATE ( C O V E R E D ) I N TERMS OF D M t EURO-DOLLAR I N T E R B A N K LOAN RATE FAVOR FRANKFURT DIFFERENTIAL FAVOR E U R O D O L L A R Z U R I C H D E P O S I T RATE V S . L O N D O N EURO D O L L A R RATE ( C O V E R E D ) | I N TERMS OF S W I S S F R A N C S .EURO D O L L A R S W I S S DEPOSIT RATE T DIFFERENTIAL T FAVOR EURO-DOLLAR H PRICE OF G O L D I N LONDON 35.5 45.0 35.4 43.0 35.3 41.0 35.2 39.0 35.1 37.0 35.0 J 1965 * S 0 Market closed March 15 April 1, 1968 M 1 1966 S 0 35.0 S M 1967 1968 INTERS! ARBITRAGE, Friday figures 3-MONTH TREASURY UNITED BILL STATES / C A N A D A Per RATES CAN. F I N . CO. P A P E R UNITED STATES r/v\ I CANADA " ' ' ' I BILL RATE D I F F E R E N T I A L ' AND ! FORWARD 1 CANADIAN DOLLAR S P R E A D I N F A V O R OF C A N A D A FORWARD RATE DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET TREASURY INCENTIVES) FAVOR C A N A D A BILLS PRIME FINANCE PAPER FAVOR C A N A D A 1965 1966 1967 1968 1 INTEREST A R B I T R A G E , N E W 3-MONTH YORK/LONDON TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS I LONDON M J s D M 1965 J 1966 S D M J 1967 S s D 1968 D « • INTEREST RATE ARBITRAGE, NEW DIFFERENTIAL AND YORK/LONDON 3-MONTH FORWARD STERLING " SPREAD IN FAVOR OF L O N D O N PREMIUM | DISCOUNT FORWARD RATE DIFFERENTIAL WITH IN FAVOR OF L O N D O N IN FAVOR OF N E W FORWARD 1965 1966 EXCHANGE RATE *1 YORK COVER (NET 1967 INCENTIVE) 1968 2 <?V S H O R T - T E R M INTEREST RATES* EURODOLLAR - L O N D O N t ^ ' 7U.K U.S. — SWITZERLAND 9 JAPAN CANADA | GERMANY 1964 1966 1965 >3monlh Ireosury bill r a i d lor all countries except Japan (Average role on bank loam and ducounti) Switzerland (3 month depont rate) and Germany "j" 3 month role for U S dollar depoiiti in London Interbank loan Rote) 1967 1968 NETHERLANDS M Chart 8A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.6 SWISS FRANC / GERMAN MARK d"if S U.K. STERLING Below par Above par ,1 DUTCH GUILDER I FRENCH FRANC , JAPANESE YEN Below par 1966 Devaluation of the pound sterling from $2 80 to $2.40 1967 1968 1969 < Chart 8B SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Per cent Above par BELGIAN FRANC ITALIAN LIRA CANADIAN DOLLAR ! 1 Below par S M D M 1966 J 1967 S D M S 1968 D S 1969 D 3-MONTH FORWARD EXCHANGE RATES AGAINST U.S. D O L L A R S - N E W YORK Friday figures Per cent per an GERMAN MARK SWISS FRANC y POUND STERLING DISCOUNT- PREMIUM DUTCH GUILDER A/ CANADIAN DOLLAR FRENCH FRANC DISCOUNT— M S D S M 1966 1967 S 1968 D M J 1969 S D Chart 9B 3-MONTH FORWARD EXCHANGE RATE AGAINST POUND S T E R L I N G - L O N D O N Friday figures Per cent per PREMIUM GERMAN MARK W U.S. DOLLAR V SWISS FRANC FRENCH FRANC DISCOUNT — S S M 1966 1967 D S M 1968 D D 1969 INDUSTRIAL STOCK INDICES 1958100 360 320 280 240 SWITZERLAND 200 U.S. GERMANY 160 U.K.! 120 360 320 280 JAPAN 240 CANADA, 200 U S 160 120 1965 * »* 1966 Swiii Bonk Corporation induitrial stock index Japan index of 225 induitrial and other itockt traded on the Tokyo exchange 1967 1968 IT December 11, 1968. (all figures in per cent per annum) Chart- '+ Chart 1 Upper Panels (Wednesday, ) Dec. 4 6.88 Euro-$ deposit (Friday, Lower Panels (Wednesday, 6. 15 ) Dec. 4 6.52 Call Euro-$ deposit 5.54 Spread (favor Canada + ) -0. 08 Forward Canadian dollar -0. 30 Net incentive (Canada + ) -0.38 ) Dec. 6 Call 6.56 30-day 7.38 90-day 7.06 T.owpr Panel 7.88 Treasury bills: U.K. 6.69 U.S. 5.62 Spread (favor U.K. +) + 1.07 Forward rate -4. 80 -3/73 Net incentive (U.K. +) Chart 2B Local Authority ( ) U.K. Local Authority deposit Chart -5B 7.00 180-day Hire-Purchase ( Nov. 29 n.a. Charl 5A (Friday, Dec. 6 Chart 2A Euro-$ deposits (Friday, 5.62 Canadian Finance paper 5. 71 Federal Funds Euro-$ deposit ( ) U.S. U.S. certif. of deposit Upper Panel Dec. 6 Treasury bills: Canada C h a»r L (1 ) 4. 00 Upper Panel (Friday, Treasury Bills Nov. 29) 3.94 Nov. 29 ) 6.94 Dec. 6 5.62 6. 69 Canada 5.54 Euro-$ deposit (London) Chart 3 ) I; Upper Panel (Period: Dec. 1-7 ) U.S. U.K. 7.06 Lower Panel Interbank Loan (mid-point) 4.56 German Interbank Loan rate ( Dec. 1-7 ) Euro-$ deposits (average) 3.33 Zurich 3-month deposit (Nov. 30) 4.25 Lower Panel (date: Nov. 24 -30 Zurich 3-mo. deposit ) 4. 25 Euro-$ rate (covered) fOec. 7 ) 5.62 II. Price of Gold (London) 40.36 (average-week ended Dec. 6 ) 4.56 Japan Composite Rate ( Sept. 30 ) 7.43 U.S. Treasury bills ( Dec. 6 )5.62 H. 13 No. 380 II. b December 11, 19 Chart 7 Chart 9A Upper Panel - U.S. Gov't. (Wed. , Dec. 4 (Friday, ) 5. 64 Dec. 6 Against U.S. dollars Upper Panel Netherlands Govt. (Fri. , Nov. 13 ) 6. 53 Canadian Gov't. (Wed., Nov. 27) (Wed., Dec. 4) Swiss Gov't. Composite (Fri. , Nov. 29) 7. 12 7.27 4. 34 +4.02 £ sterling -4. 80 Lower Panel Middle Panel German Fed. , (Fri. , Dec. 6 ) 6.21 U.K. War Loan (Thus., Dec. 5 ) 8.01 Euro-$ bond's (Fri. , Dec. 6 ) 7.53 ) 7.20 U.S. Corporate Aaa ( Oct. 31 ) 6.09 Lower Panel U.S. Euro-bonds ( Swiss francs German marks Oct. 31 Chart 8A Dec. 6) (Friday, Swiss francs + 1.64 German marks +0. 23 Canadian dollar - 0 . 30 Chart 9B TJec. 6 (Friday, Against pound sterling Upper Panel German mark +8. 85 U.S. dollar +3. 84 Swiss franc French franc +5.23 +1.45 Chart 10 (Index; 1958 = 100) Upper Panel U.K. £ sterling U.K. ( Lower Panel -0. 35 Dutch guilders +0. 25 Japanese yens +0.56 -0.33 Canadian dollars +0. 68 Italian lira +0. 14 Dec Germany ( - 6 ) Nov. 29 Switzerland ( Dec. 6 259. 0 ) 361.0 Dec. 6 ) 239. 1 Canada ( Nov. 28 ) 225.0 Japan ( Dec. 7 ) 301.7 For descriptions and sources of data, see Special Supplement No. 343-S dated March 27, 1968. 272.8 ) Lower Panel U.S. ( Chart 8B (Friday, Dec. 6 ) Belgian francs -7.31 + 0 . 91 Lower panel Upper Panel French francs French franc Dutch guilder
@FedFRASER