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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS KMMDOF OF THE f W M I l O T I f l W a i TABLE OF CONTENTS PART I. EXCHANGE RATES AMD GOLD PRICES Chart 1A and 8 - Spot Exchange Rates, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3A and 6 - 3-Month Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Chart 5 - Call Money Rates Chart 6A and B - London: Euro-) Deposit Rates Chart 7A and B - New York - London: Yields on U.S. Dollar Funds Chart 8A and B - London: Covered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B - Interest Arbitrage: U S-Germany and U.S.-Switzerland Chart 11 - Interest Arbitrage: United States-Canada Chart 12 A and B - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Stock 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 published under that title through December 31,1%8. The changes in the format and order of the charts are explained in the Supplement to the series, which accompanied issue dated January 1,1969. All series and their sources are fully described in a Supplement dated January 1,1972. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U-S. DOLLAR Weekly averages J GERMAN MARK ZX AJ \_>X •1UC . POUND f i P VV_J \ / rx X-A^ ' W SWISS FRANC : . 1 : ! L ! , 1 1 I1 ! 1 1 1 DUTCH GUILDER FRENCH FRANC JAPANESE YEN — 1972 * Pound floated June 23. 1972 1973 1 1 1 1 1 1 ^1 V| Chart IB SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Fee cent FRANC against US ITALIMI M S D « 1972 J s D 1973 Ratio scale. U S cents Ratio scale, U S cents 100 CANADIAN DOLLAR 260 240 : i n 1970 1971 1972 i 1973 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR May 11, 1971 - Dec 17, 1971 Weekly averages Per cent JAPAN U.S. MAY JUNE JULY AUG SEPT 1971 * Financial franc OCT. NOV. DEC Chart I D SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAWST U£. DOUAR 11. i » / i - Dec 1/ iy/i u x SMflTZ. ITALY UJC. ITALY US swrrz MAY JUNE JULY AUG. *For clarity the vertical scale is double that used in 1C SEPT. OCT NOV DEC. 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Weekly averages Per PREMIUM CANADIAN DOLLAR UJC. POUND DISCOUNT - PREMIUM GERMAN DISCOUNT PREMIUM DUTCH GUILDER DISCOUNT - S 1970 D S 1971 * Canadian Dollar Rate not supported by Bank of Canada D J 1972 S D M J 1973 S D % Chart 2B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Weekly awe, ages Pefcefltpefennum 1 ' ' : ' 1 ' 1 1 ! ! M I j 1 ! | 1 1 J 1 1 I 1 | 1 1 | 1 1 | 1 1 PREMIUM • FRENCH FRANC - - X/ x DISCOUNT - — — PREMIUM • SWISS FRANC ~ v \ Vx/VY vyT DISCOUNT 1 1 1 1 1 1 I I M J 1 1 1 S D 1970 1 i i i M M i i J 1971 i i S 1 1 1 1 1 1 1 1 1 1 1 M D M J 1972 S 0 M 1 I i 1 I I 1 1 1 M J 1973 S D 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM + : - - - j li ! 1 V Vv GERMAN MARK 1 I U S DOLLAR - - DISCOUNT - ! 1i ! i 1 i ! I 1 M J S i i U D 1970 M I I 111 i i 1i ! i ! i , U J 1971 S D M J S 1972 I I , i i i i I i ! i i 1i i D M J S 1973 D Chart 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U K. POUND Friday figures Per cent per annum PREMIUM SWISS FRANC FRENCH FRANC s s 1970 1971 D S 1972 0 M S 1973 o GOLD PRICE IN LONDON. 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per 6mm ounce SO 60 50 40 S S D 1970 1971 D J 1972 S 0 M J 1973 s o Chart 5A CALL MONEY RATES DOLLAR FUNDS Per cent per annum Weekly averages 14 OVERNIGHT EURO-DOLLAR DEPOSITS FEDERAL FUNDS DIFFERENTIAL FAVOR EURO-DOLLAR EURO-DOLLAR OVER FEDERAL FUNDS \ v VV 1/V 1 1 1 1 1 1 i w v 1 1 1 1 i i m j l 1 i i I i i 1 i i i i 1 i i 1 i i FAVOR FEDERAL FUNDS 1 i i II 1 1 1 f 1 1 1 1 1 EURO-CURRENCIES Weekly averages Per cent per annum EURO-SWISS FRANC I I I I I M J S D 1970 M J S D M 1971 * Changed from CALL to OVERNIGHT Euro dollar deposits, May 10, 1971 J S 1972 D M J I I I I I S 1973 D 13 Chart 5 8 CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum nn •• i i 1 i i 1 I i 1 i FRANCE. / - |TLrv\ 11 11 11 1 1 1 1 1 f v yUj *THER LAI I 1 l I | l i i ii ITT1 i i 1 i i ! i i 1 i i 1 i i • - - JAPAN CANADA i i 1 ! i 1 i r . , : i . M J i i i i M — S D i M 1970 f ; M i I i i i i i i i i i i ii T : : i ! 1 : 1 11 i I I i I 1 i ! I I 1 I 1 I I 1 1 1 1 i I I J S 1971 D M J S D M 1972 France, Day-to-day Money, Netherlands, Call Money, weekly average; Japan, Unconditional M o n e y ; Canada. D*y to day Leans, weekly average; Germany. Call Money; U K , 2 day Local Authority Deposits J S 1973 D 0 Chart 6A LONDON: EURO DOLLAR DEPOSIT RATES Friday figures 25.50 M S D M 1969 J S 1970 * M a y 12, 71-changed to Overnight Euro-Dollar Deposits * * July 1 -changed to 7-Day Euro-Dollar D M J 1971 S D M J 1972 s D LONDON: EURO DOLLAR DEPOSIT RATES Friday figures M P«r c e e t p e r w w * J S D 1969 M J 1970 S D M J S 1971 O M J S 1972 O NEW YORK-LONDON: YIELDS ON U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per annum 1 Ky yJ /XrVV u i \ ! U S. CI•RTIFICATE OF DEPOSIT i ! ! : 11111111 1 1! 1I 1! 1 10 EURO DOLLAR DEPOSIT | V 1 11i i ! i i i i i i i i DIFFERENTIAL i i ! i i 1i i l l FAVOR EURO DOLLAR ! AA \J\JV A Am r t w Z - ElIRO DOLLAR OVER U.S. 0 ERTIFICATE OF DEPOSIT I i i 1i i ! i i 1 i i i i 1i i 1i i 1i i M J S D M 1969 J 1970 S D 1 11! 1! 11111 M J S 1971 D II M 1 1 1 1 II J S 1972 1 11 O Chart 78 NEW YORK-LONDON: COST OF US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET WtdMiday figures Per cent per EURO-DOLLAR DEPOSIT US. CERTIFICATE Of DEPOSIT ADJUSTED ** / V V n v 1 - . l i 1 j / k - v j * t / y v EIMMOUMOW US. CERTTICATE 1 1 I 1 11 1 11 M m j s o ADJUSTED II 1 II m j IMS 1 1 11 1 1 s d 1970 * Adjusted for Reserve R***ir«m#m* * * Adjusted for 10% Marginal « « * * Reqwreweot * # * A d i u s t e d for 20% Marginal Reserve Requirement 1 VV\ ^ * A V \ J K j v \ J K / V v , i i 1 i i J i i 1j i . i i 1i i 1 i i 1 i i m j s d m j 0 1971 1972 \ y ; LONDON: COVERED YIELDS ON US. DOLLAR FUNDS hire purchase and euro-dollar Friday figures rates EURO D O L L A R DEPOSIT HIRE PURCHASE COVERED STERUNG CD s I 1 1 I I FAVOR STERLING CD's i differential W J I S D 1969 M J S D 1970 * Hire Purchase temporarily suspended as of August 11 * * Sterling Certificates of Deposit started as of August 11 M J S 1971 D W I I I I J 1*72 I I S I I D I Chart 8 8 LONDON: COVERED YIELDS ON U S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO-DOLLAR RATES Friday figures 1 — : / y w y / Em•O-OOLUUI DEPOSIT - LOCAL AUTMOWTY DEPOSIT COVtRtD - 1 1 1 1 1 1 1 1 1 1 1 i i 1 ii 1 i i 1 i l l _j.-i_Lu.Lu 1 i i i i 1 i i 1 i i 1 i i favor local authority DIFFERENTIAL 1 I 1 I I 1 I I I I 1 II I I I 1 I 1 I I 1 fawwbuwmoum I I I I I I I I I I I 12 Chart 9A WTEREST ARBITRAGE: UWTED STATES AMD UMTEO KMCOO# Friday figures Per cent per 1 3-month treasury b l l rates 1 , N / A . *j J — ^ ^ a \ ~ k " V u j l l o c a l alltmoofty d e f o o t s * uwcovered 1 a l * v n x v i \ A h - 1 1 1 i 1 1 ii 1969 * Plotted for comparison purposes 1 1 1 1 i i 1970 1 1 1 Jl \ A v \ 1 1 1 ii I\ J vcwrow 7 i i % 1 1 1 1 1 1 1 i i 1971 i 1 1 i j 1 i l 1 i i 1972 >1 OhwtSB i i E K I I fiiill " M M f l M E : I W I B D STATES AMD I M P E D K M C O O M fferctatpar 4 34I0MTM fOfSMM) STGRUHG + # 2 4 * • J# OtSCOUMT fAVO* LOWOOW 12 4 2 + • 2 4 6 • FAVOR * € W YORK M J S 0 1999 a# J 1970 S o M J 1971 $ 0 M i 1972 $ 0 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE; EURO-DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE Wednesday rates Fer C M t per a W TERMS OF - EURO-DOLLAR FAVOR FRANKFURT differential S D 1969 — — —No quotation J 1970 s D M J 1971 S D « J 1972 S D Chart 106 3-MONTH FUNDS INTEREST ARBITRAGE: EURODOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Per cent per ewHwi M TERMS OF SWISS FRANCS SWISS DEPOSIT BATE i i i i i i i i i i i i i i i i J i i i i i hr i i i i i i i i i DIFFERENTIAL I I I i I I I I 1I I I M No quotation favor eu«o-dollar 1 I I 1 I I I I I 1 I I I I I 1 I I I I I 1 M .1 I I I I I I Chart 11 3-MONTH INTEREST ARBITRAGE: UWTED STATES • CANADA Friday figures Pwceetper* P ~ T | M 1 I I | I I j l ! ] I l 1 I i | I I | I | | | i | M | i i ] I i | 11 I J - b i l l rates UWTED STATES TREASURY mus 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 GROSS SPREAD W FAVOR OF CANADA I covered rate d i f f e r e n t i a l s FAKWCAilAOA TREASURY BILLS FAVW U S PRIME FWAWCE PAPER 0 FAVOR U S i i J l i _ L i i i 11_. j i J i l I j W J S D 1969 M J 197c S O W J l L l S 1971 D 1 I I I I 1I I I I I W J S 1972 D Chart 12A SELECTED SHORT-TERM INTEREST RATES* Per cent per annum UJL " - J#JPAN VT ~~ rxj \\us. t Z\ CANAOA\ Va! - I I 1 I I ! I I 1 M I I 1 I I 1 I I 1 I 11 I 1 1 1 1 1 1 1M 11 1I I 1 I I 1 M111111 J 1111 1968 1970 * 3-month treasury bill rates for all countries except Japan(Average rate on bank loans and discounts) and Germany!Interbank Loan Rate) 1972 Chart 128 SELECTED SHORT-TERM INTEREST RATES * Pef cent per annum EURO-DOLLAR - 1970 * S-montti treasury M l rate for U.S., Swiizertand-B montti deposit rate • • 3-montti rate for U S dollar deposits m London IS72 LONG-TERM BOND YIELDS Weekly figures i ! WDS jsT y\ s w i t z e r l A N D " I ! ' 1 ! ; . ; ; 1 1 1 i 1 i i 1 l ! ! i 1 i i 1 i ; 1 I i i 1 1 1 1 1 1 : 1 1 i 1 ~ t 1 1 1 1 1 1 1 1 I 1 1 11 [ UJK. if \ T \ yU ; v - a T L v j 1 - "—" ; I I M ! I ! 1 I I 1 I 1 1 II i 1 M 1 1 I I 1 I 1 1 I I 1 II 1 1 1 1 1 1 1 1 1 i I 1 1 i 1 I I 1 1 1 Monthly figures U.S. C O R P . A a a B O N D S I U S. C O R P . D M E U R O - B O N D S 1968 i 1 i i 1 i i I i i 1 i i I i i 1 I i 1969 1970 i i 1 l I 1 i i I l l 1971 l I I 1 I I l I I 1 I 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. 4 **#=**) I I 1 I I 1 I I ,1 I I I I I 1 I V r I I l l l l l l l i 1 ll <il l l i l l l i j j Japan rodee of 225 industrial and other stocks traded on Tokyo e a c h * * * **J*pan widex of all industrial end e H w stocks traded on the Wst section of fee Tokyo Stack L t c t o n l l l i l J a n u a r y 17, 1973 H. 13 No. 5 9 3 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since EEC.: Belgium 5.0 France 7.50 lov. 30, 5.00 Jan 12, 4.0 April Germany Italy Dec. 21, 1972 4.5 Nov. 22, 1972 6.50 Hov. 1973 5.0 10, 2, 4.5 Oct. 14, Netherlands 4.0 November 3 , *72 3.0 Sept. * * U n i t e d K i n g d nn 9.0 Dec. 22, 8.0 Dec. 8 , Switzerland 3.75 Sept. 15, 1972 3.0 4.75 Oct. 25, 1971 5.25 Feb. Japan 4.25 June 2 4 , 1972 4.75 April United States 5.00 1973 4.50 Dec. 15, 1972 1972 8, 1972 1972 J u l y 10,1072 Canada | Jan. 1972 Nov. 30. 1972 1972 1972 24, 29, 1971 1971 13, 1971 * * E f f e c t i v e O c t o b e r 1 3 , 1972, t h e Bank o f E n g l a n d r e p l a c e d i t s t r a d i t i o n a l Bank R a t e 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 " b a s e d o n a v e r a g e T r e a s u r y b i l l tender r a t e . December 2 2 , 1 9 7 2 . . . . 9 . 0 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel 1A Upper Series Lower Belgian franc kalian lire Canadian dollar German mark Dutch guilder Lower Upper Lower 3A 3B 4 5A Upper Middle Lower 56 j i j Upper j Lower 12 " +2.052 235.16 40.558 +2.037 " " +1.460 -0.786 " A c t u a l Rate 100.04 " German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen 2A ZB A c t u a l Rate French franc Japanese yen Upper Rate Jan. Swiss franc U.K. pound IB Date " 40.534 " „ 40.569 +2.20 " 40.47 •• " -3.43 +1.38 " +0.62 " -1.82 N.A. " H German mark U.S. dollar Swiss franc French franc " +3.10 " +1.60 Gold price, U.S. dollar per ounce M 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 Trance, Day-to Day Money Germany, Call Money Netherlands. Call Money +5.71 +2.97 " Jan. 65.08 10 " 5.89 5.66 " 0.23 Jan. 12 1.42 5.50 Dec. 29 4.88 Dec. 22 8.00 3.60 J a n 10 Jan. 12 Jan, 5 7.00 6.19 4.47 1 V IV - 3 Chart Panel Series Eiw>-S Overnight Rate 6A Rate Date Jan. 12 Euro-S 1-month Rate 6.19 Euro-S 3-month Rate 66 M 6.00 Euro-S 6-month Rate 7A 78 Upper Euro-) 3-month Deposits 6.19 U.S. Certificate of Deposits „ Lower Differential It Upper Euro-) 3-month Deposits II Jan. Euro-S 3-month Deposits (Adj.) Differential: on Adj. Euro-S Deposits Upper Euro-S 3-month Deposits Lower Differential Upper Euro-S 3-month Deposits Lower Differential Hire Purchase Deposits (covered) 86 Local Authority Deposits (covered) U.S. Treasury Bill rate 9A 96 Upper Jan. Local Authority Deposit (uncovered) J£: 3-month Forward Pound Lower Net Incentive (+= favor London) 22 29 22 29 22 29 22 29 22 D e c . 29 Jan. 7.35 5.92 +1.43 Dec. 22 i w „ 9Q U.K. Treasury Bill rate Spread (+= favor London) 5.88 II Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 5.88 5.70 +0.18 " on Unadj. Euro-S Deposits 8A 10 „ U.S. Certificate of Deposits (Adj.) Lower 5.81 12 12 +0.04 6.16 5.91 6.00 5.25 -0.16 -0.66 6.16 5.91 4.81 S.1Q -1.35 - 0 79 5.19 8.15 P 12 8:84 8.93 Tan. 19 +2.96 Jan. -3.50 -0.54 » • IV-4 Chart Panel Series 10A Upper £uro-$ Deposits (coveted) Jan. 10 3.84 » 8.25 German interbank Loan rate 108 11 Rate Dale Lower Differential " Upper Bufo-S Deposits (covered) •• Swiss Deposit rale M Lower Differential Upper Canadian Finance Paper 44,41 5,70 4.00, -1.70 Jan. 17 U.S. Treasury Bill rale " 3,66 U.S. Prime Finance paper (not pkitted) « 5.38 Bill rate differential « -1.53 Forward Canadian dollar " 40,68 Third Net incentive on bills " -0.85 Bottom Net incentive on Finance Paper " +0.55 Upper U.K. Treasury Bill rate " 8.15 U.S. Treasury Bill rate " 5.19 German Interbank Loan rate Jan. 10 8.25 Japanese Average rate November 6.751 Jan. 19 3 66 Second 12A < ip Canadian Treasury Bill rate Lower Canadian Treasury Bill rate U.S. Treasury Bill rate 126 < io Euro-* Deposits « 6.00 Swiss 3-month Deposit rate " 4.00p •• 5.19 U.S. Treasury Bill rate t ) IV 5 Chut Panel Series 13 Upper Metherlands Middle Da* Jan. 5 Dec. 27 6.71 United Stales Dec. 27 5.47 SwitzeHand Dec. 22 5.31 Dec. 22 8.56 .T*n - 5 9.34 November 7.68 Germany U.S. Coip. Dollar Euro h o n d ^ ^ U.S. Corp. 00 Euro U.S. Corp. Aaa bonds 14 Upper Switzerland * Germany United Stales Middle United Kingdom Canada Lower 7.04 Canada United K i n g * * Lower Me ** Japan United States i F ga-rgg p •« December 6.94 7.08 Jan. 5 454.7 Jan. 5 Jan. 5 J a n . 12 Jan. 5 J a n . 12 300.4 271.33 272.06 284.97 284.14 Jan. 4 291.65 Jan. 6 Jan. 5 J a n . 12 919.48 271.33 272.06 * New - Average yield of ALL German Public Authorities bonds made as off 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 Stock Exchange.
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