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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE U.S. • E B C L Y i e M E S O F CHARTS TABLE OF COWTEHTS PART I. EXCHANGE RATES AMD GOLD PRICES Chart 1A and 6 - Spot Exchange Rales, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3A and 8 - 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 Rates Chart 6A and 8 - London: Euro-S Deposit Rates Chart 7A and 8 - Mew York - London: Yields on U S. Dollar Funds Chart 8A and 8 - London: Coveted Yields on U.S. Dollar Funds Chart 9A and 6 - Interest Arbitrage: United States-United Kingdom Chart 10A and 8 - Interest Arbitrage: U.S.-Germany and U S-Switzertand Chart 11 - Interest Arbitrage: United Stiles-Canada Chart 12A and 8 - Selected Short-term Interest Rates PART III. LOMG-TERM INTEREST RATES AMD STOCK MIOICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Slodr Indices PART IV. SELECTED CENTRAL BAMK DISCOUNT RATES AMD LATEST FIGURES PLOTTED OM THE CHARTS MOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, whk* was published under that title thiou^i Dec enter 31,1%8. The changes in the format and order of the charts are nrptained in the Supplement to the series, which accompanied issue dated January 1,1%9. All series and their sources are hilly described in a 1i#plpmmt dated January 1,1172. SPOT EXCHANGE RATES MAJOR CURRENCIES AGAINST U.S. DOLLAR average? Per cent GERMAN MARK I.K. POUND SWISS FRANC DUTCH GUILDER FRENCH FRANC JAPANESE YEN D 1972 J 1973 s D M Chart 18 SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US- DOLLAR UAUMI URA Ratio scale. US cents Ratio scale, U S cent UJC. POUND 260 240 I I I I I I I I I I I Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR May 11, 1971 - Dec 17, 1971 flar Weekly averages cent JAPAN US. MAY JUNE JULY SEPT. AUG 1971 * Financial franc OCT. NOV. DEC. Chart I D SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST UJ. OOUAR 11. 1 9 7 1 - Dec 17 1971 U JL ITALY UJL ITALY SWITZ. MAY JULY AUG. OCT 1971 • f o r clarity the vertical scale is double that mad in 1C MOV. DEC Chart 2A 3 MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Per cent per ani Weekly averages ! M M M ! 4 CANADIAN DOLLAR + 0 U K. POUND 4 8 PREMIUM - GERMAN MARK 4 + 0 4 DUTCH GUILDER 4 + 0 4 1970 1971 Canadian Dollar Rale not supported by Bank o- Canaoa 1972 1973 4 Chart 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Per cent pe< annum Weekly averages 1 1 | ! 1 | I I | ! ! 12 I PREMIUM • FflEfltCMHMNC - 1 1 OtSCOOttT MttMlUM • SWCf HMMC H I 1 1 1 1 1 I I i t 1 ! 1970 i ! « i i : I 1 1 1 i j 1971 s i 1 1 1 i V / — WSCOUMT - j i I i i j 1972 ; , s 1 i ! ! « 1 I I J 1973 I s i ! ! Chart 3A 3 MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC. POUND Friday figures Per cent per annum PRE*HUM • - - / GERMAN MARK 1 - | US. DOLLAR j - 1 1 ! DISCOUNT - j i i 1 i ! I I ! I 1 i I I i ; 1 1 i M j S . 1970 D M J 1971 S D H J S 1972 O i I i I i i J i i i S 1*73 i i O i i \Q Chart 3B 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UK. POUND Friday figures Fee cent per annum PRE* uuw + - - SWSFMI C 1 ^ / \ j V h e * c h FIUMC 1 ! DISCOUNT I 1 1 M ! 1 1 ! J i S I ! D iS70 • ; ; H 1 i • ; ! i ! I : 1 i 1 i 1 J S M71 O I I i J W72 I S i M 1 1 1 1 1 1 D M J M S 1979 1 1 1 , 0 w Chart 4 GOLD PRICE IN LONDON. 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per fine ounce 80 50 M J s 0 1970 M J 1971 S 0 M J 1972 S 0 M J 1973 s o CALL MONEY RATES DOLLAR FUNDS Per cent per annum Weekly averages 14 CALL EURO-DOLLAR DEPOSITS OVERNIGHT EURO-DOLLAR DEPOSITS FEDERAL FUNDS DIFFERENTIAL EURO-DOLLAR OVER FEDERAL FUNDS FAVOR EURO-DOLLAR FAVOR FEDERAL FUNDS l I I I I EURO-CURRENCIES Per cent per Weekly averages EURO-SWISS FRANC Chc-^gec f r L f CALL I ! I I I 1 UVLRNiGH. Luro G< Chart SB CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum I V y^pljirj7 [ 1 1 FRANCE. / (WU 7 ,/1 / 1"lift Vf i , 1i i i I::1i11 1 I • 1 M 1 ; IETHEIIUUw o s L J M i l l i ; ' i 1 V l / ^ i l : i; i, . . i 1 : 1 1 i - JAPAN CANADA - 1 I : , 1 1 ; i I , 1 *ntorii L i i f J f i ; I i i 1 , ! 1 i i | : m 1 i i1 . I 1970 fianu 1971 1972 Day to day Money. Netherlands, Call Money, weekly average, Japan, Unconditional Money . Car,;..', Day tc day Loans *eeHy average. Germany, Call Money, U # , 2-dav Local Authority Deposit? 1973 Chart 6A Friday figures May 1 2 / 7 1 - c h a n g e d to Overnight Euro Dollar Deposits * July 1 - c h a n g e d to 7 Day Eure Dollar si LONDON: EURO DOLLAR DEPOSIT RATES Per cent per annum Friday figures ! " : — I 3-MONTH 1 1 1 1 ! 1 i 1 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 I i 1 I i 1 I l — 1 I I i i 1 l 1 1 i i 1 i i - - 6-MONTH - ^ A / | _/>aA^s/z .A 1 1 1 1 1 1 1 1 1 1 1 M 1970 1 1 1 1 I I 1971 1 M i i i i i 1 i 1972 i 1 i i J. I 1 i J i i 1973 i i l J Chart 7 ' NEW YORK-LONDON: YIELDS ON U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Per cent per annum Wednesday figures 12 - \ 10 Vv vy , u A M s - ^-DOLLAR DEPOSIT - L \ y \ i i i - US. CERTFIDATE 0F DEPOSIT i t ( i i 1 i i i i 1 i i 1 i i I i i 1 1i L i i 1 I 1 f 1 I i 1 l l i 1 1 1 1 1 FAVOR EURO DOLLAR DIFFERENTIAL Ah - haJ^ - V A V EURODOLLLAR OVER US. CERTIFK:ATE OF DEPOSIT ' M I : I : 1 • J S D 1970 < M I . I J S 1971 D M ; 1 I ! 1 i I 1 I 1 ! 11 1 1 1 111 M J S D * J S O 1972 1973 . Chart 78 N|W_YORK-LOIiDON: COST OF US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Per cent per annum Wednesday figures \S \ f\ A ™ W j rv - ML EUKMXK1A* BEPi - J tv/x, V V U 5 CERIH KATE Of DEPOSIT / EtNKMX)UAII D6 ADJUSTED* M 1 l 1 l 1 t 1 l i 1 l 111111111 I I 1 I i 1 I I 1 I r i 11 II 1 1 1 1 M - Y* Wu'i W [J\jV A /i V S L A X / W EURO-DOLLAR 0 US. CERTFICA1•E OF DEPOSIT ADJUSTED* , 1 1 1 1 1 1 M M J i .i S i. i 0 i 1 i M 1970 i X J i i \ S 1971 * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * * Adjusted for 20% Marginal Reserve Requirement 1 i i l 0 l i M 1 l i l J 1972 l t S l l 1 1 D M 1 1 1 i i J 1973 1 S 1 1 1 0 \ 6 ' Chart 8A LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE AND EURO DOLLAR RATES Friday figures Per cent per annum I \ EURO DOLLAR DEPOSIT COVERED STERUNG CD S T T FAVOR STERLING CD's m FAVOR EURO DOLLAR DIFFERENTIAL S 1969 1970 * K i r f . Purchase te*nperari'y suspenot' b i t ' i m p Ceriii, ' L'.:'. ' C M D 1971 s M 1972 D Chart 8 8 LONDON: COVERED YIELDS ON II.S. DOilAR FUNDS LOCAL AUTHORITY AND EURO-DOLLAR RAILS Friday figures FAKK LOCAL MKMOffTV i#72 <2> INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum 12 3-MONTH TREASURY BILL RATES UJC. LOCAL AUTHORITY UNCOVERED * Plotted for comparison purposes Chert 9 6 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I OtSCOOWT fAVOK LONDON FAVOR WE* YORK • J s 0 M mm J 1*70 $ f) m J JfJl s 0 M J 1972 S P 4 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS LONDON EURO DOLLAR RATE Wednesday rates *oowri ^ W T£«IMS OF DM FAVOR FfMMKFUirr s s 1969 Mo quotation 1970 0 M J 1971 S f> M J 1972 s 0 >3 3-MOWTM nmos mrtatsj n — m u c r amaooujm-smst ZUMCH DEPOSIT RATE VS LOUDON EUR040UAR RATE IMaiMlirfJtM TERMS Or SWISS FRANCS M i l l ! — Mo quotation 3-MOMTH INTEREST ARBfTRACE: UWTEO STATES - CAMAOA Friday iigytes I 1 1 1 i i ! BILL RATES ! !! i | I 1 I l I I 1 I BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR GROSS SPREAD IN f A W M OF CJtfMO* f~COVERED RATE DIFFERENTIALS FAVOft U S J-J-i 1 1 1 1 J 1-L L i J. I I ! 1 I I I I z Chart 12A SELECTED SHORT TERM INTEREST RATES" # 1968 1970 * 3 month treasury bill rates for all countries except JapaniAverage rate or ban* leans ar.t discounts) and Germanydnterbant Lean Fate) 1972 & Chart 128 SELECTED SHORT-TERM INTEREST RATES* Fee cent par anmwn i w l w * 3-month treasury till fate tor U S . Switzerland - 3 month deposit rate rale tor US dollar deposits HI London LONG TERM BOND YIELDS Weekly figures Per cent per annum NETHERLANDS CANADA u.s US SWITZERLAND 11 UM. GERMANY 10 Monthly figure; U.S. CORP. BONOS U.S. CORP. DM EURO-BONDS 1968 1969 New series for Switzerland sto'ts 8 2 68, U S * New Average yield ot all German PA 1970 1971 1972 Corp Dollar Euro Bonds and U S Corp DM Euro-Bonds starts 12-70. Bonds begins 1 7 69 4 CHART 14 1958-100 INDUSTRIAL STOCK INDEXES fiatio scale 290 UNITED STATES i i 1 iVv i i i i i 1 11 1 I 1 1 11 1 I l i 1 l I 1 I I 1 1 I 1 1! 1 1 1 1 1 1 II I SWITZERLAND r 160 V UNITED KINGDOM J i I 1 I I 1 I I 1 M 1 1 1 II i i 1 ! ! 1 i : 1 i i 1 i i 1 i i JAPAN/^l y 240 1 1i 11I 1 1 ] II / - MO \r GERMANY 240 V f CANADA i i 1 i i 1 i i 1 i i i 1969 i 1 i i 1 i i 1 i i I I 1 I 1970 I 1 l l 1 l l i 1971 * Japan mde* of 225 industrial and other stocks traded on Tokyo exchange * Japan mde* of all industrial and other stocks traded on the first section of the Tokyo Stock £*chaf*e i 1 i i 1 i 1972 i 1 i i J a n u a r y 2 4 , 1973 H. 13 No. 594 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rale In Effect Since E.E.C.: Belgium 5.0 France 7.50 Sov. 30, 1972 Germany 5.00 J a n 12, 1973 Italy 4.0 A p r i l 10, 1972 Dec. 21, 1972 4.5 • o r . 22, 1972 6.50 * o v . 2 , 1972 ' * n r . 3 0 . 1972 4.5 O c t . 14, 1972 Netherlands 4.0 November 3 , ' 7 2 3.0 S e p t . 8, 1972 **United Kingd » 8.75 J a n . 19, 1973 9.0 Dec. 22, 1972 S e p t . 15, 1972 3.0 Switzerland 3.75 J u l y 10,1072 Canada 4.75 O c t . 25, 1971 5.25 F e b . 24, 1971 Japan 4.25 June 24, 1972 4.75 A p r i l 29, 1971 United States 5.00 | J a n . 15, 1973 4.50 Dec. 13, 1971 * * E f f e c t i v e October 13, 1972, t h e Bank of England r e p l a c e d i t s t r a d i t i o n a l Bank Rate w i t h a f l u c t u a t i n g " m i n i s * l e n d i n g r a t e " baaed on a v e r a g e T r e a s u r y b i l l tender r a t e . J a n u a r y 19, 1 9 7 3 . , . 8 , 7 5 IV-2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. pound French franc Japanese yen Lower IB Uflper Lower 2A 26 Uflper Lower 3A 4 * *-fr German mark Swiss franc U .K. pound Dutch guilder Canadian dollar French franc Japanese yen Gold price, U.S. dollar per ounce Uflper Middle Lower 56 Jan, 19 Actual l a t e German mark U.S. dollar Swiss franc French franc 38 5A 8etgian franc Haiian lire Canadian dollar Gemanma* Dutch guilder Dale Upper Lower " M " " Rale 4-2,090 235,20 +0,438 +1.954 +1.129 -0,953 100,04 44,552 +0,527 •2,50 40,78 -3,52 +1.44 40,85 -1,43 M-A+5,95 " +3,03 +3,10 +1,95 « 44,45 Overnight Euro-S deposits Jam. 17 5,73 Federal Funds 5#S4 " Differential Euro-currencies: Euro Oil • 1,81 4,00 " Euro Swiss Fr. Japan, Unconditional Money Dec. 29 4,88 U.K., 2-day Local Aidfaor. Depsjltac. 29 Jaw, 5 Jam, U§ 7,94 7,81 Canada, Day-to-day Laaas Jam, 17 3,78 Jam, 11 7,00 France, Oay-lo-Oay Money Gemany, Call Money Jam. 1# 3.00 Metfierfands. Call Money Jam, 12 4,3# -o,u IV 3 Chart Panel 6A Series Euro-) 7-Day Rate Jan. 19 5.75 •« 6.19 " 6.25 Jan. 17 6.12 Euro ) 1-month Rate 66 Euro-S 3-montfi Rate Euro-S 6-month Rate 7A Rake Date Upper Euro-S 3-month Deposits U.S. Certificate of Deposits 7B Lower Differential Upper Euro-S 3-month Deposits S.7S -U) 17 « Lower U.S. Certificate of Deposits (Adj.) Differential: on Adj. Euro-S Deposits « +1.60 -0.07 5.91 5.94 5.25 on Unadj. Euro-S Deposits 8A 8B Upper Euro-S 3-month Deposits M Dec. 29 Jan. 5 Hire Purchase Deposits (covered) Dec. 29 Lower Differential Upper Euro-S 3-month Deposits Dec. 29 Local Authority Deposits (covered) Lower Jan. 5 IW OQ Differential Local Authority Deposit (uncovered) Upper -0.66 5.96 5 r 19 Jan. 19 5.42 Jan. 12 9.00r U.K. Treasury Bill rate 96 7.65 6-05 -0.72 U.S. Treasury Bill rate 9A 6.12 „ „ Euro-S 3-month Deposits (Adj.) Spread (+= favor London) 8-08 /Mr 1? +2.66 3-month Forward Pound Lower Met Incentive favor London) " -1.00 1 IV - 4 #a* Chart Panel Series Dale 10A Uflpef £imd-S Departs (cornered) Jan, 17 Lower DMWWW C w i fatfaifea* Lmb rale 108 Uflper Lower 11 Upper 7,88 44,26 Eaw4 A#ew#f (cowered) « 5.38 Swiss Deposit rale Jan, 17 DHMrtM Jan, 10 Canadw Finance Paper Jan- W U.S. Treasury Bill rale M 5-31 LfP 3.69 U.S. Prime Finance MPCr (not platted) 12A 4.00p -1.38 * Canadian Tummy Sill ale 5.50 gill rale dtffowntial M i i 1 Second 3.62 *1-73 U Thifd Met incentive on bills „ 4*.*6 Bottoe Met incentive on Finance fapar M 40-73 Jan. 1® 8-08 Upper U.K. Treasury Bill rale -0-77 U.S. Treasury Bill rale Geman Interbank Loan rSe Lower Canadian Treasury Bill rale 120 Jam 10 Japanese Average rale «.« 6.7*1 Jam. 19 3.6# U.S. Treasury fill ale M 5.42 Ewo-S DaposHs W 6.# Swo^dhPpfialt «.S. T w w r s m r a i e . 4^# - 5,4* IV-5 Chart Panel Series 13 Upper Netfierlands Jam. 12 7.08 Canada Dec. 27 6.71 United Stales Dec. 27 Dec. 29 Jan. 5 5.47 5.32 5.25 Dec. 29 8.50 Dale Switzerland Germany Middle United Kingdom Lower 7.68 November 6.94 December Jan. 12 Jan. 19 Jan. 5 Jan. 15 7.08 455.5 459.1 United Kingdom Canada ** Japan United States Serles ii November f United Stales Lower 9.76 U.S. Con.. ON Euro-bonds * Germany Middle S p Switzerland Upper Jan. U.S. Cotp. Dollar Euro-toond^erlfis U.S. Corp. Aaa bonds 14 Rale Jan. 19 269.65 M Jan. 11 Jan. 18 273.75 300.70 300.69 Jan. 15 924.46 Jan. 19 269.65 * 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 Stock Exchange.