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DIVISION O F I N T E R N A T I O N A L F I N A N C E BOARD O F GOVERNORS H* 13 No. 233 February 2, 1966 CAPITALJARKE3LDEVEL0PMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1966 Ten Charts on Financial Markets Abroad Chart 1 - New York, London, Montreat: Yields for U.S. Dollar Investors on 3-month Funds - London: Yields for U.S. Dollar Investors on 3-month Funds Chart 3 - London, Frankfurt, Zurich: Yields on 3-month Bank Funds; Price of Gold in London Chart 4 - Interest Arbitrage, New York/Canada Chart 5 - Interest Arbitrage, New York/London Chart 6 - Short-term Interest Rates Chart 7 - Long-term Bond Yields Chart 8 - Industrial Stock Indices Chart 9 - Spot Exchange Rates - Major Currencies Against U.S. Dollar Chart 10 - 3-month Forward Exchange Rates Chart 2 Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW YORK, L O N D O N , MONTREAL: Y I E L D S FOR DOLLAR U . S . DOLLAR DEPOSIT RATES: INVESTORS O N NEW 3 - M O N T H FUNDS YORK-LONDON 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 U . S . C E R T I F I C A T E OF D E P O S I T FINANCE CO. Friday ligurei I I PAPER RATES ( c o v e r e d ) : QUOTED IN NEW 0 YORK Per cenl per annum 6 CANADIAN FINANCE COMPANY 5 U.K. HIRE PURCHASE 4 U.S. FINANCE COMPANY Mar. Jun. Sept. 1964 Dee. Mar. Jun. 1965 Sept. Dee. Mar. lee. 1968 Sept. Dec. L O N D O N : YIELDS FOR U . S . DOLLAR E U R O - D O L L A R D E P O S I T RATES 90 INVESTORS ON 3-MONTH FUNDS DAY 180 DAY 30 HIRE PURCHASE AND LOCAL D A Y " AUTHORITY "cALL D E P O S I T RATES ( c o v e r e d ) EURO-DOLLAR DEPOSIT HIRE PURCHASE T 1 FAVOR HIRE P U R C H A S E FAVOR EURO-DOLLAR LOCAL AUTHORITY EURO-DOLLAR DIFFERENTIAL DEPOSIT DEPOSIT ' FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR 1964 1965 1966 X LONDON, FRANKFURT, ZURICH: YIELDS O N FRANKFURT INTERBANK LOAN 3-MONTH RATE V S . L O N D O N BANK FUNDS EURO-DOLLAR RATE ( C O V E R E D ) I N TERMS O F D M I N T E R B A N K LOAN R A T E EURO-DOLLAR T T DIFFERENTIAL FAVOR FRANKFURT FAVOR EURO-DOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE ( C O V E R E D ) IN TERMS OF SWISS FRANCS E U R O DOLLAR S W I S S DEPOSIT RATE T DIFFERENTIAL FAVOR ZURICH FAVOR E U R O D O L L A R n PRICE OF G O L D I N L O N D O N u s doiu 35.2 35.0 1964 1965 1966 INTEREST ARBITRAGE, UNITED S T A T E S / C A N A D A 3-MONTH T R E A S U R Y BILL RATES CAN. FIN. CO. (PAPER CANADA • UNITED STATES T^ITRATEDIFFERENTIAL SPREAD AND FORWARD C A N A D I A N DOLLAR IN F A V O R OF C A N A D A PREMIUM W DISCOUNT FORWARD RATE 3-MONITHCOVERED RATE D I F F E R E N T I A L S (NET I N C E N PRIME FINANCE PAPER IVES) FAVOR CANADA / W / * \ A F A V O R U . S . __ FAVOR CANADA TREASURY BILLS FAVOR U.S. 1963 1964 1965 1966 INTEREST A R B I T R A G E , Fridoy figures 3-MONTH U.K. TREASURY NEW BILL LOCAL AUTHORITY YORK/LONDON RATES LONDON DEPOSITS NEW RAT E D I F F E R E N T I A L FOR W A R D AND STERLING 1 1 1 S P R E 4 ID IN F A V O R 1 3-MONTH 1 1 YORK 1 I f O F LI3 N D 0 N I 1 I I I F'REMIUI1 i - " l J X — 1IISCOUIIT y v i 1 O R W A R D R f li T E l | I 1 tv, 1 1 1 1 1 1 1 1 1 I RATE D I F F E R E N T I A L 1 1 1 1 u l WITH FORWARD i AAV 1 1 11 1 1 E X C H A N G E COVER (NET i i 1 1 1 1 INCENTIVE) IN F A V O R O F L O N D O N IN F A V O R O F N E W Y O R K 1963 1964 1965 1966 1 1 SHORT-TERM INTEREST RATES * U.K. E U R O D O L L A R - LONDON U.S. GERMANY JAPAN U.S. CANADA SWITZERLAND 1962 1963 3-monih treasury bill rates lor oil countries except Japan. and Switzerland ( 3 month deposit rale ) 3-month role lor U S dollar deposits in London 1964 1965 ( Average role on bonk loons and discounts ) 1966 LONG-TERM BOND YIELDS Weekly figurei f, GERMANY U.S. CANADA NETHERLANDS U.S. SWITZERLAND 1962 1963 1964 1965 1966 INDUSTRIAL STOCK INDICES I I I I I I I I I I I I I I I I I I I I I I 100 1963 1964 1965 e Tokyo exchong# 1966 SPOT EXCHANGE RATES - M A J O R CURRENCIES A G A I N S T U . S . DOLLAR S W I S S FRANC G E R M A N MARK Z/V U.K. STERLING BELGIAN FRANC FRENCH FRANC V W DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA J A P A N E S E YEN M 1 1964 S 0 M S 1965 D M S 1966 D 3-MONTH Friday figures AGAINST F O R W A R D E X C H A N G E RATES U. S. D O L L A R S p. GERMAN MARK S W I S S FRANC POUND STERLING ~ DISCOUNTAGAINST POUND STERLING - L O N D O N PREMIUM* |\\ S W I S S FRANC - G E R M A N MARK U. S . DOLLAR AGAINST POUND STERLING - LONDON PREMIUM DUTCH GUILDER BELGIAN FRANC "> A ;'s — P v v FRENCH FRANC I 1964 S 0 M 1 1965 S 0 M J 1966 S 0 H" 13 ii No.233 Latest Figures P l o t t e d i n H. 13 Chart S e r i e s , 1966 ( a l l f i g u r e s per c e n t per annum) Chart 4 Chart 1 Upper panel (Wednesday, January 26 ) Euro-$ d e p o s i t 5.25 U.S. c e r t i f . of d e p o s i t 4.99 Lower panel (Friday, ) Forward Canadian $ 4.88 5. 21 5.57 Net i n c e n t i v e (Canada +) January 28 Finance co. paper: U.S. Canada Hire-purchase paper, U.K. (Friday, ) 4.51 4.53 Canada U.S. -0.02 Spread favor Canada 0. 54 -v;. 56 5. 75 Canadian f i n a n c e paper (Friday, January 28 Treasury b i l l s : Euto-$ d e p o s i t s : 90-day 180-day 5.31 5.44 Hire-purchase paper 5. 31 (December 31) Local-authority deposit Chart 3 Interbank loan (mid p o i n t ) 6.25 Euro-$ d e p o s i t (average) 5.40 Lower panel (Date: J a n u a r y 15 ) Zurich 3-mo. d e p o s i t 3.81 Price of gold (Friday, J a n u a r y 14 35.144 ) Forward pound - 0 . 87 Net i n c e n t i v e (U.K. +) - 0 . 04 Chart 6 28 Treasury b i l l s : U.S. 4.53 U.K. 5.36 ) Germany 4- 00 ( J a n . Canada 4 . 5 1 Euro-$ d e p o s i t (London) Zurich 3-mo. d e p o s i t (Date: J a n u a r y 15 Japan composite r a t e (Date: 1964. December 31 January 7 4 . 00 _ 3.81 5.31 3.81 ) _) Nnvpmhpr 30 7.636 Chart 7 U.S. Gov't. (Wed., J a n . For d e s c r i p t i o n and sources of data s e e s p e c i a l annex to H. 13, Number 164, 5.36 4.53 +0, 83 (Friday, J a n u a r y December 24-31 ) ) U.K. & U.S. Spread favor U.K. 5.22 ( J a n u a r y 14) S e t p e m b e r 23, ) Chart 5 ( F r i d a y , J a n u a r y 28 Upper panel (Period: J a n u a r y 28 Treasury b i l l s : Chart 2 Call 4.88 7-dav 5 . 0 0 30-day 5 . 1 2 February < 4.51 1 U.K. War Loan (Thurs. , J a n . 27'> German Fed. ( F r i . , J a n . 21 Swiss Confed. ( F r i . , Canadian Gov't. (Wed., J ) 7. 33 2_" 3. 90 Jan. 26) Netherlands Gov't, perpetual ( F r i . , J a n u a r y 21 ) 6. : 6 5. 45 5. 74 1
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