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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTHES A THE US. •BEKLV semes OF CHAHTS TABLE OF CONTENTS PARTI. EXCHANGE RATES AMD GOLD PRICES Chart 1A and 6 - Spot Errhanpf Rates, Major Cumwcies igaiart U.S. Dollar Chart 2A and 8 - 3 Mm# fonwrd Exchange Rales, M#jor Currencies i f j a i f U.S. Dollar Chart 3A andB - 3 Month Forward Exchange Rates, Major Currencies against U.IC Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Charts - Call Money Rates Chart 6A and B - London: £wo-$ Deposit Rates Chart 7A and 8 - Mew York - London: Yields on U.S. Dollar Funds Chart 8A and B - London: Coveted Yields on U.S. Dolly Funds Chart 9A and B - hterest Arbitrage: United States4Jaited Kfcgdom Chart 10A and B - Interest Arbitrage: U.S.-Germaoy and U.S.-Switaerland Chart 11 - Interest Arbitrage: United Shier Canada Chart 12A and B - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AMD STOCK MttMCES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Slock indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, whidi was published under that title throw# December 31, M S . The changes in the format and order of the charts ate explaiaed in the Supplement to the series, utiich accompanied issue dated January 1,1*9. All series and their sources are hilly described in a Sqpptement dated January 1,1972. Chart 1A SPOT EXCHANGE RATES - MAJOR CURREWOES AGAINST US. DOLLAR Weekly averages F»f cent GERMAN MARK US V SWISS FRANC 1 T ' DUTCH GUILDER FRENCH FRANC JAPANESE YEN M J 1972 • P o u n d floated June 23 1972 * * Swiss Franc floated January 23, 1973 S D M J 1973 S D A Chart 18 S O T EXCHANGE RATE - MAJOR CURREMCES ACAMffT IIS- DOLLAR Weekly a vet ages fler caet US flfl s J « D 1*72 ftrto j 1*73 0 s scale. U S cents «**> * * * u S ^ t s m 240 w j S S 1970 D D W V J SS 1*71 DD W J S s D 1*72 D W J J 1*73 s 0 Chart 1C EXCHANGE KATES May 11. 1971 - Dec 17. 197J JAPAN U.S. MAY JUNE JULY AUG SEPT 1971 * Financial franc OCT. NOV. DEC. \o MTES Dec 17. 1171 •ML ITALV UJC. ITALY US SWfTZ MAY JULY AUG. OCT 1971 • f o r clarity the vertical scale is double that used in 1C Chart 2A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCES AGAINST US. DOLLAR Weekly averages Per cent per am PREMIUM 4 CANADIAN DOLLAR 0 U.K. POUND 4 DISCOUNT PREMIUM < 8 GERMAN MARK 4 0 4 DUTCH GUILDER 4 + 0 DISCOUNT - 4 M J S 1970 1971 Canadian Dollar Rate not supported by Bank of Canada I I i 3-MONTH FORWARD EXCHANGE - M A X * CUMENCES A6AWST U-S- DOHA* Weekly averages 1 1 | I I | Pef cent per annum 1! | 1 ! 1 1 | 1 ! | 1 I | M . j I 1 : ' ! I ! 1 | 1 ! PREMIUM • FRENCH FRANC - - r^X f DISCOUNT — ~ PREMIUM • SWISS FRANC - v \ sr DISCOUNT 1 1 1 1 1 1 1 1 1 1 1 M J S D 1970 i i M 1 i i 1 i J 1971 i S 1 i D i 1 1 1 ! M J 1 1 1 1 1 1 1 S 1972 D 1 1 1 1 1 1 1 1 1 1 1 M J S D 1973 % 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJL POUND Friday figures P * CWt per 1 PREMIUM + ! - - i ifl _ i \l\ / - GERMAN MARK A N 1 I 1 ! nJ VlWm us - ! D0IJLAR - - | 1 DISCOUNT - i i 11i i 11M M J S D 1970 M J 1971 S D M J S 1972 D M J S 1973 D \0 Chart 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UX. POUND Friday figures Per cent per annum PREMIUM + i 1 i i t SWISS FRANC - r z^y \ k/ V FRENCH f r a M C \ i 1 DISCOUNT - j 1 ! M S J D 1970 M J 1971 S O M J S 1972 D M ; 1 1 i i J I i J 1973 _i.. \\ Chart 4 GOLD PRICE HI LONDON, 123 Kg BARS Week's average of afternoon fuuogs U S dollar equivalent per tme ounce 70 SO 90 M J S 0 1070 I M J 1071 S 0 M J 1072 s D H J 1071 $ e Chart 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per a n n u m CALL EURO-DOLLAR DEPOSITS ! OVERNIGHT EURO-OOllAR DEPOSITS |i FEDERAL FUNDS DIFFERENTIAL J FAV0R EURO-DOLLAR OVER FEDERAL FUNDS I 1 rh.tA\ m A/ ,M. i v* w\| I .1 1 i : i i i 1 i i 1 i i 1 i i 1 ii L ~w v n / % # r V v ^ A v V X WV EURO-DOLLAR V 1 FAVOR FEDERAL FUNDS 1 i i 1 i i 1 i ; 1 i i 1 i i 1 i i 1 i : 1 i i 1 i i EURO-CURRENCIES Weekly averages Per cent per a n n u m EURO-OM EURO-SWISS FRANC M S D D 1970 1971 * Changed f r o m CALL to OVERNIGHT Euro dollar deposits, May 10, 1971 S 1972 D M J 1973 S D Owtss CALL MOHEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures , L i i ! : i i i i ! i 1 ' 1 j , ! JAPAN V V ' J CANADA ; i i ; , ' i : : • i • 1 i M i l l ! ' UK. G ERIE ANY J S S 1970 1971 s D D 1972 France, Day to-day Money, Netherlands. Call Money, weekly average, Japan Unconditional Money; Canada, Day to day Loans, weekly average, Germany, Call Money; U K , 2 day Local Authority Deposits M S 1973 D LONDON: EURO DOLLAR DEPOSIT RATES Friday figures - 12 10 OVERNIGHT SuK . 1 1 V u icT | . iVuv r 1 1 i i l l 1 i , i 1 1 1 l 1 ; : 1 # . 7-DAY i 1 1 1 i - I m I m I m i i l i l i i i i i i 12 - 10 - \ y v i H I - 1 r w 1 1-MONTH yy* i - i i 1 M M i i i 1 : i J S u 1 1 1 II D M 1970 1 1 ! 1 I i J S 1971 * 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 Euro Dollar ~ ^ D - l l M i 1 l J ! 1 l 1 1 1 S 1972 D I 1 1 1 1 1 1 1 1 1 1 M J S 1973 D y? .Chart 6 8 LOADOA: EURO-DOLLAR DEPOSIT RATES - Vv \ A - v /vV 3-MONTH / - i i 1 i i 1 i i 1 i i1 1 1 1 1 1 1 1 i1 i 11 1i i 1 i i I i i i i 1 i i 1 i i 1 i i . - Vv \ A vA f - i i 1 i i 1 i i 1 i - i 1970 V i i 1 i i 1 i 1971 i 1 i i 6-MONTH y J ^ / K r ^ 1 1 1 1 1 1 j i i 1972 11 1 1 1 1 1 1 1 1973 J 1 1 1 Chart 7A NEW YORK-LONDON: YIELDS ON U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATEb-sLCONDARY MARKET Wednesday figures Per cent per annum I 12 - \ 10 Vu - - l > \ j \ EURO-DOLLAR DEPOSIT y - U S. CERTIFICATE OF DEPOSIT . ; 1 • 1 i , ; : i i , ! , ! : i , 1 • 1 ; : 1 i i 1 i i i i i 1 i i FAVOR EURO DOLLAR DIFFERENTIAL J EURO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT 0 v\ NEW YORK-LONDON: COST OF U S . DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RAlto-rklMARY MARKET Wednesday figures Per cent per annum EURO-DOLLAR DEPOSIT ADJUSTED** EURO DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT ADJUSTED* EURO-DOLLAR OVER US. CERTIFICATE OF DEPOSIT ADJUSTED* I I l t i I I I I J S D M 1970 J S 1971 * Adjusted for Reserve Requirement * * Adjusted for 10% Marginal Reserve Requirement * * * A d j u s t e d for 20% Marginal Reserve Requirement D I i I I M J S 1972 D 1 I I I I I I I I l i I 2 M J S 1973 D k 1% Chart 8A LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE/STERLING CD's vs EURO DOLLAR RATES Per cent per annum Friday figures 12 - EURO-DOLLAR DEPOSIT -HIRE PURCHASE COVERED STERUMG CD s COVERED 2-" 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 _ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 FAVOR STERLING CD's DIFFERENTIAL ATla J\ Ai A iA 1 / v y FAVOR EURO DOLLAR 1 I M 1 I 1 1 1 1 1 1 1 J S i D 1970 i M l i i J l i S 1971 i l i D i i W i I i i J 11 S 1972 * H i r e Purchase suspended August 11, 1972 and Sterling Certificates of Deposit begin August 11, 1972 l I i D i 1 1 1 1 1 1 1 1 1 1 1 W J S 1973 D \ Chart 88 LONDON: COVERED YIELDS ON US. DOLLAR FUNDS LOCAL AUTHORITY AND EURO uv, -v.". RATES Friday figures - - EIM0-0OIJJM OEFOSIT \ K LOCAL Allm*ownr DEPOSIT COVERED 1 1111111111 1 1111111111 i i 1i i 1 11111 i i 1 i i 1 j j i _j—i— FAVOR LOCAL AUTHORITY - iA A A \j\I^ y ~ DIFFERENTIAL l 1 1 1 1 1 1 1 1 1 1 .I I i I I i I I i I I J S 1970 1971 V v VVv \ FAVOR EURO-DOHA* I l 1 I 11 I I 1 I I j 1972 s 1 1 1 1 1 1 1 1 1 XL. j 1973 s Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINuUO* Friday figures Per cent per annum 3-MONTH TREASURY BILL RATES U K LOCAL AUTHORITY DEPOSITS UNCOVERED I LONDON J S D 1969 * Plotted for comparison purposes M J 1970 s D J 1971 S D M J 1972 S D 0> owtse INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum RATE DIFFERENTIAL AND 3-KONTH FORWARD STERLING I NATE DISCOUNT f6VCF LONDON DIFFERENTIAL FAVOR M J S 1SSS D m J 1970 S D M j 1971 S D M NLA VOR* j J 1972 S 0 4 3 - H M T H FUNDS MTESEST M i m M f i E : B M M O U M L FRANKFURT INTERBANK LOAM RATE VS LONDON WBOVOLLM HATE A; DIFFERENTIAL WM/ Mo Quotation OwtlOS 34KWTM HMOS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE W e d n e s d a yf M e s Per cent per annum IM TERMS OF SWISS FRANCS COVERED fAWORAWKW fAKW EUeOOOLUW « J s D Itfii No quotation « J 1S70 S D M J 1S71 S D m J W2 s o Chert i l 3-MOWTH ft****** i i I i i I i i ] i 1 BUI RATES UNITED STATES - CMUtoA I I | I 1 I I I | I I BILL RATE DIFFERENTIAL AMD FORWARD CANADIAN DOLLAR MFMWOFCMMM COVERED RATE DIFFERENTIALS Fw r f i w fMwaa y v y ^ V y y ^ W ^ \ / ^ / » N A r ^ v . I I I I I I I I I I I i i l I I 1 I I 1 I I i-J J J I I I I I W j S C M i S O M J S 1971 I I O l i K I I 1I I I 1I i S P / z u Chert 12A SELECTED SHORT-TERM INTEREST RATES* UJK. 9 JAPI . 1968 1970 * 3-month treasury bill rates for all countries except Japan (Average rate on bank loans and discounts) and Germany!Interbank Loan Rate) WTBEST tATES A f 1 I 1111 11 I 11 I 11 I 1 • tollf«te for tewstwy f«tc for U S 9.S. fcwlMrtend Chart 13 LONG-TERM BOND YIELDS Weekly figures Per cent per annum 1 0 NETHERLANDS - U.S. CORP. DOLLAR EURO-BONDS U S CORP Aaa BONDS U S CORP. DM EUROBONDS 1968 * 1969 1970 1971 1972 series lor Switzerland starts 8 2-68, U S Corp Dollar Euro-Bonds and U S Corp DM Euro-Bonds starts 12 70 Average yield of all German PA Bonds begins 1 7-69 * * * New set.es F starts 12 71 7 it* CHMTT 14 W O U S i W A t STOCK INDEXES UNITED STATES V ^ x , 200 I 1 1 1 1 1 1 1 i1 i 1i i!W j i i 1 i i i i i i j 1 i i 1 i •i i i ; 4 i i. t i i i i ! SWnZEOUM* V w ^ MO J 1 UttfTEO mMCPOli / i i i i i i j i 1 i i 1 1 1 I I 1 I I 1 11 1I I ! 240 M 1 IJ i i l i i l i j l . i l — W A « Z | / 200 y^V/ GEMIAftV 1 1 1 1 1 1 1 1 11 1 1 1 1 ! 1 1 1 1 1! : 1i 1 1 1,11 I I I 1070 h Japao * Mem mdee ef 226 wdvstfai and eHw stocks ion J JJ or Tokyo e*ch*f^e e d e * e f a l l imdwsW#! ami « H w stocks U m M on the first ie< t .or of « i e Tokyo Wook Wc#Mw#e i i 1 *072 i i i i J . I January -33, 1973 H. 13 IV. SELECTED CENTRAL BAN* DISCOUNT RATES •10.595 Country Current Rale In Effect Since Pieriaus ttMe leEEedSw E.E.C.: 5.0 ftmoe 7.50 Dec. 21, 1972 l o r . 30, 1972 Cmmm 5.00 Jan 12. 1973 mr 4.0 A p r i l 10, 1973 4.5 • o r , 22. 1972 6,50 A * 4 • o r . 2 . 1972 • o r . 30. 1972 4,5 Oct, 14, 1972 3,0 Sept. 8 . 1972 * * * * * 4,0 * * * * * * * * * * 8,75 Jan. 19* 1973 9.0 tec. Switzerland 4.50 Jan, 1 . 1973 3,75 Sept. 15. I f W Uailrt States 22, 1972 4.75 O c t . 25, 1971 5.25 M . 4,25 June * , 1972 4.75 I p r l l 29. 1971 5,00 Jan, 15, 1973 4,50 Dec. 13, W i t * , 1971 * * E f £ e c t l s e October 13, 1972, the Beak o f l ^ k a i r e p l a r a * I t s t r a d l r t a n a l Beak Bate w i t h a f l u c t u a t i n g ^ d a t a a i I w l f i rat«T I m m 4 « • a a n p T w — g y M i l tender r a t e . January 19, 1973.,-8,75 IV-2 LATEST FIGURES PLOTTED OH THE CHARTS Chart Pand Series 1A Upper Swiss franc U K pound French franc Japanese yen Lower 18 Upper Lower 2A 28 Upper Lower 3A 4 mme Lower 56 Upper Lower - 43,813 233.76 44.831 4i.W * " Jam. I f f f # 2# Jam. 26 fc- 'S'Slr s MrllT Gmao wart Swiss iranc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Overnight Eiuo-S deposits Federal Funds ttffcwntial Euro-currencies Euro Ml Euro Swiss Fr. Japan, Unconditional Money U K , 2-day Local Author. Oeps. Canada, Day-to-day Loans France, Oay-to-Day Money Genmany Call Money MefheMands Call Money +i.28#r •H-A7A -8.568 M ACXBAL RATE Gold price, U S dollar per ounce Upper Rale Jan, 26 AT baTF Geiwan warfc USdollar Swiss franc French franc 38 5A Belgian franc Kalian lire Canadian dollar Gfiwan mark OWdx guilder Date - -n.tr « 48-8» 3.32 " « ^ gg -1.36 MJL w i - 46,12 43,15 43,18 42,16 " 44 " M 65.2# Jam. 24 5,38 6,80 -8.62 Jam. 26 2,86 5,31 *.88 f,38 Jam# I f lam, 11 f 1 C « Jam. I f Jam. 12 I M | 3,88 13# IV-3 Chart Panel 6A Series Rate Date Euro-S Overnight Rale 6.25 J a n . 26 Euro-S 1-month Rate 66 •i 3-month Rate Euro-S 6-month Rate 7A Upper Euro-S 3-month Deposits 6.44 " 6.56 Jam. 24 6.19 U.S. Certificate of Deposits Lower 76 Upper Lower Upper Euro-S 3-month Deposits M Euro-S 3-month Deposits (Adj.) «« U.S. Certificate of Deposits (Adj.) || 6.19 Differential: on Adj. Euro-S Deposits •' +1,55 Eiifv-S 3-month Deposits Hire Purchase Deposits (cowered) 86 Lower Differential Upper Euro-S 3-month Deposits Local Authority Deposits (cowered) Lower Differential U.S. Treasury Bill rate 9A 40.27 " on Unadj. Euro-S Deposits 8A 5 97 Differential 6.19 7.74 t Jan. Jan. Jan. Jan. Jan. 0.00 12 5 12 5 12 6.06 5.89 5-62 -0.05 -0-44 Jan. Jan. J— Jan. 12 5 i* 5 %mTu 17 6.06 5.51 -0.43 - f l K 5-67 J m . 26 U.K. Treasury Bill rate Local Authority Deposit (uncovered) 96 Upper 9.SO Spread (+= favor London) 3-month Forward Pound Lower * 01 9.38 J a n . 19 Imn. % *7.34 „ -3.65 Met Incentive (+- favor London) 1 -1.31 l¥-4 Chart Panel m Upper Series £IMD-S Deposits (covered) Genua interbank Loan rale 108 Lower Dtftoential Upper Curo-J Deposits (cohered) Dale Jen, 24 •I „ „ Swiss Deposit cale 11 Lower Differential Upper CanaBan Finance Paper 12A *-OO 43.73 -1.43 5 , 2 5 4 67 ,, U.S. Prime Finance paper (not plotted) Second 4,27 4.00p •« U.S. Treasury Bill ale Canadian Tuaaeey Bill rale Bale 5.75 Bill rale tf Wawealial M Forward Canadten dollar «« Tfakd Bet incentive OR tolls II Bono. Bet incentive en Finance Paper M W I S E Upper U.K. Treasury Bill rale H l.flt Jam. 17 5.A7 7.BB U.S. Treasury Bill rale CenmanMekant Loan , * e Lower „ Japanese Awase rale -1.87 -B-re #.751 Canadian Treasury Bill rale U.S. Treasury Bill We MB EMO-S Deposits Swiss 3 worth Deposit cale . M U S. Tmeaaury Bill rale 5A7 I' nr-s Owl Panel Series 13 Ujewr IMheffands Stf* Canada United States U.S. Corn, m Owbandr U.S. Cofp. Aaa bends 14 Switaertand Upper * Camany United Stiles United Kiofda* Middle Canada Lower - Japan Hac. 27 6.71 5>7 5.^ 5.22 S.55 a-64 9-7* Jam. Jna, Jam, te. 19 5 IS 12 sOTES r - . 7.68 SEMES r - . 6.94 Unitnd Kinfdoa U S. Corp. Dollar Emo+m 7.17 JUu l i Gamony Lower A m . #9 Anc. 27 Switzerland Middle Me - - AM 7.06 Jml. 29 A m . 23 315.6 ta. at 267.37 « Am. IS 257.54 299.12r 9M-S3 United Stales Jem. 26 267.37 * Hew - Average yield of ALL Getwan Public Authorities bonds made as #f banking hey days •* Beginning week ended September 5,1970, the Japanese index plotted ts Stat e< all industrial and e#wr sleeks en the First Sectianoflhe Tokyo Stock Exchange.
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