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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 BOARD OF GOVERNOR# ^ No. 231 January 19, 1966. \CAPITAL MARKET DEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H,13 Chart Series, 1966 Ten Charts on Financial Markets Abroad Chart 1 Chart Chart Chart Chart Chart Chart Chart Chart Chart - New York, London, Montreal: International Money Market Yields for U.S. Dollar Investors on 3-month Funds 2 - London: Yields for U.S. Dollar Investors on 3-month Funds 3 - London, Frankfurt, Zurich: Yields on 3-month Bank Funds; Price of Gold in London 4 - Interest Arbitrage, New York/Canada 5 - Interest Arbitrage, New York/London 6 - Short-term Interest Rates 7 - Long-term Bond Yields 8 - Industrial Stock Indices 9 - Spot Exchange Rates - Major Currencies Against U.S. Dollar 10 - 3-month Forward Exchange Rates Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW YORK, L O N D O N , MONTREAL: YIELDS FOR DOLLAR U . S . DOLLAR DEPOSIT INVESTORS O N RATES: NEW 3 - M O N T H FUNDS YORK-LONDON EURO DOLLAR D E P O S I T U . S . C E R T I F I C A T E OF D E P O S I T | 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 Friday figures CO. PAPER RATES ( c o v e r e d ) : QUOTED IN NEW YORK CANADIAN F I N A N C E COMPANY U . K . HIRE P U R C H A S E I Mar. U . S . FINANCE C O M P A N Y jam. 1964 Sept. Die. Mar. 1965 Sept. Dee. Mar. In. 1961 Sept. Dae. L O N D O N : YIELDS FOR U . S . DOLLAR E U R O - D O L L A R D E P O S I T RATES INVESTORS ON 3-MONTH FUNDS 9 0 DAY 180 DAY - 3 0 HIRE P U R C H A S E Fridoy tigurei AND LOCAL D A Y - CALL AUTHORITY D E P O S I T RATES ( c o v e r e d ) Per cent per annum EURO DOLLAR DEPOSIT A 1 - > j HIRE PURCHASE 1 1 1 1 D I F F E R E N T I A L W 1 | 1 A | FAVOR HIRE P U R C H A S E 1 | 1 1 FAVOR EURO-DOLLAR V I 1 1 1 I t , , I , A i l l i l 1 i i I l i i 1 I I 1 i I LOCAL AUTHORITY DEPOSIT EURO-DOLLAR DEPOSIT r 1 DIFFERENTIAL FAVOR E U R O D O L L A R 1964 1965 1966 ILONDON, FRANKFURT, ZURICH: YIELDS O N FRANKFURT INTERBANK LOAN RATE V S . 3-MONTH LONDON BANK EURO FUNDS DOLLAR IN INTERBANK RATE ( C O V E R E D ) TERMS OF D M , LOAN RATE EURODOLLAR r r DIFFERENTIAL FAVOR EURODOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE ( C O V E R E D ) IN T E R M S OF SWISS FRANCS EURODOLLAR SWISS DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR EURO-DOLLAR n PRICE OF G O L D IN L O N D O N 35.2 35.0 1964 1965 1966 1 INTEREST A R B I T R A G E , UNITED S T A T E S / C A N A D A 3.MONTH T R E A S U R Y BILL R A T E S CAM. FIN. CO. IPAPER UNITED STATES >IU RATE D I F F E R E N T I A L A N D FORWARD CANADIAN DOHA* SPREAD IN FAVOR OF CtiWOA W 3.MONTH D RATE D I F F E R E N T I A L S (NET I N C E N T I V E S ) COVERED I PRIME FIHMtGE PAPER) TREASURY BILLS 1963 1964 M - A i A DISCOUNT INTEREST A R B I T R A G E , N E W 3-MONTH TREASURY BILL YORK/LONDON RATES LONDON U . K . LOCAL A U T H O R I T Y D E P O S I T S NEW YORK RATE DIFFERENTIAL FORWARD AND STERLING I 3-MONTH I I S P R E A D IN FAVOR OF LONDON PREMIUM DISCOUNT F O R W A R D RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN FAVOR OF LONDON IN FAVOR OF NEW YORK 1963 1964 1965 1966 SHORT-TERM INTEREST E U R O D O L L A R III RATES - LONDON 1 1 1 1 1 1 1 1 1 1 1 I I I 1 I I I I I I I I I 1 I I I 1 M 1962 5^ 3 month ireoiury bill roiei 1 1 1 1 1 1 1 1 1 1 1 I I I I I I I I I I I M 1 9 6 3 lor oil covnlriei i i c a p l Japan and Swiiierlaod ( 3 month deposit rale ) - j - 3 month rote lor U S dollar * deposits in London 1 9 6 4 1 1 1 1 1 1 1 1 1 I I I I I I I I I I I 1 I I I 1 I 1 I I I I 11 I I i 1 1 9 6 5 ( A 1 1 1 1 1 1 1 1 1 1 1 1 9 6 6 L O N G - T E R M B O N D YIELDS Weekly figures GERMANY U.S. CANADA NETHERLANDS U.S. SWITZERLAND 1962 1963 1964 1965 1966 INDUSTRIAL STOCK INDICES t Rolio scole 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 100 300 250 JAPAN 200 CANADA y V s V r s S U.S. 150 100 1963 * * Japan: mde« of 225 indi 1964 1965 1966 V° 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 GERMAN M A R K \ U.K. S T E R L I N G FRENCH FRANC BELGIAN FRANC DUTCH GUILDER ITALIAN LIRA CANADIAN DOLLAR J A P A N E S E YEN 1964 1965 1966 • : 3-MONTH Fridoy tigurei AGAINST F O R W A R D E X C H A N G E RATES U. S. D O L L A R S «n, p., PREMIUM^ G E R M A N MARK \ v r % \ Zvt ^' S W I S S FRANC POUND STERLING " DISCOUNTAG AINST P O U N D STERLING - LONDON i\\ S W I S S FRANC - G E R M A N MARK U. S . DOLLAR DISCOUNTA G A I N ST P O U N D STERLING - LONDON DUTCH GUILDER BELGIAN FRANC FRENCH FRANC M J DISCOUNT— S 1964 0 M J 1965 S D M I 1966 I 0 \1 January 19, 1966. H. 13 No. 231 II. Latest Figures Plotted in H. 13 Chart Series, 1966 (all figures per cent per annum) Chart 4 Chart 1 Upper panel (Friday, Euro-$ deposit 5,,25 U.S. certif. of deposit 4, 88 Lower panel (Friday, January 14 Treasury bills: ) Forward Canadian $ -0. 67 4.. 75 5 =14 5. 40 Net incentive (Canada +) -0 •77 Canadian finance paper 5., 75 Chart 5 Chart 2 ) January 14 (Friday, J anuarv 14 Treasury bills: Eufo-$ deposits: 90-day 180-day 5, 25 5. 31 Hire-purchase paper 5 31 (December 31) Local-authority deposit 5. 21 (January 7) Chart 3 Upper panel (Period: November 24-31 ) 6,56 5 ,41 Euro-$ deposit (average) Lover panel (Date: December 23 ) Zurich 3-mo. deposit 4- 00 Price of gold (Friday, 4.48 4 .58 Canada U.S. -0-10 U.S. Canada Hire-purchase paper, U.K. Call , 4,75 7-dav , 4,88 30-day 5, 25 ) Spread favor Canada Finance co. paper: (Friday, January 14 35- 125 .January 7 For description and sources of data see special annex to H. 13, Number 164, dated September 23, 1964 ) •?,J O 4 r, 5 9 U.K. U.S. Spread favor U.K. +0. 79 Forward pound -lo 03 Net incentive (U.K. +) - 0 , 25 Chart 6 (Friday, J a n u a r y 14 Treasury bills: U.S. 4 58 U.K. 5 36 ) 3 -88 (Dec. 4, 48 Germany Canada Euro-$ deposit (London) 5. 25 4. 00 Zurich 3-mo. deposit (Date: December 23 Japan composite rate (Date: October 29 ) 7. 660 ) Chart 7 U.S. Gov't. (Wed., J a n , 12) U.K. War Loan (Thurs., Jan. German Fed. (Fri., Jan. Swiss Confed. (Fri., Jan 7 7 Canadian Gov't. (Wed., Jan. Netherlands Gov't, perpetual (Fri., December 31 ) 4,,44 13) 6-57 ) 7,. 78 ) 3 .91 12 ) _5.. 46 5.,58 .
@FedFRASER