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DIVISION OF I J January 3, 1969 NTAL MARKET DEVELOPMENTS ABROAD I. IX. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1969 r n O L A J u c l I. Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York, London: Yields on U.S. Dollar Funds 2 - London: Yields for U.S. Dollar Investors on 3-Month Funds 3 - Interest Arbitrage: Fraikfurt/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 Rates--Major Currencies Against U.S. Dollar 9 - 3-Month Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MOUTHS NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES Wednesday figures Per cent per annum EURO DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF DEPOSIT - A EURO DOLLAR OVER U.S. C E R T I F I C A T E OF DEPOSIT CALL EURO DOLLAR DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE CALL EURO DOLLAR DEPOSITS FEDERAL FUNDS EURO-DOLLAR OVER FEDERAL FUNDS Mar. JWI. Sept. 1965 Die. Mar. Jhr. Sept. 1966 Dec. Mar. jua. Sept. 1967 Dec. Mar. Jan. Sept. 1968 Dec. - V L O N D O N : YIELDS EURO-DOLLAR FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DEPOSIT RATES Friday figures Per cent per 3 0 DAY CALL 110 DAY 9 0 DAY M J S 0 1965 N I 1966 s D M S 1967 D M I 1968 $ D 1 L O N D O N : 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 HIRE PURCHASE A N D L O C A L A U T H O R I T Y D E P O S I T RATES ( c o v e r e d ) Friday figures FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR EURODOLLAR LOCAL A U T H O R I T Y D E P O S I T FAVOR LOC AL AWTNORITY r f Y v A I DIFFERENT IAL ! 1 1 I 1 1 1 I 1 1 1 1 • 1989 1 1 1 1 J 1969 $ 1 1 1 I ! I i J 1967 S \ i D i I FMOR IHRO-D OLLAR J 1968 s * ^ I INTEREST ARBITRAGE: FRANKFURT INTERBANK F R A N K F U R T / L O N D O N , L O A N RATE VS. Z U R I C H / L O N D O N L O N D O N EURO DOLLAR RATE (COVERED) IN TERMS OF DM E U R O D O L L A R INTERBANK LOAN RATE r DIFFERENTIAL — I , — FAVOR FRANKF1 FAVOR E U R O - D O L L A R ZURICH DEPOSIT RATE VS. L O N D O N EURO DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS EURODOLLAR SWISS DEPOSIT RATE T DIFFERENTIAL FAVOR ZURICH FAVOR E U R O - D O L L A R H PRICE OF GOLD IN L O N D O N 5.5 45.0 5.4 43.0 5.3 41.0 5.2 39.0 35.1 37.0 5.0 35.0 1965 1911 1967 1961 INTERST ARftlTKAGE, UNITED STATES / C A N A D A Friday figures 3 - M O N T H TREASURY BILL RATES I CAN. FIN. CO PAPER UNITED STATES /V BILL r RATE 1 1 DIFFERENTIAL 1 AND 1 1 FORWARD 1 C A N A D I A N 1 1— DOLLAR PREMIUM SPREAD IN FAVOR OF CANADA ^ \ 7 I FORWARD RATE i 3-MONTH I /x i i COVERED i RATE 1 i i r DIFFERENTIALS i I (NET i ! r- INCENTIVES) ' ! I *1 TREASURY BILLS i I ,/\A IA / \ FAVOR CANADA I PRIME FINANCE PAPER j FAVOR U.S. FAVOR CANADA 1965 1966 1967 196# 2 n INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3 - M O N T H TREASURY BILL RATES U.K. LOCAL A U T H O R I T Y D E P O S I T S NEW YORK % INTEREST A R B I T R A G E , N E W RATE D I F F E R E N T I A L AND YORK/LONDON 3-MONTH FORWARD STERLING SPREAD IN F A V O R OF L O N D O N PREMIUM DISCOUNT FORWARD I N F A V O R OF L O N D O N RATE T 2 I N F A V O R OF N E W Y O R K RATE D I F F E R E N T I A L W I T H FORWARD 1965 1966 EXCHANGE COVER (NET I N C E N T I V E ) 1967 1966 J SHORT-TERM INTEREST RATES* EURODOLLAR - L O N D O N t TU.K. SWITZERLAND - 9 JAPAN CANADA I GERMANY 1964 1966 1965 >3-monlh treaivry bill rale# for oil countries except Japan (Average role on bonk loam and dilcounli) Switzerland (3-month depoiil role) and Germany ~J~3-monlh role for U.S. dollar depot ill in London (Interbank Loan *ole) 1967 1961 LONG-TERM BOND YIELDS Weekly figures Per cent per NETHERLANDS f CANADA SWITZERLAND GERMANY U.K. EURO-DOLLAR BONDS U.S. EURO DOLLAR BONDS U.S. CORP. A a * BONDS 1964 • » » • * * • * # 1965 Averoge of yields for four foreign govei New series for Germony sloris 7 9-65 New series for Switzerland starts 3-3-67 New series for Netherlands starts 1-7-66 * New series for Switzerland starts 8-2-68 1966 1967 1968 C h a r t 8A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR PercentAbove par SWISS FRANC Par U.K. STERLING Below p a r Above par. DUTCH GUILDER FRENCH FRANC .1 JAPANESE YEN Below par | M J S D 1966 'Devaluation of the pound sterling from $2.80 to $2.40. J 1967 S D M J 1968 S D M J 1969 S D $ Chart 8B SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.2 t. BELGIAN FRANC — ITALIAN LIRA CANADIAN DOLLAR I M J S D M 1966 J 1967 S D M J 1968 S D M J 1969 S Below par D w 3-MONTH FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS-NEW YORK Friday figure? Per cent per a n n u m PREMIUM + GERMAN MARK SWISS FRANC ° x T z POUND STERLING T PREMIUM + DUTCH GUILDER A / " A/ CANADIAN DOLLAR FRENCH FRANC DISCOUNT— M J S. D 1966 J 1967 S D M S 1968 D M S 1969 D Ill 3-MONTH FORWARD EXCHANGE RATE AGAINST ROUND STERLING-LONDON Friday f i g u r e s Per cent per a n n u m PREMIUM* 12 GERMAN MARK 8 4 U.S. DOLLAR 8 1 y ' ! i SWISS FRAiNC Ay, Ivy \f\ ; . 4 i FRENCH FRANC A i ! M J S D M 1966 J S 1967 : DISCOIJNT— D M ! J i i S 1968 i ' 1 M i + 0 ! ! : i ! - I 1 D 1 M , 1 ! ! : J : , ; S 1969 D INDUSTRIAL STOCK INDICES 360 320 280 240 SWITZERLAND 200 GERMANY 160 120 360 320 280 JAPAN 240 CANADA, 200 U.S. 160 120 1965 * * * 1966 Swiss Bank Corporation industrial stock index. Japan index of 225 industrial and other stocks traded on the Tokyo exchange 1967 1968 January 3, 1969 H. 13 No. 383 Chart 1 Chart 4 Upper Panels ( Tuesday, Dec. 24 Euro-$ deposit ) U.S. certif. of deposit 6.58 Dec. 24 Call Euro-$ deposit Federal Funds (Friday, 1/ ) 6.06 6.15 Spread (favor Canada + ) -0.09 Forward Canadian dollar -0-45 7,.50 Net incentive (Canada + ) 6,,21 Canadian Finance paper -0.54 (Dec. 20) 6.50 Chart 5A (Friday, Dec. 27 ) Dec. 27 Euro-$ deposits (Friday, Panel ) U.S. Chart 2A Lower Dec. 27 Treasury bills; Canada 7.44 Lower Panels (Tuesday, Upper Panel 1W II. a. Latest Figures Plotted in H. 13 Series (all figures in per cent per annum) U.K. Local Authority deposit 7.81 Treasury bills: 6. 63 6.15 U.K. U.S. Call 8.00 30-day 7. 81 90-day 7.44 Spread (favor U.K. +) 180-day 7. 31 Forward rate -3.79 Net incentive (U.K. + ) -3.31 Chart 5B Chart 2B Chart 6 Hire-Purchase ( Dec. 20 ) n.a. Local Authority (Dec. 20 ) n.a. Euro-$ deposit ( Dec. 20 ) n.a. Chart 3 I. Upper Panel (Period: +0.48 Upper Panel (Friday, Treasury Bills Dec. 27 ) U.S. U.K. 6.15 6. 63 6.06 Canada Euro-$ deposit (London) Dec. 24-31 ) 7.44 Lower Panel Interbank Loan (mid-point) 4.46 German Interbank loan rate ( Dec. 24-31 ) 4.46 Euro-$ deposits (average) 2.68 Zurich 3-month deposit (Dec.8-1$ 4.25 Lower Panel (date: Dec. 8-15 ) Japan Composite Rate ( Oct. 31 ) 7.40 4.25 U.S- Treasury bills ( Dec. 27 ) 6.15 Zurich 3-mo. deposit Euro-$ rate (covered) (Dec. 31) 5.11 II. Price of Gold (London) 41.68 (average-week ended Dec. 27 ) January 3, 1969 H. 13 No. 383 n II. b Chart 9A Chart 7 Upper Panel (Friday, U.S. Gov't. (TUBS. , Dec. 24 ) 5.92 Dec. 27 ) Against U.S. dollars Upper Panel Netherlands Govt. (Fri. , Dec. 13) 6.59 Swiss francs Canadian Gov't. (Wed. , Dec. 18 ) 7.31 (Wed., Dec. 25 ) 7.,45 Swiss Gov't. Composite (Fri. , Dec.. 20) German marks 44.45 £ sterling -3.79 Lower Panel Middle Panel German Fed. , (Fri. , Dec.20,27) 6,.21 U.K. War Loan (Thus. , Dec. 26) 8.,08 ) 7.,53 Euro-$ bonds (Fri., Dec. 27 Lower Panel U.S. Euro-bonds ( Oct. 31 U.S. Corporate Aaa (Oct. 31 Chart 8A (Friday, Dec. 27 ) 7., 2 0 ) 6., 0 9 ) -9.11 Dutch guilder 40.83 Canadian dollar -0.45 Chart 9B (Thursday, Dec. 26 Against pound sterling ) Upper Panel German mark +8.60 U.S. dollar +3.40 Lower panel Upper Panel Swiss francs +1., 79 German marks -0. U.K. £ sterling French franc 04 - 0 . 64 Lower Panel French francs - 0 . ,24 Dutch guilders +0. 30 Japanese yens +0. 59 Chart 8B (Friday, Dec. 27 ) Chart 10 (Index; 1958 = 100) Upper Panel -0. 13 +0. 78 Italian lira +0. 17 ) ) 258.6 ) ) 370.3 385. 7 Dec. 13 Switzerland ( p e c . 20 . , ( Dec. 30 Lower Panel ) Dec. 27 Canada ( Dec. ( Dec. 19 Japan ( Dec. 2 8 ) ) ) For descriptions and sources of data, see Special Supplement No. 343-S dated March 27, 1968. 278.9 U.K. ( Dec. 26 Germany ( ( Belgian francs Canadian dollars +4.41 +3.92 Swiss franc French franc 237.1 3 2 2 7 , ,9 226. 6 29/, 5 232.
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