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DIVISION O F I N T E R N A T I O N A L F I N A N C E BOARD OF O OVBRNORS F E D E R A L RESERVE SYSTEM ^ No. 280 January 4, 1967 CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1967 I. Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Ten Charts on Financial Markets Abroad 1 - New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds 2 - London: Yields for U.S. Dollar Investors on 3-month Funds 3 - Interest Arbitrage: Frankfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-term Bond Yields 7 - Long-term Bond Yields 8 - Spot Exchange R a t e s — M a j o r Currencies Against U.S. Dollar 9 - 3-month Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW Y O R K , L O N D O N , MONTREAL: YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DOLLAR DEPOSIT RATES: NEW Y O R K - L O N D O N EURO DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURODOLLAR OVER J U.S. CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES ( c o v e r e d ) ; QUOTED IN NEW YORK CANADIAN FINANCE COMPANYI FC U.K. HIRE PURCHASE U.S. FINANCE COMPANY Mar. Jun. Sept. 1964 Dec. Mar. Jun. 1965 Sept. Dec. Mar. Jun.1 unnr Sept. Dec. 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 E U R O - D O L L A R D E P O S I T RATES 1 8 0 DAY 9 0 DAY CALL [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 ) EURO-DOLL A R D E P 0 SIT HIRE PURCHASE DIFFERENTIAL [ FAVOR EURO-DOLLAR: LOCAL A U T H O R I T Y DEPOSIT EURO D O L L A R D E P O S I T FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR 1964 1965 1966 1 [INTEREST A R B I T R A G E : F R A N K F U R T / L O N D O N , Z U R I C H / L O N D O N ] FRANKFURT INTERBANK L O A N RATE VS. 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 INTERBANK LOAN RATE EURODOLLAR .DIFFERENTIAL I FAVOR EURO-DOLLAR Z U R I C H D E P O S I T RATE V S . L O N D O N E U R O - D O L L A R RATE (COVERED) IN TERMSVoVsWrt 'NCS EURODOLLAR SWISS DEPOSIT RATE T DIFFERENTIAL FAVOR ZURICH FAVOR E U R O D O L L A R n PRICE OF G O L D I N L O N D O N 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 CAN. FIN. CO.lPAPER CANADA UNITED STATES ! 1 I I I | | | I 1 I |— 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 SPREAD P^EJMl\kfA i | | | | | | | i i r r 3 - M O N T H 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 ) P R I M E FINANCE PAPER F A V O R U.S. FAVOR CANADA TREASURY BILLS M J $ 1963 I 1I I I I I I I I I I I 1I J $ J 1964 1965 I I I I I M F A V O R U.S. I I I 1 1 I I I J 1966 w INTEREST A R B I T R A G E , N E W Y O R K / L O N D O N P* r annum Friday figurei 3 - M O N T H TREASURY BILL RATES LONDON U.K. LOCAL AUTHORITY DEPOSITS NEW YORK RAT E D I F F E R E N T I A L A N D 3 - M O NTH 1 FOR W A R D S T E R L I N G \ z 1 1 1 l 1 1 S P R E / ID I N FAVOR : OF LIUNDON 1 1 I ~\ - V \ " J V -'"X> 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 A A/*/ 17 ^ V / i i i w i i 1 1 1 1 1 I 1 1 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 ) I N FAVOR OF L O N D O N IN F A V O R OF NEW YORK 1963 1964 1965 0 V N 1 FR 0RWA RD RFIITE 1 1 y A f'REMIUIM 1 1 IllSCOUf 1 *v, 1 1 v V 1966 i i SHORT-TERM INTEREST RATES * U.K. EURO-DOLLAR - LONDON U.S. V -T SWITZERLAND JAPAN GERMANY CANADA U.S. 1962 * 1963 1964 1965 3-month treosury bill rotes for oil countries except Jopon IfAveroge rote on bonk loom ond discount!-*) ' Switierland](3-rTionth deposit rote) 'and Ger many (interbank Loan Role) "~P 3-month rate for U S dollar deposits in London 1966 3 LONG-TERM BOND YIELDS GERMANY] A U.K. V EURO DOLLAR BONDS— 1 NETHERLANDS U.S. SWITZERLAND 1962 1963 1964 1965 1966 SPOT EXCHANGE RATES - M A J O R CURRENCIES A G A I N S T U.S. DOLLAR 1.6 S W I S S FRANC 1.2 GERMAN MARK U.K. STERLING BELGIAN FRANC FRENCH FRANC DUTCH GUILDER 'vAl— CANADIAN DOLLAR I T A L I A N LIRA JAPANESE YEN J S 1964 0 S M 1965 D M ) 1966 S D ct ""' »• 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS —NEW YORK GERMAN MARK SWISS FRANC I V POUND STERLING DISCOUNTPREMIUM + DUTCH GUILDER FRENCH FRANC f C7_? CANADIAN DOLLAR DISCOUNTAG AI N S T POUND STERLING — L O N D O N SWISSFRANC GERMAN MARK U.S. DOLLAR DISCOUNTM J iS flieT D M J 1965 S D M J 1966 i S D Chorl 10 J INDUSTRIAL STOCK INDICES Ratio teal* 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 100 300 250 JAPAN 200 CANADA / W / U.S. 150 100 1963 * * 1964 Japan: inde* ol 225 industrial and ether necks traded on the Tokyo enchonge 1965 1966 December 30, 1966 H. 13 No. 280 %%. Latest Figures Plotted in H. 13 Chart Series. 1966 (#11 figures per cent per annua) Upper Panel Chart 1 (Wednesday, D e c . 21 ) Euro-$ Deposit 6.50 U.S. certif. of depoalt 5.60 Lover Panel (Friday, Dec. 23 ) 5.88 Finance co. papers U.S. Canada Hire-purchase paper, U.K. . 6.89 Euro-* deposits:. 6. 12 &• 25 6,62 23 ) 6.47 Treasury bills: U.K. U.S. Spread favor U.K. + 1-70 Forward pound Hat incentive (U.K. +) + 1.03 Chert 6 (Friday. Dec, 2 3 ) Chart 2 (Friday, Dec. 23 ) Call 7-day 30-day Chart 3 Cfridey, Dec - 6. 62 90-day 180-day 4. 7 7 Treasury bills: U.S. U.K. Canede 4 . 82 Interbank loen rate (German) 7. 12 (Dec - 8 - 1 3 ) Hire-purchase peper Euro-* depoalt (London) Local-authority deposit Zurich 3-mo. deposit (Dates 1^ Japan compoalt rate (Date: Sep;. 30 Chert > Upper Panel (Period: Dec. 8-15 ) Interbank loan (mid-point) Buro-$ deposit (average) Lower Panel ) 7,42 Chart 7 i Nov. i 5 (Dates ) 7.13 ) U.S. Gov't. (Wed., 21 U.K. Wer Loen (Thurs.. o ^ ) 22 ) Zurich 3-mo. deposit German Fed. (Frl., Dec, lb ) Price of gold (Friday, Swiss Confed. (Frl.,Dec, 16) it ) Canadian Gov't. Chart 4 (Friday, Dec 23 Treasury bills: Canada U.S. Spresd fevor Canada Forward Canadian $ Net Incentive (Canede •*) Canadian finance paper 4 82 4- 77 +o-o> ' 4-0. 26 +0. 31 - 6.50 (Wed..Dec. 21) 4. 20 ' ,91 Netherlands Gov't perpetual 3% (Friday, • uc- ^ ) Iuro-$ bonds (Frl.,De lb _) For deecriptiona and sources of data, see special supplement to H.13, Number 239, March 16, 1966. 19C7 H. 13 Latest Fl*urea Plotted in H.13 Chart Strict. 196/ (all figure# per cent per annum) Chart 1 (Wednesday, Dec. 28 Upper Panel ) Euro-$ Deposit 6.56 U.S. certif. of deposit 5.59 (Friday, Dec. 30 Lover Penel ) Finance co. paper: U.S. Canada Hire-purehaae paper, U.K. 90-day 180-day Treasury bills: U.K. U.S. 6.44 Spread favor U.K. f-1. 56 Forward pound -0.74 Treaaury bille: U.S. U.K. Canada (Dec. Chart 3 Upper Penel (Period: m Dec, 24-31 ) 7,07 Euro-* deposit (average) 6.81 Lower Panel (Detei Nov, 15 Price of mold (Friday, Nov, (Date: Sept. P " r t ) 30 ) i U.S. Gov't. (Wed.. Dec. 28 .) U.K. Wer Loan (Thurs. .Dec, 29) German Fed. (Frl., Dec/ 23 ) 7. 8 3 Swiss Confed. (Frl.. Dec. 23 ) 4, C a n a d i a n Gov't. Chart 4 (Friday, 30 4.83 HO. 04 Forward Canadian * 4-0. 15 Net Incentive (Canada +) +•0. 19 Zurich 3-e deposit N ° " . . 13 (Date: < Japan compoait rate ) , 198 Csnsdian finance paper ;:-31: 4.:-, 2 3 ) ;Treasury bills: Canada U.S. Spreed favor Canada 4 . 79 Euro-* deposit (London) Interbank loan (mid-point) Zurich 3-mo. deposit V Interbank loan rate (Germen) Hire-purchese paper fi.ai Local-authority deposit 6. 35 4.79 Chart 6 (Friday, Dec. 30 Euro-* deposits: '. -:,go t. 12 <•. ~ r. ) Hat incentive (U.K. +) Chart 1 (Friday, Dec. 30 ) Call 7-day 30-day Chart 3 (Friday, Dec. 30 (Wed. . D e c , 2 $ Netherlands Gov't perpetuel 3% (Friday, Dev. 16) Euro-* bonds (Fri., Dec. 30) 82 . 5.8: 9' 6, 3.; For deecriptione and eourcee of data, see special supplement to H.13, Number 239, March 16, 1966. '
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