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M m q r 1. Wf% W. W 1 / A# i 4- /V-/3 SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WBBCtr «BMESOFCHARTS TABLE OF CONTENTS PARTI. EXCHANGE RATES AM) GOLD PRICES Chart 1A and B - Sfxxt Exchange Rales, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Fonarard Exchange Rates, Ifajor Currencies against U.S. Dollar Chart 3A and 8 - 3-Honlh Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price HI London PART 11. SHORT-TERM INTEREST RATES Charts - Call Money Rales Chart 6A and 8 - London: Euro-S Deposit Rates Chart 7A and 8 - Mew York - London: Yields on U.S. Dollar Funds Chart 8A and 8 - London: Covered Yields on U.S. Dollar Funds Chart 9A and 8 - Interest Arbitrage: United States-United Kingdom Chart 10A and 8 - Interest Arbitrage: U.S.-Geieany and U.S.-Switzerland Chart 11 - Interest Arbitrage: United Stiles-Canada Chart 12A and 8 - Selected Short-term Merest Rates PART III LONG-TERM INTEREST RATES AMD STOCK IMDICES Chart 13 Chart 14 - Long-Tem Bwd Yields - Industrial Slock Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AMD LATEST Flames PLOTTED ON THE CHARTS MOTE: This series is a continuation 4 the CAPITAL MARKETS DEVELOPMENTS AMflOAD, •Ak* uas ^Wished under that title Nhou#i Decoder 31,ISM. The changes in She low* and omder «f * e charts m* nfjdainod in the S*##ement lo #e series, Wwd# irrn^uif d issue dated ianuaiy 1, WW All series and their sources ame tutly described in a S*g#l#uont dated January 1, 1*72. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US DOLLAR Weekly averages Per cent - GERMAN MARK I.K. POUND SWISS FRANC DUTCH GUILDER FRENCH FRANC JAPANESE YEN Below S 1972 * Pound f l o a t e d June 23. 1972 ** Swiss Franc f l o a t e d January 23, 1973 D J 1973 S D V\ Chart 18 SPOT EXCHANGE RATE MAJOR CURRENCIES AGAINST US. Weekly averages ITALIAN LIRA Below 1972 1973 Ratio scale. U S cents Ratio scale, U S cents 100 CANADIAN DOLLAR -I UJC. POUND 260 240 96 - Ctort 1C EXCHANGE RATES - AGAWST US. DOLLAR May 11. 1971 - Dec 17, 1971 JAPAN MAY JUNE JULY AUG SEPT. 1971 * Financial franc OCT. NOV DEC Ctwf I D SPOT ttCHMGf RATES - MAJOft CUMFMCIES AfiAWST US. DOHA* 11. 1971- Dec 17. 1971 UJL ITALY UJL ITALY mm swrrz. MAY JULY SEPT. AUG If71 • f o r clarity the vertical scale is double that wed HI 1C OCT DEC- 3-MONTH FORWARD EXCHANGE - MAJOR CURREMCES AGAINST VS. DOLLAR Weekly averages CANADIAN DOLLAR U * . POUND DISCOUNT - PREMIUM DISCOUNT - PREMIUM DUTCH GUILDER DISCOUNT - 1970 * 1971 Canadian Dollar Rate not supported by Bank of Canada 1972 1973 4 Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CUMENCE8 AGAINST U-S. Weekly averages 1 II | ! 1 ! M ! ' 1 ' | ! 1 | ! ' ! ! L M | M J II | 1 1 I 1 ] T 1 | T T J 1 1 ***** * FflEflCM FMHC - - V V X / DISCOUNT PKMUtf • Vx/Vl " v \ XT DISCOUNT - l l 1 l i I i J l 1 i 1 i S 1170 i « 1 i i 1 i J lt71 I s 1 i i 1 I 1 i I i 1 1 1 LI 11111111111 J wn wn s Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC. POUND 1 Friday figures Per cent per an PREMIUM * - - i I - . I • - \ - GERMAN MASK | 1 | US. DOLUS - - otscot »T II 1 1 1 1 1 1 1 II M J S D 1970 II M 1 111 1 11 1 11 J 1*71 S D i M ! i ; J i ; S 1*72 . 1 I D . i . , 1 • I 1 ; I 1 I I M J S 1*73 D Chart 3B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U X POUND Friday figures Per cent per annum SWISS FRANC " FRENCH FRANC DISCOUNT - „ j J s S D 1970 w J 1971 S D W W J 1S72 S D U M • J lfTS s 0 w Chart 4 GOLD MICE HI LONDON. 125 Kg BASS Week's ewarjge of aflemoee Ami#gs U S doll** equivalent per 1 me ounce 00 so 40 M J S D 1970 M J 1071 s D M J 1072 S 0 M J 1073 s o CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per annum 14 CALL EURO-DOLLAR DEPOSITS OVERNIGHT EURO-DOLLAR DEPOSITS FEDERAL FUNDS DIFFERENTIAL FAVOR EURO-DOLLAR EURO-DOLLAR OVER FEDERAL FUNDS U M U J L ^ FAVOR FEDERAL FUNDS EURO-CURRENCIES Weekly averages Per cent per annum 8 EURO-SWISS FRANC M ' J S D 1970 M J S D M 1971 * Changed from CALL to OVERNIGHT Lure dollar deposits. Way 10. 1971 J 1972 S D M J S 1973 D Chart 56 CAU- HONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Pet cent per UJ(. GERMANY M S D 1970 M S 1971 D M J S D 1972 France. Day-to-day Money. Netherlands, Call Money, weekly average; Japan, Unconditional Money; Canada, Day-to-day Loans, weekly average; Germany, Call Money; U K , 2 day Local Authority Deposits M J 1973 S o • Chart-6A LONDON: EURO DOLLAR DEPOSIT RATES Friday figures Per cent per annum 12 10 OVERNIGHT 8 CALL 6 4 2 r V L . v| - 1 Pi hi v V - i i 1 i i 1 i i 1 i i ,, i i 1 i i 1 i i 1 i i , M S J D M 1970 J S 1971 * May 12/71—changed to Overnight Euro-Dollar Deposits * * July 1-changed to 7-Day Euro-Dollar D — 1-MONTH ^ iICF-P i i 1i i 1i i 1i i M J S 1972 D J 6 4 i i 1i i 1i i 1i I M J S 1973 D 2 LONDON: EURO-DOLLAR DEPOSIT RATES Friday figures - \ v\. - h \ V - - M#oem# 1 1 1 1 1 1.1 -1-1 1 1 1 i i 1 i i i i i i i i / 1 1 1 1 1 i i i i i -L- 1 1 1 1 i 1 1 i l-i.-l- - \ f v MtOMTM Jl / i A v / V i V \ i - i i 1i i 1i i 1I I i i 1i i 1i i 1i i 1 1 1 1 i.l.i 1 1 1 1 J I l-LJ. 1 1 1 1 I I NEW YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per an EURO DOLLAR DEPOSIT U S. CERTIFICATE OF DEPOSIT DIFFERENTIAL FAVOR EURO DOLLAR . J ~ ! \fAj l\ 1 i \ AJ EURO-DOLLLAR OVER US. CERTIFK :ATE OF DEPOSIT i i 1 M i i 1 J i i 1 S i i i i 1 D „M 1970 i i 1 i i J 1971 1 S i i I D I 1 I I 1 I I 1 I I M J 1972 S i D I * l i i I i i J 1973 S I i D i I Chart 78 NEW YORK-LOUDON: COST OF U S . DOLLAR FUNDS 3 - M O N T H DOLLAR DEPOSIT R A T E S - P R W A R Y MARKET Wednesday figures f Vw EURO-DOLLAR DEPi a ADA r" -XM't f t w A Per cent pet annum j - nL mt U.S. CERTI TCATE Of DEPOSIT J 1 V / V EURO-DOLLAR DE ADJUSTED* i i I i i 1i i 1i i l I 1i l 1l l 1l l 1 1111111j 11 1 111111i I 11 1 - k f l j ' i yj4jw / \ j MJ P A / V ^XA\/VV V\A . - „ L U J. CERTFICA1rE OF DEPOSIT ADJUSTED* i i 1i i 1i i 1i i 1 M J s o 1970 I I 1I I 1i I 1I l M J 1971 * Adjusted for Reserve l i | » i r w > **Ad##sted for 10% Wwpaal Reserve Reqvireweet • • • A d j u s t e d for 20% Mwgwal Reserve Requirement s M J 1972 S 1 1111111I 11 J 1973 S D Chart 8A LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS H I R E P U R C H A S E / S T E R L I N G C D ' s v s EURO D O L L A R RATES Friday figures Per cent per annum 12 EURO DOLLAR DEPOSIT HIRE PURCHASE COVERED STERLING CD s COVERED „ 1 1 DIFFERENTIAL FAVOR STERLING CD s ! p v \ y i y V I FAVOR EURO DOLLAR 1 i M 1970 1 i i i : ! 1 1 i I I 1 I I 1 1 1 1 I I J J 1971 1972 * Hire Purchase suspended August 11, 1972 and Sterling Certificates of Deposit begin August 11, 1972 1 1 1 1 1 1 I I 1973 1 I I s LONDON: COVERED YIELDS ON US. DOLLAR FUNDS LOCAL AUTHORITY AND EURO-DOLLAR RATES Friday figures Per CMt per wwium : 12 | 1 1 V - I A V\ EURO-DOLLAR DEPOSIT XAA /li 1 , 1/VV : LUvAL MlFLNOIOTT DEPOSIT COVERED J 11 1 1 1 1 ' I 1 - : I • ; 1 ' I ! i 1 1 ! ! 1 ! I 1i i 1i i 1i i FAVOR LOCAL AUTHORITY - DIFFERENTIAL IA A V / y A 1 Vv V FAVOR EURO-DOLLAR ! 1 ; 1 . : ! i 11! , 1l 11 1 1111111111 J 1970 1971 1972 S D I I 1 1 1 1 1 I 1 11 M J 1973 S 0 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures I j Per cent per 3 - M O N T H TREASURY B l LL RATES | ! UJC. LOCAL AUTHORITY DEPOSITS UNCOVERED * Plotted for comparison purposes J IN Owt9S INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per eiuivm RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I OF FAVOR LOW DO* FAVOR NEW YORK « J s D LMF « J LF70 S 0 M J IF71 S D M J 1972 S D 4 /' Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK F R A N K F U R T INTERBANK LOAN RATE VS. L O N D O N Wednesday rates EURO-DOLLAR RATE Per cent per annum IN T E R M S OF D M , GERMAN INTERBANK LOAN RATE - EURO-DOLLAR COVERED FAVOR FRANKFURT DIFFERENTIAL FAVOR EURO DOLLAR S D D 1969 No quotation 1970 S 1971 D M J 1972 S D Chart 106 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF SWISS FRANCS EURO-DOLLAR COVERED SWISS DEPOSIT RATE 2 DIFFERENTIAL FAVOR EURO-OOliAR M J S D M 1969 ——— Wo quotation J 1970 S D M J 1971 S D M J 1972 S D vn * & 1 11 AS! hs«Q 3-MONTH INTEREST ARBITRAGE: U N n & S t A l B ^ i i M M M i * 7 ?'T"! ' I I | I I ] I I j M rfl OH2 Q3T03J32 fKtmjm, BILL RATES COPAPE. UNITED STATES TREASURY BILLS B I L L RATE D l f F E R E N T I A L i A N P F O R W A R D C A N A D I A N DOLLAR ^ ^ -r- —4 - r *. W — —4— FORWARD RATE GROSS SPREAD IN FAVOR OF CANADA HA9A P C O V E R E D RATE D I F F E R E N T I A L S TREASURY1 BILLS /wVvo j v J \ r \ / FINANCE PAPER FAVOR U S I 1I I I 1I I I I I : # Owt 12* SELECTED SHORT-TERM INTEREST RATES* Per cent per annum UJL 9 JAPi 1968 * 3 mma* treasury M l rates tar e* c a w aad towiiU'liiti* Law #aW) 1970 Chart 128 SELECTED SHORT-TERM INTEREST RATES* Per cent per anevm EUBO-DOU-AH - 1S72 * 1 Birth freeswry bill rate for U S . Seet*erteed-3-mo«ilii deceit rate * • I W H I rale lor U S dotiw <tapowte m London. Per cent per annurr 10 NETHERLANDS CANADA , fn i . V\ SWITZERLAND 4 11 A--4 / V ^ ' GfRMANt -V J \ , J 1 p / *. H ^ U.S. C O R P D O L L A R EURO-BOWDS US. C O W Aaa I : i ! . i >. DM EUH04KM0S 1968 1969 1970 1971 1972 * Ne* series lot Switzerland starts 8 2-68. U S Corp Dollar £uto-Bonds and U S Cwp OH Citro-teMts starts 12 70 * * Ne* Averse yieici ol all German P.A Bonds begins 1 7-69 * * * Me* ifc'itri f starts 12 "I ! 5 10 y4 CHART 14 MDUSTRIAL STOCK WOEXES UNITED STATES V ^ X 200 i i 1iVv i i 1i i II 1 1 11 I 111 I ^ i i 1i i 1i i 1i i SWITZERLAND v- f 1 1I 111111111 ^A/^V 360 XT UNITED KINGDOM / 240 r i i i i i i ! i i b r i i I i , I 1 , 1 ! 1i i ! i ; 1; : ; I L 1 1 1 1 1 1 1 ! 1 J—160 1 y -v JAPANy^ 1 I X- 360 /™^X/ GERMANY 1 /s 1 / CANADA 11 ! 1 ! 11111 ! 1 1060 1 1 11 1070 V / 1 i .1 1 1 1 1 1 ! 1 1 1 1 1 1 1 I I 1 J ,1 1 .1 .1 . 1071 1072 Japan mde* of 225 industrial ant, other stocks traded on Tokyo exchange. * Japan ir.ae* of all industrial and other stocks traded on the first section of the Tokyo Stock Luchange F e b r u a r y 7 , 1973 H. 13 Wo.596 Country IV SELECTED CENTRAL 8ASIK DISCOUNT RATES Current Rate In Effect Since P*e*mMS#We ftn Effect Saace E.E.C.: Belgium 5.0 France 7.50 Germany Italy Netherlands **United Kingd m Switzerland Dec. 21, 1972 4.5 Sov. 22, 1972 Sov. 3 0 , 1972 6.50 Sov. 2 , 1972 5.00 J a n 12, 1973 -4-5 • 4.0 A p r i l 10, 1972 4.5 O c t . 14, 1972 4.0 November 3 , *72 3.0 S e p t . 8 , 1972 8.75 J a n . 19, 1973 9.0 Dec. 22, 1972 4.50 J a n . 1 . 1973 3.75 S e p t . 1 5 , 1972 Sov. 3 0 . 1972 Canada 4.75 O c t . 25, 1971 5.25 F e b . 24, 1971 Japan 4.25 June 24, 1972 4.75 A p r i l 29, 1971 United States 5.00 | J a n . 15, 1973 4.50 Dec, 13, 1971 * * E f f e c t i v e October 13, 1972, t h e Bank of England r e p l a c e d i t s t r a d i t i o n a l Bank Rate w i t h a f l u c t u a t i n g " m i n i * * l e n d i n g r a t e " based on a v e r a g e T r e a s u r y b i l l tender r a t e . J a n u a r y 19, 1 9 7 3 . , . 8 . 7 5 IV2 i f LATEST FIGURES PLOTTED OH THE CHARTS J Chart Panel Series j 1 i 1A Upper Swiss franc U.K. pound French franc Japanese yen i Lower 1 1 16 Upper Belgian franc Italian lire Canadian dollar Gemtanetaric Dutch guilder Lower 28 Upper ' Lower 3A 38 4 5A Upper ' Middle Lower 38 Date ^ " " « Upper Lower / - Rale 4 fff 237.66 41,066 +2.330 *2.192 " A c t u a l Kate " 99*7 42,0f« » -*7 ( ^ 0 11 H German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen 2A J « " «« 43.02 41-65 -3,00 42,25 -003 M-A. German mark U.S. dollar Swiss franc French franc Jan. 26 Gold price, U.S. dollar per ounce Feb, 2 66,66 Overnight Euro S deposits Federal Funds Differential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Money U .K., 2-day Local Author. Deps. Canada, Day-to-day Loans France, Day-to-Day Money Germany, Call Money Netherlands. Call Money Jan, 3 1 5,08 6.3$ -0.47 " " " " " Fab, 2 " Jan. 26 Fab, 3 Jm. 26 Fab, 3 * Jan. 12 46,12 +3,15 43,19 42. IS 3.70 5.10 5.12 9.60 3-0? 730 6.13 4.30 IV-3 Chart Panel 6A Series Rate Date Euro-S Overnight Rate Feb. 2 6.62 Euro ) 1-month Rale SB 6.94 Euro-S 3-month Rale 7 OP Euro-S 6-month Rate 7A 7.00 Upper Euro-S 3-month Deposits Lower Differential " 40.64 Upper Euro-S 3-month Deposits " 6.69 Euro-S 3-month Deposits (Adj.) " 8.36 Jan. 31 6.69 U.S. Certificate of Deposits 76 U.S. Certificate of Deposits (Adj.) Lower 6.32 Differential: on Adj. Euro-S Deposits * 7 rv. on Unadj. Euro-S Deposits 8A Upper Euro-S 3-month Deposits Sfcesfidmg CD' e 8B Jan. 19 (covered) Differential 11 Upper Euro-S 3-month Deposits II „ Differential U.S. Treasury Bill rate Feb U.K. Treasury Bill rate „ Local Authority Deposit (uncovered) 96 Upper Spread (+= favor London) 2 6.16 5 64 -n 5 69 Ron 0*1 +9 3-month Forward Pound Lower -0.21 „ Local Authority Deposits (covered) 9A 6.16 5.95 Lower Lower -0.37 " - 6 04 Net Incentive (+= favor London) " -1.73 IV - 4 Chart Panel Series 10A Upper £swp-S Deposits (coweead) tale Me Jam. 31 4.19 «* 8.00 W n # la#a##dr U w We 108 11 Lower OHWWW Upper Ewo-$ Deposits (coiwad) •« Swiss Deposit ate M Lower Pillpwtijl M Upper CanadUm Finance Nper >3.81 5.31 12A 1 31 SM U S. T«enaiiy Bill ale Second 4.00# 5.6# Canadun T«e*wy Bill We •« U.S. Pnwe Finance paper (not plotted) H 3.84 5.75 Bill We diffwwrtial -1.85 rorwadCanatodaltar " +1.36 THM •let incentive en tells •« -0.48 Sottas Met incentive en Finance Paper " 40.86 Upper U.K. T«easuty Bill We « 8.00 U.S. Treasury Bill We w 5.69 Geonaa Interbank Loam We W 8.00 Lower Japanese Awerape We Canadian Treasury Bill We •maniti 6.751 Feb. 1 114 2 U.S. Treasury Bill We 128 Eino-S Deposits w 5.69 7.00 Swiss3 wonti Deposit We - U.S. Treasury Bill We - 4.00* 5.69 IV-5 Chart Panel Series 13 Upper Netherlands Rate Date Jan. 5 Canada United States TW Jan. 11i 77 Switzerland Middle -r* ff 57 Jan. 26 r— 9.71 U.S. Corp. Dollar E w o - t o n d s ^ ^ ^ p 7.68 U.S. Cocp. DM Euro-bonds ^ p 6-9* U.S. Corp. Aaa bonds 14 Upper Switzerland * Germany United States Middle United Kingdom Canada Lower 5 67 < 77 Germany United Kingdom Lower 7.16 7.08 7.06 7-11 7.19 ** Japan United States 7.15 Jan. 26 453.5 Jan. 31 316.2 Feb. 2 262.64 Jan. 26 257.54 Jan. 25 289.79 Jan. 27 925.35 Feb. 2 262.64 * Mew - Average yield of ALL German Public Authorities bonds made as Of banking key days. ** Beginning week ended September 5,1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Slock Exchange.
@FedFRASER