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DIVISION OF I N T E R N A T I O N A L M N f r N C *
/
B O A WD O F « O V E R
OF T H E
7
H. 13
No. 334
'
-
/
/
I.
Ten Charts on Financial Markets Abroad
Latest Figures Plotted in H.13 Chart Series, 1968
Ten Charts on Financial
Markets Abroad
%
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
1 - New York, London, Montreal: Yields for
U.S. Dollar Investors on 3-month Funds
2 - London: Yields for U.S. Dollar Investors
on 3-month Funds
3 - Interest Arbitrage: Frankfurt/London,
Zurich/London
4 - Interest Arbitrage: New York/Canada
5 - Interest Arbitrage: New York/London
6 - Short-term Interest Rates
7 - Long-term Bond Yields
8 - Spot Exchange R a t e s — M a j o r Currencies
Against U.S. Dollar
9 - 3-mor^:h Forward Exchange Rates
10 - Industrial Stock Indices
Europe and British Commonwealth Section.
NOT FOR PUBLICATION
DECONTROLLED AFTER SIX MONTHS
| _
January 24, 1968.
£APITAL MARKET DEVELOPMENTS ABROAD
I.
II.
O
f e d e r a l reserve system
NEW Y O R K , L O N D O N , MONTREAL:
Y I E L D S FOR U . S . D O L L A R I N V E S T O R S O N 3 - M O N T H F U N D S
DOLLAR DEPOSIT RATES: NEW Y O R K - L O N D O N
Wedneidoy figures
Per cent per
EURO-DOLLAR DEPOSIT
U . S . C E R T I F I C A T E OF D E P O S I T
E U R O - D O L L A R OVER U . S . C E R T I F I C A T E OF DEPOSIT
F I N A N C E C O . PAPER RATES ( c o v e r e d ) : Q U O T E D IN N E W Y O R K
Friday Figures
U . K . HIRE P U R C H A S E
CANADIAN FINANCE
/T
^COMPANY
! U.S. F I N A N C E C O M P A N Y
IMr.
Jun.
Sept.
Dec.
Mar.
1965
Jun.
1966
Sept.
Dec.
Mar.
Jun.
1967
Sept.
Dec.
Mar.
Jun.
1968
Sept.
Dec.
3
LONDON:
YIELDS
EURO-DOLLAR
Friday figures
FOR
DEPOSIT
U.S. DOLLAR
INVESTORS ON
3-MONTH
FUNDS
RATES
3 0 DAY
9 0 DAY
180 DAY
CALL
HIRE P U R C H A S E
AND
LOCAL
AUTHORITY
DEPOSIT
RATES
(covered)
HIRE PURCHASE
EURO-DOLLAR DEPOSIT
FAVOR HIRE PURCHASE
FAVOR EURODOLLAR
EURO-DOLLAR DEPOSIT]
LOCAL AUTHORITY DEPOSIT
V
DIFFERENTIAL
FAVOR LOCAL AUTHORITY
FAVOR EURO-DOLLAR
1965
1966
1967
1968
I
INTEREST ARBITRAGE:
FRANKFURT/LONDON,
FRANKFURT INTERBANK
LOAN
RATE V S . L O N D O N
ZURICH/LONDON
E U R O D O L L A R RATE ( C O V E R E D )
I N TERMS O F D M
INTERBANK
N
LOAN RATE
j
EURO-DOLLAR
iAVOR F R A N K F U R T
DIFFERENTIAL
FAVOR E U R O - D O L L A R
ZURICH
D E P O S I T RATE
VS.
LONDON
EURO
DOLLAR
RATE
(COVERED)
I N TERMS OF S W I S S F R A N C S
EURO DOLLAR
SWISS
DEPOSIT
RATE
F A V O R ZURICH
DIFFERENTIAL
FAVOR E U R O - D O L L A R
E
PRICE
OF
GOLD
IN
LONDON
1965
1966
1967
1968
1 .
'
INTERS! ARBITRAGE,
Friday figures
3-MONTH
TREASURY
UNITED
BILL
STATES / C A N A D A
'
^
Per cent per annum
RATES'
CAN.
F I N . CO. P A P E R
UNITED
STATES
'V
CANADAV
BILL
RATE
DIFFERENTIAL
AND
FORWARD
SPREAD
CANADIAN
2
DOLLAR
I N F A V O R OF C A N A D A
FORWARD RATE
DISCOUNT
3-MONTH
COVERED
RATE
DIFFERENTIALS
T
(NET INCENTIVES)
TREASURY
FAVOR CANADA
BILLS
PRIME FINANCE PAPER
FAVOR U.S.
FAVOR CANADA
1965
1966
1967
1968
INTEREST ARBITRAGE, N E W
3-MONTH
YORK/LONDON
TREASURY BILL R A T E S
1
U.K. LOCAL AUTHORITY DEPOSITS
LONDON
NEW YORK
RATE D I F F E R E N T I A L
ANpD- 3 - M O N T H
FORWARD
STERLING
S P R E A D I N F A V O R OF L O N D O N
FORWARD RATE
RATE D I F F E R E N T I A L
WITH
FORWARD
EXCHANGE
COVER
DISCOUNT
(NET
I N F A V O R OF L O N D O N
INCENTIVE)
/A
I N F A V O R OF N E W Y O R K
1965
1966
1967
1968
n
S H O R T - T E R M INTEREST RATES *
Per cent per onnum
EURO-DOLLAR - LONDON <
SWITZERLAND
1963
1964
1965
3-month treasury bill rote, for oil countne, except Jopon (Average rate on bonk loon, and di.coun..)
Sw.tzerland (3-month deposit rote) and Germany (interbank loon Rote)
"("3 month row for U S dollar deposits in London
1966
'
.
L O N G - T E R M B O N D YIELDS
NETHERLANDS
CANADA
SWITZERLAND
GERMANY
EURO-DOLLAR BONDS
US
1963
1964
1965
1966
1967
c
i
P O T E X C H A N G E RATES - M A J O R C U R R E N C I E S A G A I N S T U . S . D O L L A R
SWISS FRANC
r
GERMAN MARK
4
U.K. STERLING
BELGIAN FRANC
DUTCH GUILDER
|
FRENCH FRANC
CANADIAN DOLLAR
I T A i l A N LIRA
V\
x/
JAPANESE YEN
M
*
S
D
M
Devaluation of ihe pound sterling - from $2 80 to $2 40
J
S
D
M
J
S
0
M
s
D
\0
3-MONTH
AGAINST
FORWARD
E X C H A N G E RATES
U.S. D O L L A R S — N E W
•I/X
YORK
PREMIUM
SWISS FRANC
GERMAN MARK
POUND STERLING
DISCOUNT-
X FRENCH FRANC
DUTCH GUILDER
CANADIAN DOLLAR
DISCOUNT-
AG A I N ST POUND
STERLING — L O N D O N
PREMIUM
SWISS FRANC
GERMAN MARK
U.S. DOLLAR
DISCOUNT-
1965
1966
1967
\!
.INDUSTRIAL
STOCK
INDICES
1958:100
Ratio scale
360
320
.280
SWITZERLAND
240
U.K.
200
U.S.
GERMANY
160
120
360
320
280
JAPAN
240
200
CANADA
160
120
1964
1965
Swiss Bank Corporation industrial stock index
Japan: index of 2 2 5 industrial and other stocks traded on the Tokyo exchange
1966
1967
!?•
H. 13 ,
No. 334
January 24, 1968.
II. Latest Figures Plotted in H. 13 Chart Series, 19
(all figures per cent per annum)
Chart 1
(Wednesday,
Upper Panel
Euro-$ deposit
. 5.81
U.S. certif. of deposit
Lower Panel
Chart 5
(Friday, Jan. 19
Jan. 17
Treasury bills:
5.45
(Friday,
Jan. 19
5.50
Finance co. paper:
U.S.
Canada
Hire-purchase paper, U.K.
T7TT
5.81
6. 12
90-day
180-day
5.37
Chart 3
(Period:
Jan. 16 - 23)
-2.72
Dec. 15, 1967
4 . 00
35 . 176
)
Chart 4
(Friday, Jan. 19
Treasury bills:
)
.5., 66
5. 02
Canada
<I.S.
Spread favor Canada
+
Forward Canadian $
-1, 74
Net incentive (Canada +)
-1. 10
Canadian finance paper
64
6. 38
5.02
7.34
3.25
Zurich 3-month deposit
(Date: Dec. 15. 1967 )
Japan composite rate
(Date: Oct. 27, 1967 )
4.00
7.32
Chart 7
3.43
Zurich 3-month deposit
Price of gold
(Friday,
Jan. 12
.40
U.S.
U.K.
Canada
3.25
Interbank' loan (mid-point)
(Jan. 8-15
Euro-$ deposit (average)
(Date.:
Forward pound
Interbank loan rate (German)
(Jan. 8-15)
Euro-$ deposit (London)
5.55
|
Local-authority deposit
(Jan. 12) >
Lower Panel
+2.32
Treasury bills:
Hire-purchase paper (Jan. 12)
Upper Panel
Spread favor U.K.
Chart 6
(Friday,
Jan. 19 )
Euro-$ deposits:
4.75
5.25
7.34
5. 02
Net incentive (U.K. +)
T752T
Chart 2
(Friday, Jan. 19)
Call
30-day*
)
U.K.
U.S.
U.S. Gov't. (Wed. ,
Jan
-
17
)
5.06
)
German Fed. (Fri.,
Jan. 12
)
6,.61
)
4. 75
,, Jan. 17 )
6. 53
Swiss Confed. (Fri., Jan. 5
Netherlands Gov't, perpetual 3%
(Friday,
Jan. -5
)
6.09
Euro- $ bonds (Fri.,
7.52
Jan. 19
)
For descriptions and sources of data, see
special supplement to H.13, Number 239,
March 16, 1966.
@FedFRASER