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D e c i s 4- S.O., 19 7 3- / J » r . S 9 9 * 5 m •i«i «l !•>—*i>ad FiMM* t w p i eei fcHI* CoummmMi ! SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS S O W OF GOVBMOKS OF THE FEDBEAL KfEtVE SYSTEM D e c i s 9 - ^ rf'f- & 9 TJkSLC OF COMTEMTS PART I. EXCHANGE RATES AMD GOLD PRICES / >-~' " ''Chart 1A and 6 - Spot Exchange Rales, Major Currencies igainrt U S Dollar VChart 2A and 8 - 3-Month Fomrard Exchange Rates Major Cureencies agiinrt U.S. Doltir vthart3A and B - 3-Month Forward Exchange Rates, Majof Cuneecies against U.K. Pound •/Chart 4 - Gold Price ki London PART II. SHORT-TERM INTEREST RATES vdiarlS f * - Call Money Rates yChart 6A and 8 - London: Euro-S Deposit Rates vChart 7A and 8 - Mew York - London: Yields on U.S. Dollar Funds vChart 8A and 8 - London: Covered Yields on U.S. Dollar Funds vChart SA and 8 - Interest Arbitrage: United States-United Kingdom ^Chart 10A and 8 - Interest Arbitrage: U.S.-Germany and U.S.-Switzerland vChart 11 - Interest Arbitrage: United Steles-Canada /Chart 12A and 8 - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AMD STOCK INDICES VChart 13 VChart 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 polished under that title through December 1966. , The changes in the format and order of the charts are erplaiaad in the Supplement to the series, iriiich accompanied issue dated January 1 , 1 * 9 All series and their sources are fully described in a Supplement dated January 1,1972. X ' Chart 1A SPOT EXCHANGE RATES MAJOR CURRENCIES AGAINST U S DOLLAR Weetvy averages Per cent GERMAN MARK I A. FOUND US SWISS FRANC DUTCH GUILDER YEN 1 V . 1972 S D w J 1*73 s J D Chart 16 SPOT EXCHANGE RATE - MAJOR CURRENCIES A6AMST W* DOLLAR Weekly averages j / a At V \ laELGumftumc Vv /fTAUMf LIKA 1 I 1 1 1 1 M 1 J 1 1 1 S i 1 i 1 i i 1 i i 1 i i t J 0 197S 1972 Ratio scale. U S cents Ratio scale, U S cents -\ CAMADUm DOLL** - VK.POMD 260 - L I 240 j h i ! ! : : i j s ! : L-i-J 1 ! 1 i 1 1 M i 1! ' M i-U D 1970 W J 1971 S D W i II S 1972 O 1 1 1 II « J 11J i-US l»> O SPOT EXCHANGE RATES 11, 1971 - De 1971 Financial franc \>° 3 MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U S DOLLAR Weekly averages Per cent per annum UJC. POUND DISCOUNT 1 J„L i J i - L - i J € Liin-it-c fv Bar:*- o' Canada Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.S. OOULA* Weekly averages Per cent per annum SWISS FRANC FRENCH FRANC 1970 1972 1971 JAPANESE YEN 24 S D MM * Devaluation o< the French frame tf otr. 4 94 to 5 55 tor Si 00 * * Wo quotation * J 1972 s D Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJL POUND Per ve r, i Friday figures a*1 PREMIUM US. DOLLAR S 1970 D W J 1971 S D M J 1972 s D M S 1973 D Chart 36 3-flflONTM F0RWA8D EXCHMICE - MAJOR Friday figures A6AW$T VJL POVUD Fer cent per aonuei I* DISCOUNT - w GOLD PRICE IN LONDON. 12.5 Kg BARS Week's average of afternoon fixings U S 4oUsr per tec ottoc* $0 I I I I I I 1I I I "1*0^ . Ut CHART 5A CALL HOMEY RATES DOLLAR FUNDS Weekly averages Per cent per annum 16 EURO-DOLLAR DEPOSITS CALL OVERNIGHT 1 1 EURCI-DOLLAR OVER FEDERAL vVXvijv/ r ; 1i•i 1 iw V n vh" I r [/v * i i i l l , EURO-CURRENCIES W € i y ? .-ercff „ i j i , 1 1 1 . 1 1 1 1 ! 1 ! 1 i ! 1 : : i 1 i i Per cent per annum 12 EURO-SWISS FRANC 1 I I F 1 I I 11 I I May 10. 1971 - Changed to Overnight Euro $ Deposits Chart 5 6 CALL MONEY SATES SELECTED FOREIGN MK> EEC CURRENCIES ffW# figtwes Per cent fc*r anourr 12 I a i n j v v - i \ V / - w 1 1 1 1 1 1 1 1 1 1 1 M J S 0 lttt i i M 1 i i ! i i 1 i l -1 1 1 1 1 1 I I I . I I J 1970 France, Day to day Hooey; ftetbertaods. Call Honey, weekly average japan. Unconditional Money; Canada. Day to day Loans, weekly average Offmany Call Money; U K . 2 4 a y Local Authority Deposits i M i-1-1 J 1 1 . -qoV I Chart 6A LONDON. EURO DOLLAR DEPOSIT RATES Friday figures Per cent per annum 125.50 CALL 17 DAY I : i ; i i 1 i i I : i 1 i i I i i I M C M J 1971 * M a y 12/71-changed to Overnight Euro Dollar Deposits * * July 1 —changed tc 7 Day Euro-Dollar S C M J 1972 I I I I S D 2 Chart 68 V LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures Far ceet Ik A /i r V / i \ At v v A iU A 1 jfl V i i 1 i i M 1 i i J S 1969 1 i I 1 1 1 1 1 1 1 I I D M J S 1970 1 I I D i M i 1 i J i 1 i S 1971 i 1 i D i i i V i M i i i i J S 1972 i i I I O eeewe m f YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES—SECONDARY MARKET ##*«* Per cent per DIFFERENTIAL FAVOR EURO-DOLLAR EURODOLLAR OVER U.S. CERTF1CATE OF M J S D 1969 M J 1970 S o M 1 1971 S 0 M J 1972 S D ctwt 79 NEW YORK-LONDON: COST OF US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Wednesday figures Per cent per ADJUSTED EURODOLLAR DEPOSIT US. CERTIFICATE Of DEPOSIT I 1 ' j / ** Mi A / Mul j V V ADJUSTED V / W k - VV\ v , EURO-DOLLAR OV1 R E V XA/1 J \ U/ 7 US. CERTIFICATE OF DEPOSIT ADJUSTED J ( / J S D M 1969 J S 1970 •Adjusted for Reserve Requirement * * Adiusted for 10% Marginal Reserve Requirement * * * A d | u s t e d for 20% Marginal Reserve Requirement r v ' 1 M i i ! i i 1 i i 1 i i1 1 1 1 1 I 1 M I1 1 I1 i M „ Vvv D M J i S 1971 i D J 1 1 1 1 1 I I M J 1 1 1 D 1972 Chart 8A LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS hire purchase and euro-dollar r a t e s Friday figures N f cm* per EURO DOLLAR DEPOSIT CD's FAVOR StERUNG CD's! FAVOR EURO-DOLLAR DIFFERENTIAL M j SS DD 1969 M M J J S S D 1970 * Hire.Purchase temporarily suspended as of August 11 * * Sterling Certificates of Deposit started as of August 11 D W M J J b 1971 SU DW M J J 1972 S D 4 Chart 88 LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO-DOLLAR RATES Friday figures p * e M t per i FAVGfl LOCAL AU1M0MVV FAVOR EUBO-OOLLA® differential 1969 1970 1971 1972 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum 12 3-month treasury b i l l rates DEPOSITS UNCOVERED NEW YORK S D M 1969 * Plotted lor comparison purposes J 1970 S l) M 1971 1972 owtse W T f l K S l A W m U O E ; IMMTED STATES A N D UNITED K I N G D O M 4 •ATE DFFEREIITIAL AND MWWTN FORWARD 2 + 0 2 4 # # w u 1 FAVOR LOWOOW 4 a e 2 4 S 0 FAVOR NEW YORK 1_L M J 1 M Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK F R A N K F U R T INTERBANK LOAN RATE VS. LONDON Wednesday rates EURO DOLLAR RATE Per cent per annum 14 IN T E R M S OF D M german interbank loan rate euro-dollar COVFKLD FAVOR FRANKFURT DIFFERENTIAL v J i i-i i M 1 1 1 _i v ! J. S 1 1- 1 1 1 I D 1969 No quotation V J 1970 -1 1- 1 1 1 - 1 -1 i 1 - L J J S D M J 1971 1 - - 1 0 I I M FAVOR EURO DO! LAR I 1 1 J-.J J 1972 S 0 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC zurich deposit rate vs. london euro d o l l a r rate Per cent per annum in terms of swiss francs SWISS DEPOSIT RATE i i ' i i i i i i i i i i j i 1 i i i i differential FAVOR ZURICH FAVOR tURO-OOliAR I 1 I I I I I I I I I I I I I I I I I I I No quotation Chart 11 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures 1 1 | M | 1 1 | Mi i | ii | ii | ii 11 | 1 1 | 1 1 |1 1 I i | m | m \ z » | m > - b i l l rates \ 5. . . \ " r \ 1. FM. CO. PAPER - UfMTEO STATES TREASURY W H S CAMADIAII TREASURY BIOS V f W \ f * r V \ memm b i l l r a t e differentia l and f o r w a r d canadmk d o l l a r AFORWARO R ^ F ^ i T v y ^ V w DC U T SOW I CROSS SPREAD M FAW M OF CANADA " c o v e r e d r a t e differi lntials fumcmwA 6URYWOS / ^ \w A / \ A /i A / VV\r\ rl , AAa \ y Jx MtfOtCMtffi* : FMAMCE PAPER t£__ v V" , #wo»v*~ I i-L i i 1 1 _JU 1 1 1 1 I I 1-1—L. 1 1 1 1 i 1 1 1 1 iM 1 i i i I 1 M j_l_L j 1SS# 1970 1971 m t i i * 1 I.J_ @ Chart 12A SELECTED SHORT-TERM INTEREST RATES* Per cent per annum j V. - i ,G1 ERMANY r V LV,/w. UK. / si M Iwv,- Vy i I V h lu i.s. n I fW J 1 1 ! 1 I i ! J i I I I I1 1 I I i 1 1 i 1 11 1 1 1 l 1 1 1 i 1 l 1 1 l l i l l i r i i f yP f Oii 11 i 11 i 1 i i JAPAN CANADA 1968 1970 * 3-month treasury bill rates for all countries except Japan(Average rate on bank loans and discounts) and G f manydnterbank Loan Rate) 1972 1* SELECTED SHORT-TERflf INTEREST RATES* Per cut EUAO-OOtLAIt - US. vm per awnum Chart 13 LONG-TERM BOND YIELDS Weekly Itgures p®, cent pet CANADA u.s. SWITZERLAND UJ(. U S CORP. DOLLAR EURO-BONDS U.S. CORP Aaa BONDS U.S. CORP. DM EURO-BONDS 1968 1969 1970 1971 * New series tor Switzerland starts 8 2 68. U S Corp Dollar Euro Bonds and U S Corp DM Euro Bonds starts 12-70. * * New Average yield of all German P A Bonds begins 2 7 69 CHART 14 1956 J-Z1 S(*K 200 MOUSTRUt STOCK UWTE0 STATES 1 111I I i 1111 i i 1 iW i i 1M i i i i i ! j i 1 i i 1 1 1 1 1 1 11 1 M x' j m w / | y - 1 — / . 240 v CMMM 1 11 1i I i 1111 1000 i i 1M 1 M 1070 1i i M 1 II 1 II 1071 * Japan mde* of 225 mtmtrial ether t t o c b i r * M ee Tokyo e*c#*an#e aatf * * Japan iMiiairirt—4 slecfcs !«•<•< ee llw first lecliwi e« * e \ y 111 J 11 111 111 1 i . 1072 Tefcye 8 1 * * E e d w i i * December 15 6 21, 1972 H. 13 Nc. 568 & 589 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate hi Effect Since Previous Rate 4.5 November 22# *72, 4.0 7.50 November 30, 1972 in Effect Since E.E.C.: Belgium France Germany 4.50 •i ii ii 6.50 4.00 March 2 , 197 Bov. 2 , 1972 •1 H II Italy h.O April 10, 1975 h.5 Oct. Ik, 1972 Netherlands 4.0 November % 1972 3.0 S e p t . 8 , 1972 Switzerland 3.75 Sept. 15, 196S 3.0 July 10, 1967 United Kingdom 7.75 Dec. 1, 1972 7.50 October 2% 197! Canada k.75 Oct. 25, 1971 5.25 Feb. 24, 1971 Japan k.25 June 2h, 1972 k.75 April 29, 1971 United States U. 50 Dec. 13, 1971 k -75 Nov. 11, 1971 ••Effective October 13, 1972, the Bank of England replaced its traditional Bank Rate with a fluctuating "minimum lending rate" based on average Treasury bill tender rate. December 8 , . . . . 8:00 iv-2 l a t e s t f i g u r e s p l o t t e d OH t h e c h a r t s Chart Panel Series 1A Upper Swiss franc U.K. pound A c t u a l rate French franc Japanese yen Lower IB Upper Canadian dollar German mark Actual Dutch guilder 2A 26 Upper Lower 3A 4 " " German mark Swiss U.K. pound Dutch gui Ider Canadian dollar French franc Japanese yen franc " •« Upper Upper Lower Dec, 1 +1.149 42.287 40.801 42.29< 40.74! 40.404 41.54 40.65 -2.89 41.43 40.24 -1.71 N.A. Dec. 8 «« Overnight Euro-S deposits Dec. 6 Dec. 13 Federal Funds •« «« Differential « « E'fO-currencies Euro DM 1 Euro Swiss Fr. M M " Japan, Unconditional Money U.K., 2-day Local Author. Deps. " " Canada, Day-to-day Loans Nov. 211Jec.6 France, Day to-Day Money ,3ec.8 Dec. IS Germany, Call Money Netherlands Call Money +* . 760 4-1 - 114 234.41 234.09 40.845 40.526 «• «• " «• •• « Dec. 1 " •« Rate 4 1 . 6 9 9 41.611 - 0 . 4 0 0 -0.262 1 0 0 . 1 3 100.17 Gold price, U S. dollar per ounce Dec. 8 j Dec. 15 j Middle Lower 56 Dec. 15 •• German mark U.S. dollar Swiss franc French franc 38 5A Dec. 8 *' •« •» Belgian franc Italian lire Lower Date 41.72 40.69 -3.17 +1.66 40.27 -2.02 43.87 42.46 42.69 41.08 44.68 42.57 42.61 40.87 63.16 6JU2X ^00 , 5U7 -0.17 4«6$_ 5,29 -0r60 4uOO„ 4.25 JLlflJ 3.90 : 4.38 7.62 3.75 4.62 7.50 3.80 1.53 7.12 7.75 2.48 ; < mk IV-3 Chart Panel Series 7-Day E u r o - t o e * * Rate 6A Rate Date ^ g 5- 00 5.00 „ 6 , 38 6.1S Euro-* 3-month Rate " 6.06 6.00 Euro ) 6-month Rate „ 6.19 6 . 1 9 •• 1 6.12 Euro-$ 1-month Rate 66 ~A Upper Euro-S 3-month Deposits ^ $ U.S. Certificate of Deposits „ Uppei E"tc-$ 3-month Deposits „ Earo-5 3-month Deposits (Adj.) „ U.S. Certificate of Deposits (Adj.) 76 Differential 13 De « Lower Dec,. 15 ,, Lower 5.28 Euro-S 3-ffloniii Deposits Lower Differential Upper Curo-S 3-montli Deposits 7.65 5.53 1 42- 12 40- 59 Dec 5-53 4-2.12 „ 24 6.12 7.65 „ Kov< 40.77 6.12 Differential: on Adj. Eiito-5 Deposits,, Upper 5.35 +0.86 cn Unadj. Euro-S Deposits 8A 6.12 40.59 5.69 6.10 5.25 8t Differential 5.69 ^ l > " . Treasury Bill rate Local Authority Deposit (uncovered) iw. 1 96 Upper Spread (+= favor London) Dec 15 Dec 8 Dec 15 „ ^ 8 5.1c -0.92 4.98 4.97 7.37 g 6.1C -0.75 M U.S. Tieasuty Bill tale 9A -0.61 4.94 Local Autliority Deposits (cowered), Lower 5.69 -0.44 7.33 8.25 8.56 42.39 4-2.36 3-month Forward Pound Lower •• -3.03 -3.49 Met Incentive (*= favor London) « « -0.64 -1.13 ^ 0 IV - 4 Chart Panel Series 10A Upper Ei*o-$ Deposits (covered) Dale Dec. 6 Dec. 13 Upper Euro-f Deposits (cowered) „ „ Swiss Deposit rale H Lower 11 Differential Upper Canadian Finance Paper ^ 8 Dec. 15 U.S. Treasury 0iff rale Canadian Treasury Bill rale U.S. Prime Finance paper (not plotted) 8.62 8.75 4-1.91 +619 5.60 5.45 4.00 4.00 -1.45 5.13 5.13 4.97 3.62 Differential 4.56 4.9* Lower 4.71 '1-60 G e m * Meitank Lean rale 106 Bale 3.59 «« 5.13 5.13 «« -1.36 -1,38 Second Forward Canadian dollar " *0.26 +0.24 Third Wet incentive on bills « -1.10 -1.14 Bottom 12A Bill tale differential Wet incentive on Finance Paper Upper U.K. Treasury Bill rale 40.26 German InteAank Loan rate Lower U.S. Treasury Bill rale Dec 8 Japanese Average rate Canadian Treasury Bill rale 128 6 Euro-S Deposits •• 7. 33 4.98 4.97 Dec. 13 8.62 8.75 October ^ 7. 37 .. U.S. Treasury Bill rale 40.24 •• 6.775 Dec. 15 3.62 3.59 " 4.98 4.97 » 6.06 6,00 4.00 4.00 f 4.98 4.97 Swiss 3 monft Deposit rale U.S. Treamwy Bill rale « IV - 5 Chart Panel Series 13 Upper Netherlands Dec. 1 Dec. 8 7.27 Canada Nov. 29 Dec. 6 6.56 United States Switzerland Middle Germany United Kingdom Lower 5.29 Nov. 30 8.50 Dec. 1 || U.S. Corp. Aaa bonds 14 Upper Switzerland * Germany United States Middle United Kingdom Canada Lower • • Japan United States 5.25 " Nov. 24 U.S. Corp. Dollar Euro-bonds Series F U.S. Corp. DM Euro-bonds Rate Date Dec. 8 9.80 October 7.89 „ 6.85 H 7.21 429.6 Dec. 1 Dec. 8 Dec. 1 Nov. 30 438.9 C Dec. 7 Dec. 1 L 292.2 Dec. 8 Dec. 15 289.6 ; < 267.70 2M 283.17 pec. 8 Nov. 30 Dec. 7 Hec. 2 Dec. 9 Dec. 8 Dec. 1 277.16 281.6 833.13 8:i; 267.70 21 ( * New - Average yield of ALL German Public Authorities bonds made as of banking key days. ** Beginning 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.
@FedFRASER