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m, i r o wm. m r . - .\ - SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. x \ TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1A and B - Spot Exchange Riles, Major Currencies against U S. Dollar Chart 2A and B - 3 Month Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3A and B - 3 Month Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Charts -Call Money Rales Chart 6A and B -London: Euro-$ Deposit Rales Chart 7A and B - Mew York - London: Yields on U S. Dollar Funds Chart 8A and B - London: Cowered Yields on U.S. Dollar Funds Chart fA and B - Interest Arbitrage: United SWes4#nited Kingdom Chart 10A and B - Interest Arbitrage: U.S. Genaamy and U.S.-Swftaertand Chart 11 - Interest Arbitrage: United Stales-Cauria Chart 12 A and B - Selected Short-tera Merest Rales PART III. LONG-TERM INTEREST RATES AMD STOCK INDICES Chart 13 Chart 14 - Long-Tew Bond Yields - Industrial Slock Indices * PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, which was pi*tished under that title through December 31, M M . The changes in the knot and order of the charts are explained in the <Twppl w n f to the series, #duch arrompmird issue dated January 1,1%9 All series and their sources are hilly described in a fupplpwrnt dated January 1,1172. 3 Chart 1A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Weekly averages 1 Per cent GERMAN MARK I.K. POUND SWISS FRANC ! DUTCH GUILDER FRENCH FRANC US JAPANESE YEN M J 1972 • P o u n d f l o a t e d June 23. 1972 S D W J 1973 S D 4 SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. Weekly averages ITALIAN LIRA 1973 Ratio scale. U S cents Ratio scale, U S cents jT - x 100 CANADIAN DOLLAR u a POUND 260 - 1 240 1 1 1 1 1 1 1 1 1 M M j S i II D 1970 ! II W 1 II J 1971 S 1 I 1 D II M 1 II J 1 1 1 i II S 1972 O i i ! i i 1 i i 1 i i W J S 1973 O Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR May 11. 1971 - Weekly averages Dec. 17, 1971 Per GERMANY NETHERLANDS FRANCE JAPAN MAY JUNE JULY SEPT. AUG. 1971 * Financial franc OCT NOV. DEC. b Chart 10 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR 11. 1 9 7 1 - Dec. 17, 1971 cent BELGIUM UX swrrz. ITALY U.K. ITALY v.«. swrrz. MAY JUNE JULY AUG. SEPT 1971 *For clarity the vertical scale is dowMe that weed im 1C OCT. NOV. DEC. 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Weekly a v e r a g e s PREMIUM CANADIAN DOLLAR U K. POUND DISCOUNT - PREMIUM GERMAN MARK DISCOUNT - PREMIUM + DUTCH GUILDER DISCOUNT - S D 1970 * S 1971 C a n a d i a n D o l l a r Rate not s u p p o r t e d by B a n k of Canada D M J 1972 S D M J 1973 S D 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Miwm Weekly averages I | I I | I I | 12 I I I ! ! I I PREMIUM e 4 + 0 DISCOUNT 4 4 + 0 DISCOUNT I I I 1 I I 1 I I 1 I I 1 I I I M 4 C h a r t 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM GERMAN MARK U S. DOLLAR DISCOUNT - M S D 1970 1971 D M J 1972 S D M J 1973 S D Chart 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC. POUND Friday figures Per cent per annum PREMIUM • - | - SWISS/RAI#C h r\J \ ifi\ l u l l r A ! \/7 I L jV FRENCH FRANC ! i DISCOUNT - 1 i 1 m ! ! ! I j s 1970 ! i : d i : ! m j s 1971 1 i 1 d i I I m I ! j i i i ! s 1972 ! 1 i. o I m i i 1 I j 1 l s 1973 > i d ll Chart 4 GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per fine mmce §0 70 60 SO M J S 0 1970 M J 1971 S D M J 1972 s 0 M J 1S73 s 0 I Chart 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per a n n u m OVERNIGHT EURO-DOLLAR DEPOSITS CALL EURO-DOLLAR DEPOSITS FEDERAL FUNDS 2 FAVOR EURO-DOLLAR OVER FEDERAL FUNDS EURO-DOLLAR EURO-CURRENCIES Weekly averages Per cent per a n n 8 EURO-DM 4 + 0 EURO-SWISS FRANC M S D 1970 S D 1971 * Changed f r o m CALL to OVERNIGHT Euro d o l l a r deposits, May 10, 1971 S 1972 D M S 1973 D Chart SB CALL MONEY KATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum 12 ^ - emADA 1 1 1 1 1 1 1 1 1 I 1 i i 1 i i 1 i i I i i II 1 1 1 1 1 1 1 1 1 i i 1 i i 1 i i 1 i i - - - lyulfccaaiAinr i i 1 i i i i i 1 i i M J S M D 1970 1 M S 1 1 1 1 1 1 J 1971 S D I i 1 i i 1 i i 1 i i M J S D i i 1 i i 1 i i 1 i i M 1972 France, Day-to-day Money; Netherlands, Call Money, weekly awera§e; Japan, Unconditional Money; Canada, Day-to-day Loans, weekly average, Germany, Call Money; U-K , 2-day Local Authority Deposits J S 1973 D LONDON: EURO DOLLAR DEPOSIT RATES Friday f i g u r e s Per cent per a n n u m OVERNIGHT 1 MONTH I I I I 1 I M * M a y 12 ' 7 1 - c h a n g e d to O v e r n i g h t Euro-Dollar Deposits **July 1 - c h a n g e d to 7 Day Euro Dollar Chart 6 8 LONDON: EURO DOLLAR DEPOSIT RATES Friday figures Per cant par ana urn I L ft /i rV *\ l/U A vv r ^ ji I A j v \A / i L V r ^ 3 4 W ) I I T M ifi A ^ ^ f i ' V V ! !i1 i :!i i i i : . 1 i M J S D M 1969 i : J !i 1 1 I S 1970 D i 1 1 1 M I 1 1 1 I I J 1971 S 1 1 1 D I I M 1 1 1 1 1 1 1 1 1 J S 1972 O w Chart 7A NEW YORK-LONDON: YIELDS ON US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per annum | 1 J 12 \JS fj AA/i \ 10 E U K M M U A * DEPOSIT t\A L as. a 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I I 1 v v X L r iSTFICATE Of DEPOSIT ii ! I i i i 1 i i 1111111111 DIFFERENTIAL ' AAM R L WVX/1 A A J\j\f K 1 E l IRODOLLAP OVER U.S. CERTIFICATE OF DEPOSIT1 j i i 1 i i ! i i ! i ! M J • i FAVOR EURODOLLAR S D i l i I l 1 I I , ! i i , M 1969 J 1970 S D M ' : I ! ! I J S 1971 D - j r 1 1 M v v A 1 1 1 1 1 J S 1972 1 1 O Chart 76 NEW YORK-LONDON: COST OF U J . DOLLAR FUNDS 3-month d o l l a r deposit r a t e s - p r i m a r y m a r k e t Wednesday figures Pe< cent p « annum EWO-DOUAlt DEPOSIT ADJUSTED EUlflO-DOLLAR DEPOSIT u-s. CERTIFICATE OF DEPOSIT ADJUSTED I " ' ' ' 4 1 • ' I - "W r'f^f V v V: i euro-dollar over / ^ ' a ^ v > ' u s c e r t i f i c a t e o f d e^p o>s i t . - 7 C 1969 1970 * Adjusted tcr Reserve Requirement * * Adjusted lof 10*. Marginal Reserve Requirement * * * A d | u s t e d tcr 20"c Marg.nal Reserve Requirement M 1 I 1 w J 1971 w S . L 1972 v Chart 8A LONDON: COVERED YIELDS ON U S DOLLAR FUNDS hire purchase and euro-dollar r a t e s Friday figures : JX n[ > -r — \ EURO-DOLLAR DEPOSlT An - u / ! /' r . M K PURCHASE COVERED SIBUKWt - 1 1 1 1 1 1 M i i i 1 1 1 1 M i M i M 1 1 1 1 1 1 1 1 1 1 1 H m L f\ - D I F F E R !E N T 1 A L 1 I l l l i l i i M J S , • M 1969 ! : ! J h : ! S 1970 Hire Purchase temporarily suspended as of August 11 * * 1 1 1 1 1 1 1 1 1 F/Uroe STCRLMG CD'S Sterling Certificates o* L-epc<-it started as cf August 1 : ; • L I I 1 i | : a 1 i D ! 1 1 h W 1 i J M S 1971 1 1 1 M D 1 'l T l " m J 1972 T m S 1 D 12 Chart 86 LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS l o c a l a u t h o r i t y and e u r o - d o l l a r r a t e s Friday figures Per c#*t p e r w w u e EURO DOLLAR DEPOSIT DEPOSIT t COVERED FAVOR LOCAL AUTHORITY FAVOR EURO DOLLAR DIFFERENTIAL 1970 1971 1972 Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per a n n u m 3-month t r e a s u r y b i l l r a t e s U.K. LOCAL AUTHORITY DEPOSITS UNCOVERED I LONDON NEW YORK S D 1969 * Plottec tor r c m p a r i s o n p u r p o s e s M J 1970 S D D 1971 J 1972 S D ClMrt9B INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum RATE DIFFERENTIAL AMD 3-MONTH FORWARD STERLING I SPREAD M FAVOR OF LONDON FORWARD RATE 4 DISCOUNT 12 4 DIFFERENTIAL FAVOR HEW YORK M J S D M i960 J 1970 S D M J 1971 S D M J 1972 S 0 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Per cent perannum Wednesday rates IN TERMS OF DM GERMAN INTERBANK LOAN RATE 10 EURO-DOLLAR COVERED DIFFERENTIAL ! K V O F FRANKFURT FAVOR EURO-DOLLAR c 1969 No quotation M S D 1970 1971 D M J 1972 S D ClwtlOS 34S0NTH 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 RATE DIFFERENTIAL f<wo* Euao-oouA* s M D M 19S9 Wo quotation J 1970 s D M J 1971 s 0 M J 1972 s 0 Chart 11 3-MONTH INTEREST AJOTRACE UNITED STATES - CANADA Friday figures n I I I I I I I T 1 I I 1 i j 1 i ] " I b i l l rates UNITED STATES TREASURY BILLS b i l l r a t e d i f f e r e n t i a l and f o r w a r d canadian d o l l a r FORWARD RATE covered rate differentials FINANCE PAPER ^ / v I i i ! i i I i i 1 i i 1 i i 1 i i M j S 1969 D M J S 1970 O i / A y \ r y ^ I I I I I I I I I I I M J S D 1971 / • ^ y v , fAwoe u * I I I I I I I I I I M j f 0 1972 / Chart 12A SELECTED SHORT-TERM INTEREST RATES' Per cent per annum 10 11 i I I I 1 1 1 - \n - JMypah ' - \\u s. Z\ camao* - ' 1 1 1 1 1 1 i i i i i li 1 l l 1 l i 1 l i1 1 1 1 1 i i i 1 1i i 11 i i 1 i i 1 i i1 1 1 1 1 1 1 1 1 1 1 1968 1970 3-month treasury bill rates for all countries except Japan(Awerage rate on bank loans and discounts) and Germany(Interbank Loan Hate) 1972 Chart 12B SELECTED SHORT-TERM INTEREST RATES* Pef cent per annum EURO-DOLLAR - LONDON Mi. wn tommy m * * O r iis.,fi * « UUin * ler US. Mtor Chart 13 LONG-TERM BOND YIELDS Weekly figures Per cent per annum 10 NETHERLANDS CANADA US. US SWITZERLAND T 11 MM. 10 T U.S. CORP. DOLLAR EURO-BONDS Monthly figures U S. CORP. Aaa BONDS U.S. CORP. DM EURO-BONDS- 1968 1969 1970 1971 1972 * New series for Switzerland starts 8 2-68, U.S. Corp Dollar Euro-Bonds and U.S. Corp. DM Euro-Bonds starts 12-70. * * New Average yield of all German P A. Bonds begins 1 7 69 * * * New series F starts 12-71 January 10, 1973 H. 13 No. 592 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate hi Effect Since Previous Rate In Effect Since E.E.C.: Belgium 5.0 France 7.50 Germany 4.50 " Italy 4.0 Dec. 21, 1972 fov. 3 0 , 1972 .. M 4.5 6.50 * o v . 2 2 , 1972 MOT. 2 , 1972 4.00 tt n •• April 10, 1972 4.5 Oct, 14, 1972 Netherlands 4.0 November 3, *72 3.0 Sept. 8, 1972 **United Kingd MB 9.0 Dec. 2 2 , 1972 8.0 Dec. 8 , 1972 3.0 Switzerland 3.75 Sept. 15, 1972 Canada 4.75 Oct. 2 5 , 1971 5.25 Feb. 2 4 , 1971 Japan 4.25 June 24, 1972 4.75 April 29, 1971 United States 4.50 Dec. 13, 1971 4.75 Nov. 1 1 , 1971 July 10, 1972 **E£fective October 13, 1972, the Bank of England replaced its traditional Bank Rate with a fluctuating n ni1ni— lending rate" based on iwnriy Treasury bill tender rate. December 22, 1972--,,9,0 .v-2 " y LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel 1A Upper Swiss franc Lower U K. pound French franc Japanese yen IB Series Upper 2A j " " .. " " M H German mart Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Upper Lower ; 3A 38 German mark U S dollar Swiss French franc Rate Jan. 5 ACTUAL BATE Belgian franc Italian lire Canadian dollar German mart Dutch guilder Lower 28 Date H +1.942 234.95 -0.184 +2.214 +1.483 -0.688 100.23 40.552 +0.454 +2.13 +0.48 -3.21 +1.29 40.50 " „ | franc | -2.09 M.A. +5,31 +2.79 +2.77 +1.02 1 4 5A Upper Overnight Euro-S deposits Federal Funds Diffevential tti Euro-currencies lltddle Lower j SB 65.14 Gold price U S dollar per ounce Upper Lower | I EuroDM Euro Swiss Fr. Japan, Unconditional Money U K , 2-day Local AtAor. Deps. Canada. Day-to-day Loans France. Day-to-Day Money Gemmany Call Money HHberlands Call money Dec. 2 7 Jam. 3 5.16r 5.09 Jan. 3 5.61 c . 27 J t e u l - 0 . 1 8 r -0.52 Jam. 5 2.39 3.78 Dec. 29 4.88 Bee- 2 2 Jam. 3 8.88 3.63 Jaa. 5 7.2$ 6.12 Bee. 2 9 j j IV-3 Chart Panel 6A Series Rale Date Euro ) Overnight Rate Jan. 5 Euro-S 1-month Rate 66 Upper Euro-$ 3-month Deposits Jan. 3 5.68 Differential Euro-S 3-month Deposits .. 5.94 Euro-S 3-month Deposits (Adj.) .. 7.42 U.S. Certificate of Deposits (Adj.) ,, Differential: on Adj. Euro-S Deposits „ +P 26 Upper Euro-$ 3-month Deposits Lower Differential Hire Purchase Deposits (covered) Upper Euro-S 3-month Deposits Local Authority Deposits (covered) Lower Differential U.S. Treasury Bill rate 9A U.K. Treasury Bill rate Local Authority Deposit (uncovered) 9B 5.94 „ Lower on Unadj. Euro-S Deposits 8B 6.19 Upper Lower 8A " 5 81 U.S. Certificate of Deposits 7B 6.00 Euro ) 3-month Rate Euro-S 6-month Rate 7A 5.62 „ Upper Spread (+= favor London) 3-month Forward Pound Lower Net Incentive (+= favor London) .. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 5.79 +1.63 40.15 6.03 6.16 4.89 6.00 -1.14 -0.16 6.03 6.16 5.01 4.81 -1.02 -1.35 15 22 15 22 15 22 15 22 15 22 15 22 Jan. 5 5.05 it 8.17 Dec. 22 8.62 Jan. 5 +3.12 .. -3.29 i -0.17 IV -4 Chart Pmel 10A Upper 108 Ei*o-S Departs (coweeed) Jan, 3 3,76 C w g i Mdfcanfc Lorn file « 8,00 Lower D##emtial Upper Eiwo-S Deposits (coveted) <*,24 5,65 Swiss Deposit rale Lower 11 Upper tale Me Series «< „ Differential 4.00p Canadta Finance Piper U.S. Treasury Bill W e 5,05 « Canadian Treasury Bill rate 3,64 U.S. Prime Finance Mper (not plotted) Second 12A " 5,38 Bill rale differential " Forward Canadian dollar » Third Met incentive on bills •« -0,89 Bottom Met incentive on Finance Paper •« 40,39 Upper U.K. Treasury Bill rale •« 8,17 U.S. Treasury Bill rale " Gem an toteifcank Loan rate Lower Japanese Average rate Canadian Treasury Bill rate Eimo-S Deposits •*0,52 5,05 Jan, 3 8,00 _____ 6.775 Jan, 5 3.64 U.S. Treasury Bill rate 126 -1,41 sos H Swiss 3-eomh Deposit rate 5,81 4,00# U.S. Treasury Bill rate " 5-6?f •3 IV-5 Chart Panel Series 13 Upper Netherlands Dale Canada U n i t e d States Switzerland Middle Germany U n i t e d Kingdom Lower U.S. Corp. D o l l » E u r o - b o n d s s E R l E S U . S . Corp. D M Euro-bonds U.S. Corp. A a a bonds 14 Upper Switzerland * Germany Middle Dec. 29 6.99 Dec. 27 6.71 Dec. 27 5.47 Dec. 22 5.31 Dec. 22 8.56 Dec. 99 9.78 November 7.68 .. 6.94 December Dec. 29 M United States « U n i t e d Kingdom U Canada Lower p Rate ** Japan 7.08 444.2 290.4 265.66 283.45 Dec. 21 Dec. 23 Dec. 30 285.61 852.92 892.48 Dec. 29 265.66 United States 1 ! * New -- 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.
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