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DIVISION OF INTERNATIONAL FINANCE H. 13 No. 286 BOARD OF GOVERNOR# February 15, 1.967, ^CAPITAL MARKETjDEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1967 Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York, London, Montreal; Yields for U. So Dollar Investors or. 3-month Funds 2 - London: Yields for U.S. Dollar Investors on 3-month Funds 3 - Interest Arbitrage: Frankfurt/London, Zur v. vh/Lor.dcn 4 - Interest Arbitrage! New York/Canada 5 - Interest Arbitrage; New • ?c R/Lor>don 6 - Short-term Bond Yields 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 OFFICIAL USE ONLY (Decontrolled after six months) NEW YORK, LONDON/ MONTREAL: YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DOLLAR DEPOSIT RATES: NEW Y O R K - L O N D O N EURO DOLLAR DEPOSIT I — U . S . CERTIFICATE OF DEPOSIT L EURO DOLLAR OVER 1 U.S. CERTIFICATE OF DEPOSIT i\\ i i A \ ' 1 FINANCE CO | Fridoy figure# i i 1 i r 1 V/1 i Til 1 l l I I /T i i i PAPER RATES ( c o v e r e d ) : QUOTED IN NEW YORK - - U.K. HIRE PURCHi 1EJ CAIIADIAN FINAl.NCE do* APANY | s<y\ il I W ^ I i % Mar. J mi. 1965 ri i Sept. j W \}%r r \— \ i 1 Dec. ' f 1 I Mar. 1 v - j U.S. I INANCE CO NPANY 1 Jun. 1966 1 1 Sept. 1 1 Dec. 1 1 1 1 Mer.i 11671 lee. L O N D O N : YIELDS FOR U.S. DOLLAR I N V E S T O R S O N 3 - M O N T H FUNDS [EURO-DOLLAR DEPOSIT RATES 180 DAY 90 DAY CALL 30'DAY- HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered) EURO DOLLAR DEPOSIT HIRE PURCHASE DIFFE RENTIAL FAVOR HIRE P U R C H A S E 1 LOCAL AUTHORITY DEPOSIT EURO-DOLLAR DEPOSIT DIFFERENTIAL T FAVOR LOCAL AUTHORITY FAVOR EURO DOLLAR, 1964 1965 1966 '1 4 I INTEREST A R B I T R A G E : 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 v FRANKFURT INTERBANK L O A N RATE V S . L O N D O N E U R O - D O L L A R RATE ( C O V E R E D ) j I N TERMS O F D M INTERBANK LOAN RATE, EURO-DOLLAR DIFFERENTIAL FAVOR FRANKFURT FAVOR EURODOLLAR I N TERMS OF S W I S S FRANCS! - E U R O - D O L L AR A v / 7 - u V / V \ y A - * - SWISS DEPOSIT RATE / / - I I | FAVOR ZURICH DIFFERED TIAL v/^ V I n I 1, 1 1 | ^Va 1 1 1 1 1 1 1 1 1. n „ V FAVOR ELURO-DOLLAR ! 1 1 1 PRICE o r G O L D I N L O N D O N 1965 1966 1967 1 0 1 , U N I T E D ST A T I S / C A N A D A IN 3 - M O N T H T R E A S U R Y B I L L RA ES C A N . F I N . CO. IPAPER CANADA ^ " 1 UNITED STATES BILL RATE D I F F E R E N T I A L A N D FORWARD C A N A D I A N DOLLAR S P R E A D I N F A V O R OF C A N A D A — r v W I FORWARD RATE 3-MONTH DISI C O V E R E D RATE D I F F E R E N T I A L S (NET I N C E N T I V E S ) FAVOR U . S . FAVOR CANADA FAVOR I I I I I INTEREST A R B I T R A G E , N E W Y O R K / L O N D O N [3-M'ONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON /V NEW YORK IRATE D I F F E R E N T I A L A N D 3 - M O N T H IFORWARD STERLING I S P R E A D I N FAVOR OF LONDOw PREMIUM, DISCOUNT"| FORWARD RATE \ A I RATE D I F F E R E N T I A L WITH F O R W A R D E X C H A N G E COVER (NET I N C E N T I V E ) I N F A V f t * OF L O N D O N I N F A V O R OF NEW YORK 1964 1965 1966 1967 "\ L CHOM_6, . . SHORT-TERM INTEREST RATES * U.K. EURO-DOLLAR - LONDON U.S. SWITZERLAND, f JAPAN GERMANY 1 CANADA U.S. 1962 11963 1964 1965 * [ 3-month treasury bill role# for oil countriet except Jap on f^Avaroga role on bank loom ond di»coun>»^| )Swilzerlond|r3monh depoiit rote)j ond Ger many (interbank Loan Rote) 1966 LONG-TERM BOND YIELDS | W . . H y (iB» ,GERMANY A EURO-DOLLAR BONDSl NETHERLANDS CANADA 1 U.S. SWITZERLAND 1962 1963 •/Average of yield* (or four foreign government dollar bor 1964 1965 1966 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR S W I S S FRANC GERMAN MARK U.K. STERLING -FRENCH FRANCBELGIAN FRANCi ISLi DUTCH GUILDER t»low par CANADIAN DOLLAR ITALIAN LIRA JAPANESE YEN M J s 1965 M J 1966 S 0 M 1MT J 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS — NEW YORK Fridoy Hgur«ij GERMAN MARK ( S W I S S FRANC; i V 1 | i POUND STERLING , DISCOUNTT 2 DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNTA G A I N S T POUND STERLING — L O N D O N SWISS FRANC A-/, GERMAN MARK lr U.S. DOLLAR if "DISCOUNTr? M f W D M J 1965 s D M 1 1966 * . s 0 I CH^lo) INDUSTRIAL STOCK INDICES Eolio scale 300 SWITZERLAND 250 GERMANY U.K. U.S. 150 100 300 JAPAN 200 CANADA U.S. 150 100 1963 1964 ^ SWIII Bank Corporation induilriol ilock index ~ Japan: index of 225 induilriol and other itocki traded on the Tokyo exchange 1965 1966 February 15, 196 H. 13 No. 286 II Upper Panel Chart 1 (Wednesday, Feb. 8 Latest Figures Plotted in H.13 Chart Series, 1967 (all figures per cent per annum) ) Euro-$ deposit 5.38 U.S. certif. of deposit 5. 15 Lower Panel Finance co. paper: U.S. Canada Hire-purchase paper, U.K. Treasury bills: ) (Friday, Feb. 10 Chart 5 (Friday, Feb. 10) 5. 25 5.71 5.50 Forward pound -0.81 Net incentive (U.K. + ) +0.52 Treasury bills: Euro-$ deposits: 5.25 5,38 90-day 180-day 5.50 5.62 Hire-purchase paper (Feb. 3) Local-authority deposit (Feb. 3) Chart 3 Upper Panel (Period: Feb. 1-7 5. 56 Interbank loan (mid-point) 5.38 Euro-$ deposit (average) Lower Panel (Date: 5. 68 ) Price of gold (Friday, Feb, 3 4.50 5.83 4.49 U.S. U.K. Canada 5.38 Interbank loan rate (German) (Feb. 1-7) Euro-$ deposit (London) Zurich 3-month (Date: Dec. Japan composit (Date: Nov. deposit 15 rate 30 5.50 ) 4.38 ) 7.39 Chart 7 5. 75 ) Dec. 15 Zurich 3-month deposit +1.33 Spread favor U.K. Chart 6 (Friday, F e b . 1 0 ) Chart 2 (Friday, Feb. 10 ) Call 30-day 5.83 4.50 U.K. U.S. 4.38 35.194 ) 4.44 U.K. War Loan (Thurs., Feb.10 ) 6.46 German Fed. (Fri., Feb. 10 ) 7. 27 Swiss Confed. (Fri., Feb. 3 ) 4. 24 U.S. Gov't. (Wed., Feb. 8 ) Canadian Gov't. (Wed. , Feb. 8 ) 5.52 Netherlands Gov't, perpetual 3% (Friday, Feb. 3 ) 4.49 4.50 -0.01 5-77 Euro-$ bonds (Fri., Feb. 10 6.32 Forward Canadian $ -0.35 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966. Net incentive (Canada + ) -0. 36 Chart 4 (Friday, Feb. 10 ) Treasury bills: Canada U.S. Spread favor Canada Canadian finance paper 5.88 )
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