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X SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. MEEKLY SEMES OF GMMtlS TABLE OF CONTENTS PARTI. EXCHANGE RATES AMD GOLD PRICES Chart 1A and B - Spot Exchange Rales, Ifajor Currencies against U.S. Dollar Chart 2A and B - 3 Month Forward Exchange Rales, Major Currencies against U.S. Dolly Chart 3A and B - 3 Month Forward Exchange Rales, Major Currencies against U.K. Found Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Charts - Call Money Rales Chart 6A and 8 - London: Euro-* Deposit Rales Chart 7A and B -Mew York London: Yields on U.S. Dollar Funds Chart 8A and B - London: Corned Yields on U.S. Dollar Funds Chart 9A and B - Interest Artwtrage: Untied Stales-United K i n g * * Chart 10A and B - Interest Arbitrage: U.S. Germany and U.S -S* zertand Chart 11 - Interest Arbitrage: United Stales-Canada Chart 12 A and B - Selected Short-tern Interest Rales PART III LONG-TERM INTEREST RATES AMD STOCK INDICES Chart 13 Chart 14 - Long-Tew Bond Yields - Industrial Stock W e e s PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation <* the CAPITAL MARKETS DEVELOPMENTS AMftOAD, which was polished under thai title though December 31, 1%8. The changes in the format and oeder «f the charts are explained in the Supplement to the series, which accompanied issue dated January 1,1%9 All series and their sources awe fully described in a frgplfwrnt dated January 1,1172. Chart 1A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages GERMAN MARK SWISS FRANC DUTCH GUILDER 1 J-3.143 / \ 1 At I / //FRENCH FRAMC i, I | 11 JAPANESE YEN V G 1 \y L \ f 1 . .. 1 . -1 .. : 1 1 1 ! 1 1 i j i i i 1 J 1972 * Pound floated June 23, 1972 * * Swiss Ftanc floated January 23. 1973 1973 i i i S i i ^ H Chirt 18 SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US Weekly averages 1972 flat* scale, U S cents 260 240 I I I I I I I I I I I I I I I I 1X1 1 1 1 SPOT EXCHANGE RATES - MAJOR CURRENCES AGAINST U-S. DOUAR May 11, 1971 - Dec 17. 1971 Weekly averages Fer cent JAPAN Par US JUNE JULY AUG SEPT 1971 * Financial franc OCT NOV DEC 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Weekly averages Per cent per annum CANADIAN DOLLAR UJl. DISCOUNT - PREMIUM DISCOUNT - PREMIUM DUTCH GUILDER s 1970 * s 1971 Canadian Dollar Rate no* sui-poMed L> Ban* o 1 Canada D 1972 S 1973 D Ctiart 2 8 3-MOHTH f O I W U W D B l f H M I C E - MAJOB C W W C B A C A X t T M . P O U J U I Weekly averages i 1 H 1 j M : M i i I i i | H j M 1 1 | II | M | I 1 1 1 | M ) M j 1! racmuM • - W S w / \ DISCOUNT - I mcmuM • vxA'VA Vr I i ! i i 1 I i J . 1970 , i S i " i i 1 i : ! i : ! i ; D M J S D 1971 • V X 1 DISCOUNT - i i ! i i 1 i i ; M J S D 1972 | 1 I 1 1 II I 11 11 1 j s o 1973 Chan 3A DISCOUNT M J S D 1970 M J 1971 S D M J S 1972 D M J S 1973 D Chart 38 3-WOETH FOMTAAD EXCHMIGE - MAJOR C U M B I C I B AtiAWST UJL FOWO ffi«lay i«uf«s Pef cewt per m * * m li ! PREMIUM * - ! 12 1 - I i 1 j I # WHCtflMfl - I 4 - z * y \ J 4# VrmmM n u n c - ! ; 4 DISCOUNT 1 1 1 i l 1 1 ! M j S 1 ; ! O 1970 i M : . , J 1 i S 1971 i ! D ! i i M ! 1 : J 1 1 1 i S 1972 : 1 1 1 D M i 1 1 1 1 1 1 1 1 1 J S 1971 O GOLD PRICE IN LONDON, 12 5 Kg BARS Week's average of afternoon fixings 40 M J S D 1970 N J 1S71 S 0 M J 1S72 S 0 m j 1*73 s 0 Xf Chart 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per annum 14 FEDERAL HMDS DIFFERENTIAL EURO-DOLLAR OVER FEDERAL FUNDS FAVOR EURO-DOLLAR FAVOR FEDERAL FUNDS EURO-CURRENCIES Weekly averages J S D 1970 S D 1971 * Changed from CALL to OVERNIGHT Euro dollar deposits, May 10. 1971 S 1972 D S 1973 C Chart 5 6 CAM HOMEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures \ Per cent per annum 12 Svv_ rrif FIAWCE a / ! - - A . llfi | ETMERUw $ U V L u i iJ 1 i 1 1 1 1 , i ! 1 1 I 1 1 1 ! M ! 1! 11I 1i 1i i ! <->—* 1 1 1 1 1 !; 1 i II 11 I ; ^ - JAPAN CANADA i . : i i i ; ; i i ! i i i i i I i i 1 1 1 1 1 1 II 1 11 12 - L v . «./in y Jhflf 1j n/u||6e»nAihi ! i i 1i i M J S D M 1970 J 1*71 S D i i 1i i 1 i i 1i i M J S D i i 1i i 1i i 1i i M 1972 France. Day to day Money, Wether lands. Call Money, weekly avera§e, Japan. Unconditional M o e e y . Canada. Day to-day Loans, weekly average. Germany, Call Money; U-K . 2-day Local Authority Deposits i S 1971 O Chart 6A LONDON: EURO DOLLAR DEPOSIT RATES Per cent per annum Friday figures 12 i - 1 10 OVIERNIGHT - | WlCALI i J A 1 f 1 - / A| - r 1 11 1111 11 1 ! 1 ! 1 1 1 1 II 11 1 11111111111 i i 1i i 1 i i f i i 12 r- - 10 - \ y A - / y - 1-MONTH ft - - 11111111111 11111111111 M J S D M 1970 J S 1971 * May 12/71—changed to Overnight Euro-Dollar Deposits July 1-changed to 7-Day Euro-Dollar D i i 1i i 1 i i 1 i i M J S 1972 D I I 1 1 I 1 II M J S 1973 1I 1 D ~b Chart 6 6 LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures cmt p * anmm - \ V y VI V - A 3-N0RTH i i 1 i i 1i i 1 i i 1 1 1 1 1 1 1 J 1 11 / - r i i 1 i I 1Ji 1i i i t I i i I i i i 1 i., - \ V v y 11111111111 1070 * v A v 64WWTH J VX-aA'n/^ J i J 1 J i - L i J 1 i i - _l_lJ L 1 1 1 1 1 1 1 .Li i-J-l 1 1 1 1 I I 1071 1072 1070 NEW YORK LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per annum 12 10 S EURO DOLLAR DEPOSIT 6 4 US. CERTIFICATE OF DEPOSIT 2 FAVOR EURO DOLLAR DIFFERENTIAL 4 0 EURO DOLLAR OVER U6. CERTIFICATE OF DEPOSIT 2 J s D 1970 M J 1971 S D M J 1972 S D M J 1973 S D Chart 76 NEW YORK-LONDON: COST Of VS. O O U t t FUNDS 34IOWTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Wednesday figures Per ceat per jmnum ADJUSTED' u s . c e r t i f i c a t e o f deposit 1 I ADJUSTED etmkmxmumi o v e r " — U s. c e r t i f i c a t e o f deposit I M J S 1970 2 tt S 1971 * A<\ur-<t d W Reserve Requirement ** •or 10% Marginal Reserve R e c r e m e n t * * * Ad|uti» J for 20% Marginal Reserve Rtcuiememt ADJUSTED D M J 1972 S D J 1973 S Chart 8A LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE/STERLING CD's vs EURO DOLLAR RATES Friday figures I Per cent per annum 12 - EUtO-OOLLAft 0 | I ~ \ 11 w > p i nwrinir COVERED STBHJMG CD s COVERED 1 !1 1 i I i •1 • | 1 i i i i i i i i i i I ; ; ! i ! ; ; 1 i iI ' l l ! ! : I MUM* STERLWG CD s DIFFERENTIAL A y f 4 — i i 1 f M U i M i J . S ; i II D 1970 M ! 1 1 I i i J 1971 S A f VOR EUROD -OLLAR 1 1 1 1 i 1 1 11 11 11 i 1 1 1 1 1 1 I 1 II D M J 1972 * H i r e Purchase suspended August 11, 1972 and Sterling Certificates of Deposit begin August 11. 197? S 1973 N* CtertW LONDON: COVERED WELDS ONUS. OOUA* FUHOS LOCAL AUTHORITY AMD EURO-DOLLAR RATES Ffiiay figures - LlMOEPOBf / - " LOCAL AllrmoRfiv I c«iiH) i i ! i i 1I i 1i t 1 1 i M 1 I J..U 1 1 i 1i i 1 i I 1I i 1 11 111 II 1 11 FAWOE LOCAL AUTHORITY - OIFFEREWTIAL Ay 1 i W 1 i ! Jl A i Vv*i 111111 i i 1i i 1i i J S D H 1970 J S 1S71 i * i i 1 111' 1 111M D M J S 1972 D FAWO* EIWMMUM 1 1111111111 M J S 1973 O Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Mr I Pe* 3-MONTH TREASURY BILL RATES york m J S D 1969 * Plotted for comparison purposes m J 1970 s D m J 1971 s D » J 1972 s 0 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures P«r c*fttp*r«iMHtfn RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING 1 r^\AtP9EADm z A HtCWUMi VJ f a v o r o f london V Z1 \ X . f o r w a r d r a t i i\y DISCOUNT n i l 1 1ii 111 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 . DIFFERENTIAL , / Tin z v >V \Aj*Jy v f FAVOR LONDON M V. r 11111111111 M AA Aa V / ^ / v A 1 1 1 1 1 1 1 1 1 1 1 J S l I 0 U M 1 l I 1 l l J S 1970 1 l I D 11111111111 M J S D 1971 i M i , (?AVO« NEW YORK 1 i i J l i S 1972 i l O i i Chart! OA 3 MONTH FUNDS INTEREST ARBITRAGE; EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE Wednesday rates Par cent per annum IN TERMS OF DM loam r a t e eurodollar COVERED FAVOR FRANKFURT DIFFERENTIAL FAVOR EURO-DOLLAR _l. i s M D 1969 — No quotation M _l_ J 1970 s D M J 1971 S D « J 1972 S D 1? Chart 106 340ONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE Wednesday rates Per cent per, M TERMS Of SWISS FRANCS DIFFERENTIAL M J s D tM* Me awoUtien M J *97* s 0 « J 1171 s 0 J mt # Chart 11 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures I I | I I | I I | I I I I | I I | I I | I I BILL RATES I ! | I I | I I | 11 f m . co. paper united states treasury bills BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR forward rate g r o s s spread m o f canada COVERED RATE DIFFERENTIALS . i i I i i I i i I i i M J S D treasury bills i_i_i i i I i i I i i M IMS J S If70 D I i i I i i I i i I i i I J S 1S71 O I i i I i i I i 1 I i i I J S 1972 0 z SELECTED SHORT-TERM INTEREST RATES' Per cent per annum r ^ i germany ux japan i canada 1968 1970 * 3 month treasury bill rates for al' countries except JapaniAverage rate on bank loans and discounts) and Germanyiinterbank Loan Rate) 1972 Chart 128 SELECTED SHORT-TERM INTEREST RATES* Per cewtper US. vm * 2 niwtli treasury t*H rate for U S , S w U e r l a o d - 3 - w e t t i deposit rale. * * S-wontti rate tor U S dollar deposits w London Chart 13 LONG-TERM BOND VELDS Weekly figures Per cent per annum - WDS js/Z i lJ . UJS. S W I Z E H L•NO " >Vv yi XL^. i 11 i 11 i i 1 17 1 1 1 I I 1 1 1 1 11 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 11 11 111 1 1 1 1 1 1J UJL » Aaa BONOS >. OH EUNO-BONOS 1970 1971 1972 * New series for Switzerland starts 8 2 « , U S Corp. D e t e r Euro-Bonds ami U S . Carp M i E w i i B w f c starts 12 70. * * New Average yield of alt German F A Bonds begins 1 7 - 6 9 * * * New series F starts 12-71. CHART 14 W U S T W I L STOCK W O E X t t UWIEO STATES UNITED KIMGOOIfl 240 T JAPAN #00 GERMANY 240 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 1072 February 14, 1973 H 13 He. 597 I Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since fHeviots Ra&e In Effect Since E.E.C.: Belgium France 5.0 Dec. 21, 1972 4.5 Kov. 22. 1972 7.50 Hov. 30, 1972 6.50 Mov. 2, 1972 Germany 5.00 Jan. 12, 1973 4.5 Sor. 30, 1972 Italy 4.0 A p r i l 10, 1972 4.5 Oct. 14, 1972 Netherlands 4.0 Sowmber 3 . ' 7 2 3.0 Sept. 8 . 1972 **United Kingdu m 8.75 Jan. 19, 1973 9.# Dec. 22. 1972 4.50 Jan. 3.75 is Canada Japa. United States 1. 1973 4.75 Oct. 25, 1971 5.25 Feb. 24. 1971 4.25 June 24. 197/ 4.75 Am-il 90 r 1971 5.00 Jan. 15. 1973 4.50 DpFr 1?, w n cective October 13, 1972, the Bank of E. ;lacd replaced I t s t r a d i t i o n a l LarJc Bate with a fluctuating "minimum ler _ng rate" based on average Treasury bi 1 tender r a t e . January 15, 1 9 7 3 . . . 8 . 7 IV-2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc UJC. pound French franc Japaneseyen Lower IB Upper Lower Belgian frame Kalian fae Canadian dollar Gemanwa* Dutch guilder Upper German # a * Swiss franc U K pound Dutch guilder Canadian dollar French franc Japanese yen 2A 28 Lower 3A Fefc, g * Upper Actual Iste Middle Lower Upper Lower Overnight Euio-S deposits Federal Funds Diffeiential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Hooey U.K., 2-day Local Atdhor. Heps. Canada. Day-to-day Loans fiance, Day4o4>ay Money Germany, Call Honey Netherlands Call Money Rale 47,274 23#,14» 41,945 43,143 *2,226 40~03S 99.90 42,227 42,224 46,71 42,23 -3-59 44,31 4W3 -#,77 ac « 4*4.44 42*44 49,7i 42,74 " m M GoM price, U.S. dollar per ounce 4 56 v» Cwainaric U.S. dollar Swiss franc French franc 36 5A Oafe 4#-43 Feb. 7 - 5,94 4.$1 -0,25 ' 1 M , 1 Jaw, 27 7 » % i I M , 12 3,7# 5,10 5,12 9,4# 3,7# 1M KB 4,3# IV - 3 Chart Panel 6A Series Date Euro-S Overnight Rate Feb, 9 Euro-S 1-month Rate 6B »« „ Euro-S 3-month Rate Euro) 6-month Rate 7A 78 Upper Euro-5 3-month Deposits Feb. 7 •« Lower Differential .. Upper Euro-$ 3-month Deposits It „ Euro-S 3-month Deposits (Adj.) U.S. Certificate of Deposits (Adj.) Differential: on Adj. Euro-S Deposits Upper Euro-S 3-month Deposits s t e r l i n g CD's (covered) 8B 7T7S 6.88 6.28 40.60 6.88 8.60 •i " Jan. 26 " „ +2.07 -0.35 6.56 6.24 Lower Differential Upper Euro-S 3-month Deposits " 6.56 Local Authority Deposits (covered) •• 5.81 Differential Lower U.S. Treasury Bill rate 9A U.K. Treasury Bill rate f ! 96 7.75 6.53 on Unadj. Euro-S Deposits 8A 9.00 7.375 U.S. Certificate of Deposits Lower Rate Upper Lower -0.32 -0.75 Feb. 9 „ 5.30 7.98 Local Authority Depcsit (uncovered) ii 10.06 Spread (+= favor London) .. +2.68 3-month Forward Pound «« -3.00 .. -0.32 Net Incentive (+- favor London) IV-4 Chart Panel 10A Upper 108 11 Series Date Eimo-S Deposits (coveted) Bale Feb, 7 0,66 Geiwan Inteitanfc Loan rale " 7,88 Lower Differential « *7,22 Upper Eiwo-$ Deposits (covered) •« 4.76 Swiss Deposit rate H ' Lower Differential •« Upper Canadian Finance Paper Feb. 9 U.S. Treasury Bill rate Second 12A -0,76 5.25 5,30 Canadian Treasury Bill rate M U.S. Prime Finance paper (not plotted) II Bill rate differential " -1,47 Forward Canadian dollar " 4-1,48 « 40,01 3.83 5.88 Thiid llet incentive on bills Bob* Bet incentive on Finance Paper Upper U.K. Treasury Bill rate « 7.98 U.S. Treaany Bill rate •* 5.30 Geiwan Interbank Loan rate Lower Japanese Average rate Canadian Treasury Bill rate Feb. 7 7,88 - 6.7S1 . Feb, 9 U.S. Treasury Bill rate 128 Euro-S Deposits 3,83 5,30 " Swiss 3 won* Deposit rate 7,375 4,0* U.S. Treasury Bill rate || IV - 5 Chart Panel Series 13 Upper Netherlands Feb- 2 Canada M United Stales I W . *7 Switzerland T— U.S. Corp. Dollar Ewo*i U S. Com. DM Onu hand6 U.S. Corp. A # hands Switzerland Upper Gwany United Stales United Kingdoe Middle Canada Lower 1« " Japan United Stales 5.22 8 - « United Ki^dow Lower 7.06 7.16 * Gemany Middle 14 Rate Dale WIlHt F SHOES F Feb, 2 9.X - 7.68 . tt 6.96 Jeeewv 7.15 Feb. 2 466.0 J « u 31 314.2 Feb. 9 Feb. 2 Feb. 9 259.32 261.13 256.70 F«b. 1 W.r* Mi. A «<»* Feb. 9 259.32 * Mew - Average yield of ALL Geman Public Authoritiestoadswade as taokiag bey days. ** Begim#* week ended Sq»lewbtr 5,1970 the Japanese index plotted is teat of all industrial and other stocks en the First Section of the Tokyo Stock Eechaage.
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