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DIVISION OF INTERNATIONAL FINANCE H. 13 BOARD OF GOVERNORS January 26, 1966. No. 232 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 - N e w Y o r k , London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds Chart 2 - London: Yields for U.S. Dollar Investors on 3-month Funds Chart 3 - London, Frankfurt, Zurich: Yields on 3-month Bank Funds; Price of Gold in London Chart 4 - Interest Arbitrage, New York/Canada Chart 5 - Interest Arbitrage, New York/London Chart 6 - Short-term Interest Rates Chart 7 - Long-term Bond Yields Chart 8 - Industrial Stock Indices Chart 9 - Spot Exchange Rates - Major Currencies Against U.S. Dollar Chart 10- 3-month Forward Exchange Rates Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW Y O R K , L O N D O N , M O N T R E A L : YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS D O L L A R DEPOSIT R A T E S : N E W Y O R K - L O N D O N E U R O DOLLAR D E P O S I T U.S. CERTIFICATE OF DEPOSIT | EURO DOLLAR OVER U.S. CERTIFICATE 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 I N N E W YORK Friday flgvrei CANADIAN FINANCE COMPANY U.K. HIRE P U R C H A S E U.S. FINANCE C O M P A N Y Mir. Jun. Sipt. 1884 Die. Mir. inn. 1865 Sift. Mir. in. 1866 lift. in. L O N D O N : YIELDS FOR U . S . DOLLAR I N V E S T O R S O N 3 - M O N T H FUNDS EURO-DOLLAR DEPOSIT RATES 90 DAY 180 DAY -30 D A Y - c m HIRE PURCHASE A N D LOCAL AUTHORITY DEPOSIT RATES (, Friday figures EURO-DOLLAR DEPOSIT HIRE PURCHASE r DIFFERENTIAL F A V O R HIRE P U R C H A S E FAVOR EURO-DOLLAR LOCAL AUTHORITY DEPOSIT EURO-DOLLAR DEPOSIT 1 DIFFERENTIAL FAVOR LOCAL AUTHORITY FAVOR E U R O D O L L A R 1964 1965 1966 X L O N D O N , FRANKFURT, ZURICH: YIELDS O N 3 - M O N T H BANK FUNDS FRANKFURT INTERBANK LOAN RATE V S . L O N D O N E U R O - D O L L A R RATE ( C O V E R E D ) I N TERMS OF D M _ INTERBANK LOAN RATE EURODOLLAR r DIFFERENTIAL FAVOR EURODOLLAR ZURICH DEPOSIT RATE V S . L O N D O N E U R O D O L L A R RATE ( C O V E R E D ) IN TERMS OF SWISS FRANCS EURODOLLAR SWISS DEPOSIT RATE r DIFFERENTIAL FAVOR ZURICH FAVOR E U R O D O L L A R E PRICE O F G O L D I N L O N D O N us 35.2 35.0 1964 1965 1966 INTEREST A R B I T R A G E , U N I T E D S T A T E S / C A N A D A 3 - M O N T H TREASURY BILL RATES C A N . F I N . CO. |PAPER CANADA UNITED STATES BILL RATE D I F F E R E N T I A L A N D F O R W A R D C A N A D I A N D O L L A R S P R E A D I N FAVOR OF C A N A D A PREMIUM DISCOUNT I V/""/ FORWARD RATE 3-MONTH C O V E R E 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 } FAVOR CANADA P R I M E F I N A N C E PAPER F A V O R U.S. FAVOR CANADA ~ TREASURY BILLS F A V O R U.S. 1963 1964 1965 1966 INTEREST A R B I T R A G E , N E W Y O R K / L O N D O N Friday ligur ei P< 3 - M O N T H TREASURY BILL RATES 6 LONDON U.K. L O C A L A U T H O R I T Y D E P O S I T S NEW YORK 4 2 RATE D I F F E R E N T I A L A N D FORWARD STERLING I 3-MONTH I I 2 S P R E A D IN F A V O R OF L O N D O N PREMIUM + 0 DISCOUNT F O R W A R D RATE 2 RATE D I F F E R E N T I A L W I T H F O R W A R D E X C H A N G E COVER (NET I N C E N T I V E ) 2 IN F A V O R OF L O N D O N 0 IN F A V O R OF N E W Y O R K 1963 1964 1 1965 1966 S H O R T - T E R M INTEREST RATES * U.K. E U R O - D O L L A R - LONDON U.S. GERMANY JAPAN U.S. CANADA — SWITZERLAND 1963 1962 % 3 month treasury bill ralei lor oil counlriel eicepf Jopon and Switzerland ( 3-month deposit rate ) —p 3-month role for U S dollar deposits in London 1964 1965 ( Average rale en bank loam and diicounli \ 1966 L O N G - T E R M B O N D YIELDS & Weekly ligurei GERMANY U.S. T CANADA | NETHERLANDS j SWITZERLAND 1962 1963 1965 1966 INDUSTRIAL STOCK INDICES l o l i o icol* 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 100 300 250 JAPAN 200 CANADA U.S. 150 1963 * 1964 Swi" Bonk Corporolion indutlriol slock index Jopan: index of 225 industrial ond other slocks traded on the Tokyo exchange. 1965 S 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 1.6 SWISS FRANC GERMAN MARK \ U.K. STERLING BELGIAN F R A N C FRENCH FRANC 7^x7 D U T C H GUILDER CANADIAN DOLLAR ITALIAN LIRA — 1 y v JAPANESE YEN 1.2 S M 1964 D M J 1965 S 0 M 1 1966 S 3 - M O N T H F O R W A R D E X C H A N G E RATES Fridoy figures A G A I N S T U. S. D O L L A R S PREMIUM GERMAN MARK SWISS FRANC POUND STERLING " DISCOUNTA G A I N S T P O U N D STERLING - L O N D O N PREMIUM* |\\ S W I S S FRANC — G E R M A N MARK U. S. D O L L A R — v^Y A G A I N S T POUND STERLING - L O N D O N DUTCH GUILDER BELGIANFRANC FRENCH FRANC — M r DISCOUNT— —L~ S l@4 D M J 1965 S D M J 1966 S 0 H * NO. . HI- Latest Figures Plotted in H. 13 Chart Series, 1966 (all figures per cent per annum) Chart 1 Upper panel (Wednesday, Jan. 19 January 26, Chart 4 ) Euro-$ deposit 5.25 (Friday, Jan. 21 Treasury bills: ) Canada 4.54 4.56 U.S. U.S. certif. of deposit Lower panel (Friday, 4,95 Jan. 21 Spread favor Canada -0.02 Forward Canadian $ -0. 74 4.88 Net incentive (Canada + ) -0. 76 5.07 5.49 Canadian finance paper ) Finance co. paper: U.S. Canada Hire-purchase paper, U.K. Chart 2 (Friday, Jan. 21 _) Euto-$ deposits: Call t4.75 7-day ,4.88 30-day 5.25 5. 69 Chart 5 (Friday, Jan. 21 Treasury bills: 90-day 180-day 5,25 5.38 Hire-purchase paper (Dec. 31) Local-authority deposit (Jan. 7 ) Chart 3 Upper panel (Period: Dec. 24-31 ) Interbank loan (mid point) 6.25 Eufo-$ deposit 5.40 ) U.K. U.S. 5. 36 4. 56 Spread favor U.K. -HI. 80 Forward pound -0.95 Net incentive (U.K. + ) -0. 1 5 5.31 Chart 6 (Friday, (average) Tfln ?! Treasury bills: U.S. 4„ .5$ U.K. 5.36 ) Germany Canada 4.00 (Jan. 4. 54 Euro-$ deposit (London) Lower panel (Date: Dec. 16-23 ) Zufich 3-mo. deposit Price of gold (Friday, Jan. 4,00 7 '15.125 ) 600 ) ) 7. A AO Chart 7 U.S. Gov't. For description and sources of data see special annex to H. 13, Number 164, dated September 23, 1964 5. 2 5 Zurich 3-mo. deposit (Date: Japan composite rate (Date: />«-. (Wed., T ^n 1Q ) U.K. War Loan (Thurs., Jar, German Fed. (Fri., Jan. Swiss Confed. (Fri., 7 A /, 7 13) 6 s7 ) 7 7R Tan. 1A ) Canadian Gov't. (Wed., j a n . 19) Netherlands Gov't, perpetual 37, (Fri., Jan. 14 ) (m„ 3 Jan. 7 ) 1 Q1 5 66 5. 6Q 5.74
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