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— • — DEO H. 13 No'.Ma ! J J ~ n I 1 | BOARD OF (OVIRNOM FEDERAL ««•«»«« .YSTEM December 26, 1968. C APITAL4ttRKET| DEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H. 13 Chart Series, 1968 Ten Charts on Financial Markets Abroad Chart Chart 1 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London; Yields on U.S. Dollar Funds London: Yields for U.S. Dollar Investors on 3-Month Funds Interest Arbitrage: Fraakfurt/London, Zurich/London Interest Arbitrage: New York/Canada Interest Arbitrage: New York/London Short-Term Interest Rates Long-Term Bond Yields Spot Exchange Rates--Major Currencies Against U.S. Dollar 3-Month Forward Exchange Rates Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS 4N E W Y O R K - L O N D O N : YIELDS O N U .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 EURO DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T I E U R O D O L L A R O V E R U . S . C E R T I F I C A T E OF D E P O S I T C A L L EURO D O L L A R D E P O S I T RATE VS. U.S. FEDERAL F U N D S RATE CALL E U R O D O L L A R DEPOSITS * FEDERAL FUNDS T v 4 i E U R O - D O L L A R OVER FEDERAL F U N D S Mar. Jun. Sept. Dec. Mar. 1965 Sept. Dec. Mar. J tin. Sept. Dec. i Mar. Jun. 1968 1967 i Sept. Dec. L O N D O N : YIELDS EURO-DOLLAR FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DEPOSIT RATES 3 0 DAY CALL 1 8 0 DAY 9 0 DAY M J S D M 1965 J 1966 S D M S 1967 D M J 1968 S D • L O N D O N : YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS HIRE PURCHASE A N D LOCAL AUTHORITY DEPOSIT RATES (covered) EURO DOLLAR D E P O S I T , HIRE P U R C H A S E FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR EURO-DOLLAR EURO DOLLAR D E P O S I T LOCAL A U T H O R I T Y D E P O S I T FAVOR L O C A L A U T H O R I T Y DIFFERENTIAL j 1965 1966 1967 F / W O R EURO D O L L A R 1968 I INTEREST ARBITRAGE: FRANKFURT INTERBANK FRANKFURT/LONDON, LOAN RATE VS. ZURICH/LONDON LONDON EURO DOLLAR RATE (COVERED) IN | \ TERMS OF DM EURO-DOLLAR INTERBANK LOAN RATE ! DIFFERENTIAL ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS EURO-DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL j FAVOR E U R O - D O L L A R H PRICE OF GOLD IN LONDON 35.5 45 0 35.4 43.0 35.3 41.0 35.2 39.0 35.1 37.0 35.0 35.0 s M 1965 • Marl.I cloud March l i A p r i l I. 1968 S 1966 0 J 1967 s S D 1968 I N T E R S ! ARBITRAGE, U N I T E D STATES / C A N A D A Fridoy figures 3-MONTH TREASURY BILL RATES C A N . F I N . CO. PAPER UNITED STATES ,'VW CANADA ! BIL L RATE DIFFERENTIAL AND FORWARD C A N A D I A N DOLLAR I S P R E A D I N FAVOR OF C A N A D A F O R W A R D RATE : 3-MONTH ' ! COVERED r RATE DIFFERENTIALS (NET INCENTIVES) TREASURY BILLS PRIME F I N A N C E PAPER 1965 1966 1967 1968 1 INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3-MONTH TREASURY BILL RATES I U.K. LOCAL AUTHORITY DEPOSITS LONDON / NEW YORK 1965 1966 1967 1968 INTEREST RATE ARBITRAGE, DIFFERENTIAL NEW AND YORK/LONDON 3-MONTH FORWARD STERLING SPREAD IN FAVOR OF LONDON DISCOUNT RATE IN FAVOR OF LONDON IN FAVOR OF NEW YORK D I F F E R E N T I A L W I T H F O R W A R D E X C H A N G E C O V E R (NET I N C E N T I V E ) i : . i i i i 1 i I i i i i i ! i i i i- i i ; i i i i °\ SHORT-TERM INTEREST RATES* EURO-DOLLAR - LONDON t UK y U.S. /v—Vy SWITZERLAND 1 JAPAN ! CANADA I GERMANY 1964 1965 Switzerland (3-month deposit rale) and Germany 3 month role for U S dollar deposits in London 1966 .Interbank Loan Rate) 1967 1968 9 L O N G - T E R M B O N D YIELDS -NETHERLANDS CANADA U.S. SWITZERLAND I GERMANY U.K. % m E U R O D O L L A R BONDS 3 U . S . EURO DOLLAR B O N D S U.S. CORP. Aaa BONDS 1964 1965 1966 1968 -w C h a r t 8A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par SWISS FRANC / GERMAN MARK U.K. STERLING Below par Above par I DUTCH GUILDER u.s I FRENCH FRANC ! - JAPANESE YEN Below par S S D 1966 * Devaluation of the pound sterling from $2 80 to $2 40. 1967 D M J 1968 S D M J 1969 S D J p h a r t 8B SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.2 BELGIAN FRANC : ITALIAN LIRA CANADIAN DOLLAR Below par I M J s S D 1966 1 1967 D J 1968 s s D 1969 \ 3 Chart 9A 3 - M O N T H F O R W A R D E X C H A N G E RATES AGAINST U.S. DOLLARS-NEW YORK Friday figure? Per cent per a n n u m GERMAN MARK SWISS FRANC POUND STERLING DISCOUNT- T DUTCH GUILDER A / CANADIAN DOLLAR 4 — FRENCH FRANC ; M J S D D 1966 DISCOUNT- 1967 S 1968 D M J 1969 s D \ H Chart 9B 3 - M O N T H FORWARD EXCHANGE RATE jAGAINST POUND STERLING-LONDON Per cent per a n n u m PREMIUM + GERMAN MARK U.S. DOLLAR \/V V SWISS FRANC FRENCH FRANC ' 1966 1 k 1967 DISCOUNT— 1968 1969 I N D U S T R I A L STOCK INDICES l958 , 320 280 /1 I 240 SWITZERLAND 200 U.S. GERMANY 160 120 360 320 280 JAPAN 240 CANADA 200 US 160 120 1965 • $# 1966 Swits Bank Corporation industrial Hock index Japan: index of 225 industrial and other stocks traded on the Tokyo exchange 1967 1968 December 26, 1968 H. 13 No.382 II. a. Latest Figures Plotted in H. 13 Series (all figures in per cent per annum) Chart 4 Chart 1 Dec. 18 Upper Panels (Wednesday, ) Dec. 20 (Friday ) Treasury bills: Canada 7.00 Euro-$ deposit 5 .96 6.08 U.S. 6.25 U.S. certif. of deposit Dec. 18 Lower Panels (Wednesday, Call Euro-$ deposit 6.46 Federal Funds 5.95 ) Forward Canadian dollar -0 .43 Net incentive (Canada + ) -0,.55 Canadian Finance paper (Dec. 13) Euro-$ deposits (Friday, m w r r PanH Dec. 20 ) Call 7.38 30-day 7.50 90-day 7,94 180-day 7.25 U.K. Local Authority deposit 7,,81 Treasury bills: 6. 63 6.08 U.K. U.S. Chart 5B Spread (favor U.K. + ) -K).55 Forward rate -4. 13 Net incentive (U.K. +) -3.58 Chart 2B Hire-Purchase ( Dec. 13 Chart 6 ) 2.75 Upper Panel Local Authority ( Dec. 13 ) 2.63 Treasury Bills Euro-$ deposit ( Dec. 13 ) 7.06 (Friday, Dec. 20 ) U.S. U.K. Canada Euro-$ deposit (London) Chart 3 I. Upper Panel (Period: Dec. 16-23 ) Interbank Loan (micl-point) 4. 38 German Interbank loan rate ( Dec. 16-23 ) Euro-$ deposits (average) 2. 68 Zurich 3-month deposit (Dec. 15) Dec. 8-15 ) Zurich 3-mo. deposit 4.25 Euro-$ rate (covered) (Dec. 23) 6.09 II. Price of Gold (London) 41.50 (average-week ended Dec. 20) 6.08 6.63 5.96 7.31 Lower Panel Lower Panel (date: 6,,38 Chart 5A (Friday, Dec. 20 ) Chart 2A Upper Panel -0 .12 Spread (favor Canada + ) 4.38 4.25 Japan Composite Rate ( Oct. 31) 7.40 U.S. Treasury bills ( Dec. 20) 6.08 December 26, 1968 II. H. 13 No.382 b Chart 9A Chart 7 Upper Panel (Friday, U.S. Gov't. (Wed. , Dec. 18 ) 5.65 Dec. 20 Against U.S. dollars Upper Panel Netherlands Govt. (Fri., Nov.13) 6.53 Swiss francs +0.87 Canadian Gov't. (Wed., Dec. 11 ) 7.35 German marks +4.f £ sterling -4.13 Swiss Gov't. Composite (Fri. , Dec. 13) 4.32 Lower Panel Middle Panel German Fed., (Fri., Dec. 13 ) 6.21 U.K. War Loan (Thus. , Dec. 19) 8.06 Euro-$ bonds (Fri., 7.53 Dec. 20 ) Lower Panel ) 7.20 U.S. Corporate Aaa ( Oct. 31 ) .09 U.S. Euro-bonds ( Oct. 31 Chart 8A (Friday, Dec. 20 ) French franc -7.82 Dutch guilder +0.47 Canadian dollar -0.43 Chart 9B (Friday, Dec. 20 Against pound sterling Upper Panel German mark +8.82 U.S. dollar - +3.57 Lower panel' Upper Panel Swiss francs +1.80 German marks +0.,05 U.K. £ sterling -0.,68 Chart 10 (Index; 1958 = 100) Upper Panel U.K. ( Lower Panel French francs -0.,30 Dutch guilders +0.,27 Japanese yens +0.,59 Chart 8B (Friday, Dec. 20 Belgian francs Switzerland" Canadian dollars Italian lira +0. 16 13 1 —) jS Pr . 1 % ) Dec. 13 Japan ( ) 363.9 238.1 5 ) 226.0 Dec. 21 ) 297.7 For descriptions and sources of data, see Special Supplement No. 343-S Digitized for dated FRASER March 27, 1968. 278.0 255.6 258.6 Lower Panel Canada ( Dec. -0. 30 +0. 78 j Dec. 20 Germany ( Dec. 6 U.S. ( ) +4.17 +3.19 Swiss franc French franc
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