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V H. 13 No. 379 December 4, 1968 CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 OatJiTa ( ' 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: Fran kfurt/London, Ziirich/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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS <f I NEW Y O R K - L O N D O N : YIELDS O N U.S. 3 - M O N T H DOLLAR DEPOSIT RATES DOLLAR FUNDS Wednesday figures P« EURO DOLLAR 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 CALL EURO-DOLLAR DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE CALL EURO-DOLLAR D E P O S I T S Mar. Jul. Sept. Dec. Mar. 1965 Jew. 1966 Sept. lec. Mar. Jew. 1967 Sept. Dec. Mar. Jua. 1968 Sept. Dec. LONDON: YIELDS EURO-DOLLAR Friday figures FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES 3 0 DAY CALL 1 1 0 DAY 9 0 DAY s M D M 1965 J 1966 S D M J 1967 S D M J 1968 s 0 1 LONDON: YIELDS FOR HIRE PURCHASE A N D U.S. LOCAL DOLLAR INVESTORS ON AUTHORITY 3-MONTH D E P O S I T RATES FUNDS (covered) EURO-DOLLAR DEPOSIT, HIRE P U R C H A S E T FAVOR HIRE P U R C H A S E DIFFERENTIAL FAVOR EURO-DOLLAR EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY DIFFERENTIAL FflfOR EURODOLLAR 1965 IMS 1117 1968 <, ' I INTEREST ARBITRAGE: FRANKFURT F R A N K F U R T / L O N D O N , INTERBANK LOAN RATE VS. Z U R I C H / L O N D O N LONDON EURO DOLLAR RATE (COVERED) IN J \ LOAN RATE VS. LONDON EURO DOLLAR DM RATE DIFFERENTIAL DEPOSIT OF EURO-DOLLAR INTERBANK ZURICH TERMS RATE FAVOR FRANKFURT SWISS FRANCS (COVERED) i IN TERMS OF ; -EUIO-BSLLAR ™ SWISS DEPOSIT RATE ' FAVOR ZURICH DIFFERENTIAL FAVOR n PRICE OF GOLD IN EURODOLLAR LONDON 35.5 45.0 35.4 43.0 35.3 41.0 35.2 39.0 35.0 35.0 37.0 S M D 1965 * Morlel closed Morch 15-April 1. 1968 • J 1811 $ I 1117 1961 INTERS! ARBITRAGE, 3-MONTH TREASURY UNITED BILL STATES / C A N A D A RATES C A N . F I N . CO. P A P E R UNITED S T A T E S CANADA BILL RATE DIFFERENTIAL AND FORWARD C A N A D IA N^IDO LL A R S P R E A D IN FAVOR OF CANADA F O R W A R D RATE DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET T INCENTIVES) 1 FAVOR CANADA TREASURY BILLS PRIME FINANCE PAPER FAVOR U.S. FAVOR CANADA 1965 1966 1967 1968 1 INTEREST ARBITRAGE, 3-MONTH TREASURY NEW YORK/LONDON RATES U.K. LOCAL AUTHORITY D E P O S I T S l I I l l I 2 a INTEREST RATE ARBITRAGE, DIFFERENTIAL NEW AND YORK/LONDON 3-MONTH FORWARD STERLING S P R E A D IN F A V O R OF L O N D O N PREMIUM DISCOUNT FORWARD RATE < Y \ 2 IN F A V O R OF L O N D O N IN FAVOR OF N E W Y O R K RATE DIFFERENTIAL WITH FORWARD 1965 1966 EXCHANGE COVER (NET 1967 INCENTIVE) 1968 a S H O R T - T E R M INTEREST RATES* EURO DOLLAR - LOND0N t [ TU.K V™ SWITZERLAND- 9 JAPAN CANADA I GERMANY 1964 1965 1966 1967 1968 LONG-TERM BOND YIELDS -NETHERLANDS CANADA U.S. SWITZERLAND GERMANY U.K. EURO-DOLLAR BONDS U.S. EURO-DOLLAR BONDS S. CORP. A i a BONDS 1964 1965 1966 1967 1968 V: ' C h a r t 8A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.6 SWISS FRANC GERMAN MARK with U.K. STERLING Below par Above par DUTCH GUILDER U.S. ! J FRENCH FRANC - JAPANESE YEN I M J S D M 1966 'Devaluation of the pound sterling from $2.80 to $2.40. J 1967 S D M J 1968 s D M S 1969 Below p a r \r ' Chart 8B SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above p a r BELGIAN FRANC ITALIAN LIRA CANADIAN DOLLAR Below p a r J S D M 1966 J 1967 S D M j 1968 S D M J 1969 S D — V C h a r t 9A 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. D O L L A R S - N E W YORK Friday figures Per c e n t p e r a n n u m PREMIUM GERMAN MARK SWISS FRANC POUND STERLING DISCOUNT- DUTCH GUILDER A7 CANADIAN DOLLAR FRENCH FRANC DISCOUNT- J S M 1966 J 1967 S D S M 1968 S 1969 D Chart 9B 3 - M O N T H FORWARD EXCHANGE RATE AGAINST POUND S T E R L I N G - L O N D O N Friday f i g u r e s Per c e n t per a n n u m PREMIUM GERMAN S. DOLLAR SWISS FRAiNC u . . . AJ y i FRENCH FRANC j | DISCOIU N T 1 1966 1967 1968 1969 INDUSTRIAL STOCK INDICES l958100 R ot 10 scale' 360 320 280 240 SWITZERLAND 200 U.S. GERMANY 160 UK. 120 360 320 280 240 CANAIA 200 - X / U S 160 120 1965 * • » Swiss Bonk Corporation industrial slock inden Jopon index of 225 industrial and ether stoc 1916 1967 1968 December 4 , H. 13 No. 379 II. Chart a . L a t e s t F i g u r e s P l o t t e d i n H. 13 S e r i e s ( a l l f i g u r e s i n p e r c e n t p e r annum) Chart 4 1 ( W e d n e s d a y , _ Nov. Upper P a n e l s certif. 27 ( W e d n e s d a y , _ Nov. 27 Call Euro-$ deposit 6.38 F e d e r a l Funds 5.73 Chart Euro-$ deposits Upper P a n e l T.ower P a n e l Nov. Euro-$ deposit 29 Call 6.50 30-day 7.12 90-day 6.88 ) +0.02 Forward Canadian d o l l a r -0.32 -0.30 (Canada + ) 6.38 U.K. L o c a l A u t h o r i t y d e p o s i t 7.50 Treasury b i l l s : 6. 66 U.K. .U.S. 3.95 22 ) 4.02 ( Nov. 22 ) 7.00 Spread +1.18 ( f a v o r U.K. + ) Forward r a t e -3.54 -2.36 N e t i n c e n t i v e ' (U.K. + ) Upper P a n e l (Friday, Treasury B i l l s 24-30 ) Euro-$ d e p o s i t s 3.85 Z u r i c h 3-month d e p o s i t Z u r i c h 3-mo. d e p o s i t Euro-$ r a t e II. (covered) 16-23) 4.25 ( N o v . 30 ) P r i c e of Gold ( L o n d o n ) ( a v e r a g e - w e e k ended Nov. 29 ) 5 . 39 39.87 5. 50 Lower P a n e l German I n t e r b a n k l o a n r a t e ( Nov. 30 ) Nov. 5.48 -JTZh (London) 4.50 (average) 29 ) Canada Euro-$ deposit Nov. Nov. U.S. U.K. I n t e r b a n k Loan ( m i d - p o i n t ) Lower P a n e l ( d a t e : 5.48 Chart 6 ) Upper P a n e l ( P e r i o d : 5.48 C h a r t 5B Chart 3 I. 5.50 U.S. Net i n c e n t i v e 2B (Nov. ) Canadian Finance paper 6.88 , Chart 29 ( f a v o r Canada +) 2A (Friday, ( Nov. 22 Local Authority Spread ) Nov. Canada C h a r t 5A (Friday, Nov. 29 ) 180-day Hire-Purchase (Friday, Treasury b i l l s : 6.08 of d e p o s i t Lower P a n e l s ) 6.88 Euro-$ deposit U.S. 1968 4.50 (Nov. 23) 4.25 J a p a n Composite R a t e (Sept. 30 ) 7.43 U.S. Treasury b i l l s ( Nov. 29 ) 5.48 December 4, 1968 H. 13 No, 379 II. b Chart 7 C h a r t 9A Upper P a n e l U.S. G o v ' t . (Friday, (Wed., Nov. 27 ) 5.50 ( F r i . , Nov.15) 6.53 Nov. 29 ) A g a i n s t U.S. d o l l a r s Upper P a n e l N e t h e r l a n d s Govt. Canadian Gov't. (Wed., Nov. 20 ) 7 . 2 3 Swiss G o v ' t . Composite ( F r i . , Nov. 22) 4 . 3 4 +1.49 German marks +3.01 £ sterling -3.54 Lower P a n e l Middle Panel German F e d . , ( F r i . , Nov. 22, 29) 6. 21 U.K. War Loan ( T h u s . , Nov. 28) 7.84 Euro-'$ b o n d s ( F r i . , Nov. 29 ) 7.53 ) 7. 2 0 31 ) 6.09 Lower P a n e l U.S. Euro-bonds ( Swiss f r a n c s Oct. 31 U . S . C o r p o r a t e Aaa ( O c t . C h a r t 8A ( F r i d a y , Nov. 29 ) -7.11 +0.65 Canadian d o l l a r -0.32 C h a r t 9B (Friday, Nov. 29 ) A g a i n s t pound s t e r l i n g Upper P a n e l German mark + 6 . 51 U.S. d o l l a r +2.86 uower p a n e l Upper P a n e l Swiss f r a n c s +1., 6 1 German marks +0.,28 - 0 . , 65 U.K. £ s t e r l i n g French franc Dutch g u i l d e r French francs - 0 . 36 Dutch g u i l d e r s + 0 . 05 J a p a n e s e yens + 0 . 58 Belgian francs Canadian d o l l a r s - 0 . 18 + 0 . 72 Italian lira 40.1.4 ( Nov. 29 Germany ( Nov. 22 Switzerland ( Nov. 29 ) 269., 3 ) 264. 6 ) 362. 4 Lower P a n e l U.S. C h a r t 8B (Friday, Nov. 29 ) +3.05 C h a r t 10 ( I n d e x ; 1958 = 100) U.K. Lower P a n e l +4.41 Swiss f r a n c French franc ( Nov. 29 ) Canada ( Nov. 21 ) 217. 2 Japan ( Nov. 29 ) 296. 6 F o r d e s c r i p t i o n s and s o u r c e s of d a t a , s e e S p e c i a l S u p p l e m e n t No. 343-S a t e d March 2 7 , 1968. Digitized ford FRASER 237, 5
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