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D I V I S I O N OF I N T E R N A T I O N A L F I N A N C E * O A » D OF • O V E U N O * * F E D E R A L R E S E R V E SYSTEM y January 3, 1 9 6 8 . No. 331 CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts Latest on F i n a n c i a l M a r k e t s A b r o a d Figure's P l o t t e d in R. 13 Chart Series, 1967 /. * I. T e n C h a r t s on F i n a n c i a l M a r k e t s A b r o a d Chart Chart Chart _Chart Chart 1 - N e w Yi rk, L o n d o n , 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 - m o n t h F u n d s 2 - Lcndoi: Y i e l d s for U.S. D o l l a r I n v e s t o r s on 3 - m o n t h F u n d s 3 - Interest Arbitrage: Frankfurt/London, & Zurich/London - Interest Arbitrage: New York/Canada Chart 5 - Interest A r b i t r a g e : New York/London 6 - S h o r t - t e r m Interest R a t e " Chart Chart 7 - L o n g - v e r m Bond Y i e l d s 8 - Spot L x c h a n g e R a t e s - - M a j o r C u r r e n c i e s Aga. ist U. S. D o l l a r Chart Chart Note: 9 - 3-month Forward Exchange Rates 10 - Indus' rial S t o c k I n d i c e s This report period Europe and British Commonwealth i n c l u d e s d a t a for e n d i n g D e c e m b e r 29, J-ie t w o - w e e k 1967. Se:tion. NOT FOR PUBLICATION D E C O N T R O L L E D AFTER SIX M O U T H S NEW Y O R K , L O N D O N , MONTREAL: YIELDS FOR U . S . DOLLAR 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 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 D E P O S I T FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK U.K. HIRE PURCHASE CANADIAN FINANCE / COMPANY U.S. FMAWCE C S W P A N Y let. lee. 1 M Iipi * Bee. I«. lie. 1MI Sept. tec. Her lee. 1H7 Sept. iec. Mar. ]». Sept. 1161 Dee. L O N D O N : YIELDS EURO-DOLLAR Friday figures FOR U.S. DEPOSIT DOLLAR INVESTORS PURCHASE AND 3 - M O N T H FUNDS PER CENT PER A N N U M 30 HIRE O N RATES LOCAL AUTHORITY DAY DEPOSIT RATES HIRE EURO-DOLLAR (covered) PURCHASE DEPOSIT FAVOR HIRE DIFFERENTIAL EURO-DOLLAR 4 LOCAL DIFFERENTIAL AUTHORITY PURCHASE FAVOR EURO-DOLLAR FAVOR LOCAL AUTHORITY DEPOSIT DEPOSIT FAVOR E U R O - D O L L A R 1965 I INTEREST FRANKFURT ARBITRAGE: INTERBANK F R A N K F U R T / L O N D O N , LOAN RATE VS LONDON Z U R I C H / L O N D O N EURO-DOLLAR RATE (COVERED) I INTERBANK LOAN IN TERMS OF DM | RATE EURO-DOLLAR 2 D I F F E R E N T I A L " j FAVOR FAVOR ZURICH DEPOSIT RATE VS. L O N D O N EU R6 - D O LLA R \ A TE S W I S S DEPOSIT DIFFF R E N T I A L n RATE EURODOLLAR ( C O V Eg^CUT E R M \ O F EURO-DOLLAR FRANKFURT SWISS FRANCS z 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. P A P E R CANADA UNITED STATES 3 BILL RATE DIFFERENTIAL AND FORWARD C A N A D I A N DOLLAR PREMIUM S P R E A D I N F A V O R OF C A N A D A FORWARD RATE 3 - M O N T H COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CANADA P R I M E FINANCE PAPER FAVOR U S TREASURY BILLS tAVOi 1115 1967 INTEREST A R B I T R A G E , N E W Y O R K / L O N D O N 3 - M O N T H TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON I NEW YORK V RATE DIFFERENTIAL AND 3-MCNTH 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 DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET IN FAVOR OF L O N D O N INCENTIVE), Jl A ! I N F A V O R OF N E W Y O R K 1919 1966 1967 1968 S H O R T - T E R M INTEREST RATES # E U R O - D O L L A R - LONDON t SWITZERLAND GERMANY CANADA I L O N G - T E R M B O N D YIELDS NETHERLANDS SWITZERLAND EURO D O L L A R B O N D S 1963 1964 1985 1966 1967 SPOT E X C H A N G E RATES - M A J O R CURRENCIES A G A I N S T U . S . D O L L A R SWISS FRANC GERMAN MARK U.K. STERLING BELGIAN FRANC DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR JAPANESE YEN 10 3 - M O N T H F O R W A R D E X C H A N G E RATES AGAINST U.S DOLLARS — N E W YORK PREMIUM SWISS FRANC GERMAN MARK POUND STERLING DISCOUNT- PREMIUM F R E N C H FRANC DUTCH GUILDER C A N A D I A N DOLLAR DISCOUNT AGAINST POUND STERLING — L O N D O N PREMIUM- ' S W I S S FRANC GERMAN MARK U.S. DOLLAR Bisceuir 1965 1966 1967 I N D U S T R I A L STOCK I N D I C E S 360 320 280 SWITZERLAND 240 200 GERMANY JAPAN CANADA January 3, 1 9 6 8 H. 13 No.331, p . l II. Latest F i g u r e s P l o t t e d in H . 1 3 C h a r t S e r i e s , (all f i g u r e s p e r cent per a n n u m ) 1 Upper Chart 1 (Wednesday, Panel Dec. 20 Euro-$ deposit 6.56 U.S. 5.64 1967 Chart 5 (Friday, Dec. ) Treasury bills: 22) 7.26 4.92 U.K. U.S. certif. of d e p o s i t Lower Panel (Friday, Doc. 22 ) Spread favor Forward Finance co. p a p e r : U.S. +2.34 -4. 67 5.50 5.95 3.14 Canada p a p e r , U.K. Hire-purchase U.K. sound Net incentive (U.K. +) -2.33 Chart Chart 2 . (Friday, Dec. 22 (Friday, ) Treasury bills: Euro-$ deposits: Call 30-day 6. 75 6.56 Hire-purchase (Dec. 15) 90-day 180-day paper Local-authority (Dec. 15) Chart (Period: Upper Panel Interbank loan Euro-$ deposit Lower Panel Zurich deposit Dec. (average) . Nov. Euro-$ deposit ) U.S. G o v ' t . (Wed., U.K. W a r L o a n G e r m a n Fed. Spread Forward U.S. favor C a n a d a Canadian $ 22 ) (Thurs., incentive (Canadp +) Canadian finance paper (Dec. 15) 4.00 7.29 7 20 Dec. Dec. (Fri., Dec. (Wed., N e t h e r l a n d s Gov't, 5.84 4.92 + .92 - .48 Euro- $ b o n d s ) 5.24 21 ) 7.15 22 ) 6. 6 4 7 ) 4. 73 20) 6.54 - . 44 6.38 Dec. Dec. perpetual 8 (Fri., 37= ) Dec. 6.09 22 ) 7.44 F o r d e s c r i p t i o n s and s o u r c e s of d a t a , see s p e c i a l s u p p l e m e n t to H . 1 3 , N u m b e r 239, March Net ) ) Dec. (Fri., Swiss Confed. (Friday, Canada b.44 3-month deposit (Date: N o v . 15 Japan composite rate (Date: Sept. 29 C a n a d i a n Gov't-. bills: . (London) ) Chart 4 (Friday, Dec. Treasury 4.11 (German) Chart ) 35.198 15 Zurich 4.27 15 4.00 P r i c e o f gold Dec. 7.26 5.84 4. 12 3-month deposit (Friday, 4,92 3.05 16-23 (mid-point) (Date: U.S. Interbank Igan rate 3 22 ) U.K. Canada 6.38 6.44 2.95 6 Dec. 16, 1966. January H. 13 No. 331, p. 2 II. L a t e s t F i g u r e s P l o t t e d in H . 1 3 C h a r t S e r i e s , (all f i g u r e s per cent per a n n u m ) Chart 1 (Wednesday, Upper Panel 27 Euro-$ deposit U.S. certif. Lover Panel 6.31 (Friday, Treasury (Friday, Dec. paper: Hire-purchase favor U.S. Canada p a p e r , U.K. 5.82 5.00 ~T7TE~ Hire-purchase (Dec. 22) • Net -2.83 incentive loan (U.K. +) bills: Lower Zurich Panel 4,98 5.82 3.30 Euro-$ deposit 3.21 Zurich 24-11 (German) 6.25 (London) 3-month deposit Nov, 15 J a p a n c o m p o s i t e rate (Date: Sept. 29 ) 4.00 ) 7.29 3.96 (average) U.S. No v Gov't. (Wed. , U.K. W a r L o a n 4.00 3-month deposit 35.195 P r i c e o f gold (Friday, Dec. ) U.K. Canada I n t e r b a n k loan r a t e (Dec. 2 4 - 3 1 ) 3 (Date: 29 U.S. 6. 4 4 (Date: (mid-point) Euro-$ deposit „ 55 6.25 deposit Dec. - Chart 6 (Friday, Dec. 90-day 180*dav Chart (Period: +2.28 4.98 paper Local-authority (Dec. 22) Upper Panel 7.26 4.98 pound Treasury Interbank ) U.K. U.S. Euro-$ deposits: 30-day 29 U.K. Chart 2 ( F r i d a y , D e c . 29 ) Call 5 Dec. 29 Forward co. IV" of d e p o s i t Spread Finance bills: 1968 1967 Chart Dec. 3, G e r m a n Fed. Dec. Dec. (Thurs., (Fri., Swiss Confed. 27 (Fri., ) 28 ) .. 2 5 7. 1 5 Dec. 29 ) 6.. 62 Dec. 7 ) 4. 73 22 Canadian Gov't. (Wed., Dec. 27) 6, 62 Chart 4 (Friday, Treasury Spread bills: Dec. ) Canada U.S. favor Canada Forward Canadian 29 $ N e t h e r l a n d s Gov't, p e r p e t u a l (Friday, Dec. 15 ) incentive (Canada +) Canadian finance paper (Dec. 15) 6. 0 9 5.82 4.98 + Euro- $ b o n d s (Fri., I%ec. 29 ) 7, 4 3 .84 .49 F o r d e s c r i p t i o n s aX^_j&%)rces of d a t a , see s p e c i a l s u p p l e m e n t to H . 1 3 , N u m b e r 239, March Net 3% .35 6.38 16, 1966.
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