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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 H* 13 No. 282 BOARD OF GOVERNORS January 1 8 , 1967 CAPITAL MARKET DEVELOPMENTS ABROAD 1 I. II. 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 Chart S e r i e s , I. Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1967 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 1 - New Y o r k , London, M o n t r e a l : Yields for U . S . D o l l a r I n v e s t o r s on 3-month Funds 2 - 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 on 3-month Funds 3 - I n t e r e s t Arbitrage: Frankfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - I n t e r e s t Arbitrage: New York/London 6 - S h o r t - t e r m Bond Y i e l d s 7 - L o n g - t e r m Bond Y i e l d s 8 - S p o t Exchange R a t e s — M a j o r C u r r e n c i e s Against U.S. D o l l a r 9 - 3-month Forward Exchange R a t e s 10 - I n d u s t r i a l S t o c k I n d i c e s Europe and B r i t i s h Commonwealth S e c t i o n . OFFICIAL USE ONLY ( D e c o n t r o l l e d a f t e r s i x months) 1 NEW YORK, LONDON, MONTREAL; YIELDS FOR U . S . DOLLAR DOLLAR RATES: DEPOSIT INVESTORS O N NEW 3-MONTH FUNDS YORK-LONDON RO-DOLLAR DEPOSIT U S . ^ C E R T I F I C A T E O F D E P O S IT EURO-DOLLAR OVER | U . S . C E R T I F I C A T E OF D E P O S I T FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK CANADIAN FINANCE "COMPANYI K U.K. HIRE PURCHASE U.S. FINANCE COMPANY Mar. Jun. 1964 Sept. Dec' Mar. Jun. 1965 Sept. Dec. Mar. Jun. 1966 Sept. Dec. J L O N D O N ; YIELDS FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS EURO-DOLLAR DEPOSIT RATES 180 D A Y 90 DAY CALL 30 D A Y - | H I R E PUR C H ASE AN D L O C A LA UTH OR ITY DEPOS |T R ATES (covered) EURO-DOLLAR DEPOSIT HIRE P U R C H A S E 1 DIFFERENTIAL •FAVOR EURO-DOLLAR LOCAL AUTHORITY DEPOSIT EURO-DOLLAR DEPOSIT DIFFERENTIAL FAVOR*LOCAL AUTHORITY FAVOR EURO-DOLLAR 1964 1965 1966 [INTEREST A R B I T R A G E ; F R A N K F U R T / I O N P O N , FRANKFURT INTERBANK LOAN ZURICH/LONDON) RATE VS. L O N D O N EURO D O L L A R RATE ( C O V E R E D ) I N TERMS Oj INTERBANK LOAN RATE EURODOLLAR 1 r DIFFERENTIAL I ZURICH DEPOSIT RATE VS. LONDON EURO I DOLLAR ' FAVOR EURO-DOLLAR RATE ( C O V E R E D ) IN 'NCS TERMS/oVsWrt EURO-DOLLAR S W I S S DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR E U R O D O L L A R H PRICE OP G O L D IN L O N D O N 35.2 35.0 1964 1965 1966 5 INTEREST ARBITRAGE, 3-MONTH TREASURY UNITED S T A T E S / C A N A D A BILL RATES CAN. FIN. CO. (PAPER CANADA — ^ UNITED S T A T E S BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN DOLLAR S P R E A D IN FAVOR OF CANADA FORWARD RATE MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CA PRIME FINANCE PAPER FAVOR U S FAVOR CANADA TREASURY BILLS FAVOR U.S. I I I I I I I I INTEREST ARBITRAGE, Fridoy figures 3-MONTH TREASURY NEW BILL Y O R K / L O N D O N RATES U.K. LOCAL AUTHORITY D E P O S I T S NEW YORK ' RATE DIFFERENTIAL FORWARD AND - V I 3-MONTH STERLING S P R E A D IN F A V O R OF L O N D O N , »AY i i i i i i i i i RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER IN F A V O R OF L O N D O N IN F A V O R O F N E W YORK I I 1 1 I I I I 1 II 1 I I 1 I I I I I P NET INCENTIVE SHORT-TERM INTEREST RATES* U.K. I EURO-DOLLAR • LONDON U.S. SWITZERLAND JAPAN GERMANY CANADA US: 1962 * 1963 1964 1965 3 month treomry bill rates For oil countries except Jop on FfAveroge rale on bonk loom and discounts)' Switzerland:^ month depoiit ra\t>Y and Ger many (interbank Loan Rale) "f*"1 3 month rate far U S dollar deposit! in London 1966 •LONG-TERM BOND YIELDS GERMANY; A U.K. E U R O DOLLAR B O N D S H - 1 NETHERLANDS CANADA U.S. SWITZERLAND 1962 1963 1964 •/Averoge of yields lor lour foreign government dollor bondl quoted in London 1965 1966 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 1.6 S W I S S FRANC 1.2 G E R M A N MARK U.K. STERLING BELGIAN FRANC FRENCH FRANC DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA — V I J A P A N E S E YEN M J s 1964 0 S M 1965 0 M S 1966 D u 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS — NEW RATES YORK PREMIUM + G E R M A N MARK IT"'-' S W I S S FRANC POUND STERLING DISCOUNT- T DUTCH GUILDER 2 FRENCH FRANC C A N A D I A N DOLLAR DISCOUNT- A G A I N ST P O U N D STERLING — L O N D O N PREMIUM* S W I S S FRANC rA G E R M A N MARK U . S . DOLLAR DISCOUNTM J S I 1964 D S M 1965 D M J 1966 S D n 1 Chart 10 | INDUSTRIAL STOCK INDICES Ratio seal* 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 300 250 JAPAN 200 CANADA / ^ a V U.S. 150 100 1963 1964 Swm Bank Corporation industrial itoclr index Japan: mde* of 225 industrial and other stocks traded on the Tokyo exchange 1965 1966 January 18, 1967 H. 13 No.282 - Latest Figures Plotted in g . 1 3 Chart Series. 196 7 (#11 figures p#r cent per annum) Upper Panel Chart 1 (Wednesday, ( _) Euro-* Deposit 5. 59 U.S. eertif. of deposit Lover Panel (Friday, / Finance co. paper: ' U.S. Canada Hire-purchase paper, U.K. y .) ~ t w . 7,00 L3J 6. 20 Treasury bills: U.K. U.S. Spread favor U.K. +1.43 Bernard pound -0.63 Vet incentive (U.K. +) 40.80 Chart 6 (Friday. "an. L D SSSEEJ (Friday, Chart 3 (Friday, Jan, 'ar. n j Buro-$ deposits: *. 5.88 mm m Treasury bills: U.S. U.K. Canada Hire-purchase paper 6. 54 Euro-# deposit (London) Local-authority deposit 6 4! 5.50 Call 30-day 90-day 180-day 5,Q2 5n m J U 2Q m 4.76 Interbank loan rate (German) (~ an. 8 -15) (.ar. (ar 6) 6) Upper Panel Chart 3 (Period: __ Interbank loan (aid-point) 5, Euro-# deposit (average) 6.16 * Lower Panel (Date: Dec . J Zurich 3-me. deposit Price of gold (Friday, ( 35.:70 JLJ Chart 4 (Friday, u__) ;Treasury bills: Canada U.S. Spread favor Canada 4„ 77 Forward Canadian $ -0.19 Net Incentive (Canada +) - 0 . 20 Canadian finance paper 6. 25 *Zurich 3-mo. deposit (Date: Dec 15 Japan composlt rate (Date: 30 U.S. Gov't. (Wed.. 88 ) 4,38 ) 7.42 Jan. 1 1 ) 4c 37 U.K. War Loan (Thurs., Jan. 12) 6. 76 German Fed. (Fri., Jan. 13 ) 7.43 Swiss Confed. (Fri.. Jan. 13) 4.24 ' Canadian Gov't. (Wed., Jarul) 5. 68 Netherlands Gov't perpetual 31 (Friday,• a' 6 ) 5.85 Euro-# bonds (Fri., Jan. 13 ) 6.35 For descriptions and sources of data# see special supplement to 1.13, Number 239, March 16, 1966. •AJov. '.5 23 30 4.25 4. 38 4.50 Dec. 7 15 4.38 4 . 38
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