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' DIVISION OF I N T E R N ^ T j f p N A L F I N A N C E BOARD OF GOVERNOR* OF THE H" ^ N o . 338 " F e b r u a r y 2 1 , 1968 / ( C A P I T A L MARKET DEVELOPMENTS ABROAD I. II. I. Ten C h a r t s on F i n a n c i a l M a r k e t s Abroad L a t e s t F i g u r e s P l o t t e d i n H. 13 C h a r t S e r i e s , 1968 Ten C h a r t s on F i n a n c i a l M a r k e t s Abroad Chart Chart 1 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 C h a r t 10 New Y o r k , L o n d o n : Y i e l d s on U . S . D o l l a r F u n d s London: Y i e l d s f o r U.S. D o l l a r I n v e s t o r s y on 3 - m o n t h F u n d s Interest Arbitrage: Frankfurt/London, Zurich/London I n t e r e s t - A r b i t r a g e : New Y o r k / C a n a d a I n t e r e s t A r b i t r a g e : New Y o r k / L o n d o n Short-term I n t e r e s t Rates L o n g - t e r m Bond Y i e l d s Spot Exchange R a t e s Major C u r r e n c i e s a g a i n s t U.S. D o l l a r 3-month Forward Exchange R a t e s I n d u s t r i a l Stock Indices NOTE B e g i n n i n g w i t h t h i s i s s u e , t h e l o w e r p a r t of C h a r t 1 w i l l show a c o m p a r i s o n of t h e c a l l E u r o - d o l l a r d e p o s i t r a t e w i t h t h e F e d e r a l f u n d s r a t e , r e p l a c i n g t h e c o m p a r i s i o n of c o v e r e d f i n a n c e p a p e r r a t e s w h i c h w i l l be d i s c o n t i n u e d . E u r o p e and ^ B r i t i s h Commonwealth S e c t i o n . NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS NEW Y O R K - L O N D O N : YIELDS O N U . S . 3 - M O N T H D O L L A R D E P O S I T RATES DOLLAR FUNDS Wednesdoy figurei EURO-DOLLAR DEPOSIT 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 FEDERAL FUNDS E U R O - D O L L A R OVER FEDERAL F U N D S 3 LONDON: YIELDS EURO-DOLLAR Friday figures FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES Pi 3 0 DAY 9 0 DAY 1 8 0 DAY CALL HIRE P U R C H A S E Friday figures AND LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE P U R C H A S E EURO-DOLLAR DEPOSIT FAVOR HIRE P U R C H A S E EURO-DOLLAR DEPOSIT LOCAL A U T H O R I T Y D E P O S I T v \ r ^ FAVOR E U R O D O L L A R 1965 1966 1967 1968 V} I • INTEREST ARBITRAGE: FRANKFURT/LONDON, FRANKFURT INTERBANK LOAN RATE V S . L O N D O N ZURICH/LONDON E U R O - D O L L A R 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 RATE ! EURODOLLAR FAVOR FRANKFURT DIFFERENTIAL FAVOR ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE EURO OCll |v. IN" TERMS O F S W I S S F R A N C S * EURO-DOLLAR SWISS DEPOSIT RAT: FAVOR ZURICH DIFFERENTIAL FAVOR n PRICE OF GOLD IN EURO-DOLLAR LONDON 35.3 35.0 1965 1966 1967 1968 jT INTERS! ARBITRAGE, Friday figures . 3-MONTH UNITED TREASURY BILL STATES /CANADA Per c e n t P er annum RATES C A N . F I N . CO. P A P E R UNITED STATES CANADA . BILL RATE . 2 T DIFFERENTIAL AND FORWARD CANADIAN DOLLAR PREMIUM S P R E A D IN FAVOR OF C A N A D A F O R W A R D RATE -v/- DISCOUNT , , 3-MONTH . COVERED r RATE DIFFERENTIALS (NET INCENTIVES) TREASURY BILLS / PRIME FINANCE PAPER FAVOR CANADA FAVOR U/S. 1965 1966 1967 1968 la INTEREST ARBITRAGE, 3-MONTH NEW YORK/LONDON T R E A S U R Y BILL R A T E S U.K. LOCAL AUTHORITY D E P O S I T S ! LONDON V RATE DIFFERENTIAL AND 3-MONTH NEW YORK FORWARD STERLING S P R E A D IN FAVOR OF LONDON FORWARD RATE RATE D I F F E R E N T I A L FORWARD EXCHANGE COVER (NET IN FAVOR OF L O N D O N INCENTIVE) /A IN FAVOR OF NEW YORK 1965 1966 1967 1968 I PREMIUM I DISCOUNT 1 n SHORT-TERM INTEREST RATES * E U R O - D O L L A R - LONDON + U.S. SWITZERLAND 5 JAPAN GERMANY CANADA U.S. 1963 1964 1965 * 3 month treasury bill rotes for oil countries except Jopon (Average rate on bonk loans and discounts) Switzerland (3 month deposit rate) and Germany (interbank loon Rate) ~j~ 3-month rate for U S dollar deposits in London 1966 1967 L O N G - T E R M B O N D YIELDS Weekly figures Per cent per annum NETHERLANDS CANADA U.S. SWITZERLAND GERMANY EURO-DOLLAR BONDS 1963 * 1964 1965 Average of yield* for four foreign government dollar bonds quoted in London New ser.es f,r Germany starts 7 - 9 6 5 New series for Switzerland starts 3 3 67 1966 1967 S P O T E X C H A N G E RATES - M A J O R CURRENCIES A G A I N S T U . S . DOLLAR SWISS FRANC I• :/ GERMAN MARK — \ — 1 ! • U.K. STERLING BELGIAN FRANC DUTCH GUILDER I FRENCH FRANC CANADIAN DOLLAR I ITALIAN LIRA J A P A N E S E YEN 1967 1966 1965 * Devaluation of the pound sterling fro, $2 80 to $2 40 "X 1968 3-MONTH F O R W A R D E X C H A N G E RATES A G A I N S T U . S . DOLLARS — N E W YORK Friday figures „ Per cent per PREMIUM* G E R M A N M A R K /PC SWISS FRANC j/AVr ^ POUND STERLING DISCOUNTPREMIUM* DUTCH GUILDER FRENCH FRANC 1 CANADIAN DOLLAR DISCOUNT- A G A I N ST P O U N D S T E R L I N G — L O N D O N Friday figures Per cent per PREMIUM* GERMAN MARK S W I S S FRANC U.S. DOLLAR DISCOUNT1965 1967 1966 1968 INDUSTRIAL STOCK INDICES ,958:100 360 320 SWITZERLAND U.S. GERMANY 160 120 360 320 280 JAPAN 240 CANADA 160 120 1964 1965 Swiss Bonk Corporation industrial stock index Japan: index of 225 industrial and other stocks traded on the Tokyo exchange 1966 W F e b r u a r y 2 1 , 1968. H. 13 No. 338 II* Latest Frgures Plotted in H. 13 Chart Series, 196B (all figures per cent per annum) Chart 1 Upper Panels (Wednesday, Feb. |4 Euro-$ deposit 5.38 U.S. certif. of deposit 5. 38 Lower Panels ( W e d n e s d a y , ) Treasury bills: Feb. 14 Call Euro-dollar deposits 4.57 F e d e r a l Funds 4.58 ) 4.75 < 90-day 180-day 5.44 Upper Panel 5.32 Chart 3 (Period: » Feb. 8 - 1 5 Interbank loan (mid-point) 2,,38 Euro-$ deposit (average) 3,,30 Lower Panel (Date: Zurich 3-month deposit Price of gold (Friday, Feb. 9 Chart 4 (Friday, F e b . Treasury bills: Canada U. S. Spread favor Canada 3. 00 35. 195 ) 16 ) 6.40 4.93 +1.47 Forward Canadian $ -1.28 Net incentive (Canada +) +0.19 Canadian finance paper ) +2.32 Forward pound - 2 . 90 Net incentive (U.K. +) -0.58 6.62 16 ) U.S. U.K. Canada 4.89 7,21 6.4n Zurich 3-month deposit f fiAt-p • Jan. 15 Japan composite rate (Date: Dec. 29 3.38 5.44 ^ 3. 00 ) 7.35 Chart 7 U.S. Gov't. (Wed., ) Jan. 15 7. 21 4.89 Interbank loan rate (German) (Feb. 8-15) Euro-$ deposit (London) 5.47 Hire-purchase paper \. ( F e b . 9) Local-authority deposit ) Spread favor U.K. Treasury bills: Euro-$ deposits: 16 U.K. U. S. Chart 6 (Friday, F e b . Chart 2 (Friday, F e b . 1 6 ) Call 30-day Chart 5 (Friday, F e b . Feb. U.K. War Loan (Thurs., German Fed. (Fri., Feb. Feb. 5.06 14 15 ) 6. 62 9 Swiss Confed. (Fri., Feb. ( F r i . , Feb. Canadian Gov't. (Wed., F e b . 7. 20 1 ) 8 ) 14 ) 4.71 4 . 65 6.84 Netherlands Gov't, perpetual 3% (Friday, Feb. 2 ) 6.12 Euro- $ bonds (Fri., F e b . 7.50 16 ) For descriptions and sources of data, s e e special supplement to H.13, Number 239, March 16, 1966.
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