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DIVISION O F I N T E R N A T I O N A L F I N A K C E \ B O A R D OF 9 O V I R H O M F E D E R A L R E S E R V E SYSTEM H. 13 No. 112 xf • I v July 10, 1963 Y tAPlTAtrMARKET DEVELOPMENTS A B R O A D Canada II. I. Canada: Nine Charts on Financial Markets Abroad Money and Capital Markets in May and June 1963 Financial markets eased moderately during the period between the reduction in the discount rate from 4 to 3-1/2 per cent on May 6 and the Budget Message of June 13. Controversial features of the latter, intended to reduce the degree of U.S. control over Canadian industries, proved seriously unsettling to the stock market and also induced some speculation against the Canadian dollar in the foreign-exchange market. With the announcement on June 19 that the most objectionable proposal had been withdrawn, both markets recovered their previous levels. Under the new budget for 1963-64, governmental pressure on capital markets is expected to be somewhat reduced in the new fiscal year ending March 31, 1964, chiefly because advances to the Exchange Fund Account (included in "nom-budgetary transactions") are likely to be sharply below those-required last year. (See Table 1.) Table 1. Canada: Budgetary Accounts, Fiscal Years 1962-64 (In millions of Canadian dollars) Cash Requirements Budgetary transactions Revenue Expenditure Deficit (-) ^ Actual 1961-62 1962-63 , Estimate 1963-64 5,730 -6,521 - 791 5,876 -6,585 - 709 6,260 -6,845 - 585 313 - 758 - 265 - 478 -1,467 - 850 - 417 403 928 50 17 478 736 280 48 1,467 Non-Budgetary transactions (net) Net cash requirements (-) Financing Government bank balances (increase-) Public debt , Bonds Treasury bills Other Total - I V .1 850 - Source: Canada, House of Commons, Budget Speech delivered by The Honourable W. L. Gordon, June 13, 1963 and Budget Papers. OFFICIAL USE ONLY (Decontrolled After Six Months) 850 OFFICIAL USE ONLY - 2 - Money market. Canadian short-money rates fell gradually but steadily throughout the month of May, at least partially in response to the bank rate cut from U to 3-1/2 per cent on May 6. By the end of the month, the auction. rate on the 3-month treasury bill had fallen to 3el9 from 3-66 on April 25o It rose slightly in early June, whether in sympathy with the rise in U.S. short-term rates or in anticipation of the Budget Message, but had eased to 3*22 by June 20. (See Table 11 and Chart So) As Canadian short-term yields declined, the uncovered spread of the Canadian over the U.S0 treasury bill fell from 0.77 per cent on April 25 to settle at about 0„20 per cent by the end of May, The fully-hedged arbitrage incentive favoring the Canadian bill has remained little changed at about l/h 1/3 per cent per annum_since early May, as declines in Canadian Treasury-bill yields have been offset by the shift of the forward Canadian dollar from discount to a slight premium,, (See Table 11 and Chart 1.) Canadian finance-paper yields shared the decline in short rates from late April to mid-May. But the declining cost of forward Canadian cover more than offset the decline in yields on finance paper, and the fully-covered spread over U.S. financed paper widened from parity at the beginning of May to about 1/3 per.cent near the end of the month. By late June, the fully-hedged financepaper incentive remained at l/k per cent (see Table 2). Some funds are reported to have moved into Canada on an uncovered basis* Table 2<» U»S„ and Canadian 3-month Finance Paper Arbitrage Calculation ~ ' (in per cent per annum) March Z9 April 12 3 Canada United States 3.87 3.12 3.63 3.06 3.50 , 3.06 Difference Three-month forward discount on Canadian dollar 0.6$ 0.57 o.UU =0.67 -0.51 -Ookh 0.02 0.03 - Favor Canada 2k June 21 3.37 3.06 3.U3 3.06 3.38 3.19 0.31 0.37 0.19 May 17 • *"" ' 0.31 — 0.37 +0.06 0.25 Bank loans and bank liquidity<> General loans by Canadian chartered banks maintained a rapid advance from late April to early June, but they have not recovered to the peak of September 1962. Between April 2h and June 5, the total of these loans outstanding by the chartered banks increased by $259 milliono (See Table 2.) However, on a seasonally-adjusted basis, general loans declined by $26 million to mid-June0 Press reports indicate that a major part of the increases in loans during May can be attributed to an expansion of consumer credit, notably in automobile financing. OFFICIAL USE ONLY OFFICIAL USE ONLY Table 3. Canadian Chartered Banks: Changes in Deposits and Selected Assets, 1962-63 (Can. $ million or per cent) Change during month 1963 Mar. Apr, » Change during Quarter W " W I . IV III June 12 1 1 + 17 +298 i t 1. Reserves May* + 16 - 53 2, Ratios a/ Cash Ratio Liquid Asset Ratio 8.16 6.16 8.11 8.09 8.13 8.15 8.10 15.87 17.96 18.32 18.30 17.51 17.66 18.56 3. General Loans +198 -299 + 35 +1U5 + 2h +195 6,693 +196 +337 +1U5 + 86 t - +533 +231 c/ - 15 +3JD16 -7U5 + 99 5. Total Canadian -61*2 -109 + 21 ii k 11 £/ - 69 +266 £/ - 16 +130 1,158 2,65ii + i In Other Assets b/ Treas. Bills"" - 71 Govt. Bonds -560 Total, Govt. Securities -631 + 51 1,323 2,U12 +>3 3,735 +293 lii,U37 a 7 R a t i o s given are averages for the periods shown. 5/ Amortized value. £/ Par value. * Preliminary. May figures cover period April 2It-May 22. As general loans expanded, the chartered banks added about $125 million to their holdings of Canadian treasury bills between May 1 and June 20, and raised the liquid asset ratio by about 1/2 per cent to 18.53 per cent, well above the 15 per cent agreed minimum (see Table 3 and U). Between the end of May and mid-June, the chartered banks and the Bank of Canada acquired substantial amounts of government bonds. (See Tablell . ) Bond market. Government bond yields declined throughout most of May, although a good deal less than did bill yields. Bond-yield declines were noticeably less in long maturities than at the short end of the yield curve. The very slight decline in long yields had stopped by the middle of May, while very short maturities continued to share (at a reduced pace) the decline in money rates (see Tables 5 and 11 and Chart 6). OFFICIAL USE ONLY OFFICIAL USE ONLY Table L. Canada: -k- Net Purchases (+) or Sales ( - ) of Government Securities ($ millions, par value) 19 6 3 May 1-May 29 March 2?-May 1 Bank of Canada Chartered Banks Government Accounts General Public Change in Total Outstanding d/ a/ b/ c/ d/ Includes a Includes a Includes a Components Table Treasury Bills + 1U0 90 26 96 /" 1 3 2 a/, llh y May 29-June 20 Other ^ H T - 16 - 2 + 27 Treasury Bills +60 +21 - 8 Other "rsr +91 - 1 c/-13 +192 -109 decrease in decrease of decrease of may not add Canada: Other S + 21 Treasury Bills - 29 + 6U - 3 - 6 holdings of Canada Savings Bonds of 87 million, $23 million in holdings of Canada Savings Bonds, $80 million in holdings of Canada Savings Bonds. to total due to rounding. Changes In Selected Securities Yields, May-June 1963 (In per cent per annum) ' Changes: May 2May 9 May 9 May 23 .May 23 June 20 Level on _June 2 -0.27 -0.3U -0,10 -0.09 -0.01 ' +0.01 3.22 3.32 -0.18 -0.05> -0.03 -O.Oli -0.09 +0.03 it,02 U.85 -0.03 -O.OU — U.90 Treasury bills" 3-month 6-month Government bonds 2 - 3 A per cent of June 1967-68 3-l/U per cent of October 1979 3 - 3 A per cent of February 1996 March 1998 Corporate and local-government bond yields also declined slightly during May. During the month, the Mcleod, Young, Weir and Co. average of 1*0 such bonds edged downward from £.33 to 5.32 per cent (see Table 6 ), OFFICIAL USE ONLY OFFICIAL USE ONLY Table 6. -5- Canadian Corporate and Local Government Bond Yields (In per cent per annum) 19 6 2 May 31 Local Governments 10 Provincials 10 Municipals' Corporate: 10 Public utilities 10 Industrials UO Bond average yield Source: 1 9 6 3 March 29 April 30 Nov. 30 May 31 5.^3 5.05 5.UU 5.59 5.39 5.51 5.32 5.U7 5.29 5.39 5.27 5.39 5.39 5.U2 5.L6 5.U9 5.U2 5.L5 5.39 5.33 5.38 5.3U 5,20 5.32 5.UU McLeod, Young, Weir and Co., Ltd. (Toronto), Press release, June 3, 1963. Stock Market. After rising steadily for leveled off in early May. The DBS index in the week ending April b to II4.O.6 five thereafter at around the lUO level until (See Table 7 and Chart 7*) a month, Canadian stock prices of 76 industrials rose from 130.9 weeks later, Prices stabilized the presentation of the Budget, In reaction to Canadian dissatisfaction with the degree of U.S. control over C anadian industry, the Speech from the throne on May 16 had incorporated. proposals for marshalling the nation's savings in an effort to relieve Canada's dependence on New York for capital. Two new financial intermediaries are to be created: (a) A National Development Corporation, channel funds into new Canadian industries or increase Canadian ownership in existing industries; and (b) A Municipal Development and Loan Board, authorized to purchase municipal bonds out of a $1*00 million Treasury loan fund. These positive measures were followed in the Budget Message of June 13, by punitive tax proposals aimed explicityly at reducing the.incentive for American "takeover" direct investment, which had been occuring in particularly heavy volume during the last half of 1962. a. The 15 per cent withholding tax applied to all dividends paid to non-residents since I960 is to be modified. The withholding rate will be raised to 20 per cent for corporations in which Canadian ownership is less than 25 per cent. For corporations where Canadian ownership is 25 per cent or more the tax will be lowered to 10 per cent. A. partial refund will be made to corporations which achieve Canadian ownership of 25 per cent by 1967. OFFICIAL USE ONLY -6- OFFICIAL USE ONLY b, 30 per cent tax on large-block sales of Canadian corporation stock to non-residents. Table 7. Canadian and U.S. Stock Prices April DBS Industrials a/ M. Y. Standard and Poor Industrials b/ May June 25 2 9 137.1 138.2 1U0.6 139.8 139.8 73.1 73.h 73.5 73.8 73.5 16 23 30 5 12 139.il lUO.it lliO.l. n.a 73.7 7U.1 73.7 73.5 a/ This series is the recently-published DBS index of 76 industrials (1956 = 100), and replaces the older DBS index of 66 industrials (1935-1939 = 100) previously reported in Capital Markets Developments Abroad series for Canada. b/ Average for the week ended on Friday. These followed heavy sales of Canadian securities and a steady decline in stoclc prices. June 19 threatened to .become "Black Wednesday11 as this downward trend was sharply accelerated after the Exchange opened, reportedly due to sales by U.S. insurance companies and institutional portfolios. About an hour before the Toronto Exchange closed on that day, the Finance Minister announced the withdrawal of the 30 per cent "takeover" tax. Within minutes, almost chaotic buying caused prices in all sections of the market to experience a jump called by the Toronto Globe and Mail "the sharpest about-face in the memory of veteran traders." The reccJTd buying during this last half hour or so was reported to have come largely from Canadians. Because it happened within a single day, the wild market gyration of June 19 will not show up in the statistical records. By 2 p.m. on that day, the Toronto Stock Exchange industrial index had made its sharpest drop since June 21, 1962. But recovery during the final half-hour of trading permitted the record to show that the market closed ahead for the day's trading. In the following week, market conditions became more settled. Budget Estimates. A less transitory aspect of the Budget Message is the reduced Governmental pressure on capital markets foreseen for the new fiscal year. Estimated cash requirements for the year ending March 31, 196U are only 58 per cent of the cash needs of the preceding fiscal year, when &C 7 3 6 million in bonds and SC 280 million in Treasury bills were issued to help finance cash needs amounting to $C 1,U67 million. (See Table 1«) The reduction in the cash requirement will come "~x from a proposed extension of the present 11 per cent sales tax to building materials and a sharp reduction in advances to the Exchange Fund Account (which in Fiscal 1963 -accounted for $C.563 million of the $C 758 million net non-budgetary transactions). How-ver, no estimates have yet been made for advances to the Exchange Fund Account that might be required during the last three quarters of fiscal 196)1, OFFICIAL USE ONLY 19 OFFICIAL USE ONLY -7- Balance of payments. In fact, the large overall balance of payments surplus of the fourth quarter of calendar 1962 gave way to a relatively small surplus in the first quarter of 1963. (See Table 8^ Part of the recorded deterioration, especially in the trade accounts, was seasonal. On a seasonally-adjusted basis, the first quarter trade balance was the most favorable quarter experienced in a decade. However, a sharp fall in the net inflow of foreign capital occurred from the fourth quarter of 1962 to the first quarter of 1963. Direct investment in Canadian industries fell from $C 190 million to $C 65 million, largely the abatement of the large inward transactions of funds to the petroleum and natural gas industries in "takeover" operations of the last half of 1962. In addition, Canadians increased their holdings of foreign exchange by $C 78 million. (This is included in "other capital".) Foreign holdings of Canadian commercial and finance paper were reduced by $C 28 million in the first quarter of the year in contrast with the increase experienced in 1962. Flotations of Canadian bonds in the United States was in record volume in the first quarter. The bulk of these securities were Provincial issues ($C 197 million) and Government of Canada obligations ($C lUO million). These figures do not include the undelivered sales to U.S. residents (as of March 31) totalling $C U01 million. Borrowing in the U.S. From April 1 through May 20, four Canadian bond issues, valued at $ 63.5 million, have been issued in the U.S. market, according to A.E. Ames & Co. The bulk of this sum is accounted for by a £ 50 million loan placed by the Bell Telephone Company of Canada. Canadian issues reported sold in the U.S. during this period were: In April: Union acceptance Corporation, Ltd.: $ 7.5 million secured notes due k/l/lh - 78, placed privately. In May: British Columbia School Districts Capital Financing Authority; $ 5.0 million guaranteed by the Province of British Columbia, per cent securities due 5/15/6U - 83 reportedly sold at a price of 100.55. Bell Telephone Company of Canada: $ $0 million first mortgage bonds due 5/1/88, placed privately. Alliance Credit Corporation: $ 1.0 million secured notes due April 1, 1978, placed privately. A.E. Ames and Company, places sales of new securities in the U.S. at $ 603 million during 1963 to June 10. This total is nearly six times the sales for comparable period of 1962 or 1961.(See Table 9). OFFICIAL USE ONLY OFFICIAL USE ONLY Table 8. Canadian Balance of Payments Quarterly 1962 - March 1963 a/ (In millions of Canadian dollars) 1 9 6 2 II SI CURRENT ACCOUNT Exports Imports Trade balance Other Total -1,402 1,620 -1,665 1,628 -1,559 - 326 - - - 333 1,395 DIRECT INVESTMENT IN CANADA SECURITIES TRANSACTIONS Canadian securities: New issues, Retirement Other 110 - CANADIAN COMMERCIAL PAPER, ETC. 80 52 70 U6 - 28 200 68 76 103 1,721 -1,583 138 - 257 - 119 25 87 U8 h 1,177 - 190 H5 - I - 35 369 109 13 305 2E3 65 52 - 28 61 85 - 9 31 CANADIAN DOLLAR HOLDINGS OF FOREIGNERS Treasury bills Deposits - 18 50 - OTHER CAPITAL (including errors and ommissions) - 8U - U69 551 8U 6I1 SURPLUS OR DEFICIT (-) - 375 - 636 6% ii78 67 FINANCED BY: Extraordinary aid Drawing rights on IMF (increase-) Gold and foreign . exchange (increase-) TOTAL FINANCING a/ b/ 317 1961 IV • i I 50 16 - 3 51 b/707 11 .361 375 W - - 377 ti3 nh - 686 - 101 - 67 636 - 636 - U78 - 67 No sign indicates credit5 minus major indicates debit. Canadian drawing from IMF is included with extraordinary aid. - OFFICIAL USE ONLY OFFICIAL USE ONLY Table 9. -9- Sales of New Canadian Securities Payable in U.S. Funds (In millions of U.S. $) 1963 to June 10 1962 to June 11 1961 to June 12 Source: Total Provincial 603.1 U5.0 — 10 U.S 117.U A.E. A m e s & Comparer: Provincial Guaranteed 363.0 Municipal 29.6 1.5 26,U Corporation 165.5 103.0 91.0 Weekly Bond Sales Summary. Foreign exchange. Demand for the Canadian dollar remained strong throughout almost all of May. During the month, official holdings of gold and Q, S. dollars increased by $1|1 million (see Table 12), while the market price of the dollar fluctuated narrowly around 92.8. Some signs of weakness appeared in the foreign exchange market early in June as speculation centered around the nature of the forthcoming budget. During the first half of June, the market rate on the dollar weakened and may have received some support by the Bank of Canada. By the time the budget had been presented—and, more particularly, by the time the anti-takeover tax had been rescinded, the market once again firmed up. On June 25, the market rate on the Canadian dollar was 92.81* U.S. cents. OFFICIAL USE ONLY OFFICIAL USE ONLY Table 10, Canada: -10- Changes in Official Reserves March 1962-May 1963 (in millions of U.S. (?) dollars) C h a n g e s ^ 1 9 6 2 Gold and convertible foreign exchange March 1 June 2k June 2h Sept. 30 -61t6-*7 +l,3Wi.6 Special net non-market receipts (-) Adjusted change a/-6146,7 + 19 6 3 IV + 9U.8 I + 60,7 April May Outstanding May 31, 1963 +71,3 +U1.0 2,712 711,0 b/+195.0j}/-125.0 633,6 +289,8 - 6U.3 +71.3 + Ul.0 a/ Special assistance received: $300 million drawings from the IMF, $200 million from the Federal Reserve System; $100 million from the Bank of England, and a $6l million advance debt repayment from France. b/ Includes repayment of half the assistance received from the Bank of England and the Federal Reserve ($175 million), the receipt of a Netherlands balance debt repayment ($30 million) and $125 million of the proceeds of a Government of^ Canada loan floated in the U.S. ~ c/ Covers the balance of a Government of Canada loan floated in the U. S* Europe and British Commonwealth Section. II. Chart Chart Chart Chart Chart Chart Chart Chart 1 % Nine Charts on Financial Markets Abroad Interest Arbitrage, United States/Canada Interest Arbitrage, New York/London Interest Arbitrage for German Commercial Banks Interest Arbitrage, Frankfurt/London Short-term Interest Rates Long-term Bond Yields Industrial Stock Indices __ Spot Exchange Rates -- Major Currencies Against U. S. Dollar Chart 9 - 3-month Forward Exchange Rates 1 2 3 4 5 6 7 8 - OFFICIAL USE ONLY v\ Table 11. Canada: Treasury Bill Yields and Exchange Rates 3-mo. Canada U.S. ?-High Low 5.51 3.01 j±L 2.98 2.6U ) April 1 0 18 25 May 2 9 16 23 29 June 6 13 20 3.U8 3.57 3.66 3.60 3.33 3.28 3.23 3.19 3.28 3.19 3.22 2.90 2.89 2.89 2.90 2.91 2.90 2.95 2.99 2.99 2.98 2.98 &/ Difference 3-mo. Can.S y In favor Can. bill c/ Spot Can.# (U.S. cents) 2.59 0.22 0.13 -2.13 0.8U -0.11 95.75 91.73 0.58 0.68 0.77 0.70 0.U2 O.38 0.28 0.20 0.29 0.21 0.2U -o.5U -0.27 -0.20 -o.UU -0.20 -0.06 +0.0U +0.U1 +0.57 +0.26 +0.22 +0.32 +0.28 +0.27 +<5.35 +0.28 +0.31 92.92 92.91 92.9U 92.9U 92.81 92.80 92.81 92.80 92.72 92.67 92.75 . — +0.07 +0.06 +0.07 +0.07 Finance paper 90-179 days 30-89 days 3-1/2 - 3/lt 3-1/2 - 3 A 3-3/8 - 1/2 3-1/2 3 - 1 A - 1/2 3-3/8 3-3/8 - 1/2 3 - 3-1/8 3-3A 3-3/U 3-5/8 3-3A 3-1/2 3-1/2 3-1/2 3-1/8 - 7/8 - 7/8 - 3/lt - 5/8 a/ Thursday q u o t a t i o n s . b / Spread between spot and 3-month forward rate in per cent, per annum. Discount equals (-7° c/ Net of difference in bill yield less discount on 3-month Canadian dollar. Table 1 2 . Selected Government of Canada Security Yields 6-moo Treas,^bill3 Spread Canada over U.S. b/ . y 1962-Kigh Low 1963 April 10 17 2U May 1 June a7 b/ close c/ *' 3.60 3.67 3.80 3.7k 3.U0 3.36 3.31 3.30 3.39 3.30 3.32 2.8U 0.19 0.60 0.68 0.81 0.75 0.U1 0.37 0.28 0.23 0.31 0.23 0.2k Canada over c/ U.S. d/ 5.20 U.oU It.39 a.37 1.33 0.00 0.76 0.72 0.80 u.ui U.32 U.iU u.ll U.11 0.50 U.lU U.07 U.02 o.UU o.UU 0.36 0.30 1.12 0.75 0.58 0.5k Long-term bonds 120 yearJ (35 year) Spread Spread over over Canada Canada U.S. h/ U.S. t/ e/ &/ 5.U8 U.73 U.93 a.91 U.92 a.91 U.86 a.82 U.82 U.8U U.8U U.8U a.85 1.U7 OV73 1.02 0.97 0.98 0.98 0.9U 0.90 0.89 0.89' 0.87 0.86 0.86 5.20 U.8l U.99 U.97 U.97 U.97 U.9U U.9U U.90 1.90 U.90 U.90 U.90 Average yield at weekly tender on Thursday. ~~ Spread between Canadian auction rate and composite market yield of U.S. bill on of business Thursday. Government of Canada 2-3/U per cent of June 1967-68. Spread over U.S. Government 2-1/2 per cent of 1963-68. Government of Canada 3-l/U per cent of October 1979. Spread over U.S. Government 3-l/U per cent of 1978-83# Government of Canada 3-3/U per cent of September 1996 - March 1998. Spread over U.S. Government of 1995o 1 g/ h/ 15 22 29 5 12 19 5.7U 3.19 Intermediate bonds (8 yr.) 1.29 0.86 0.97 0.92 0.93 0.9U 0.93 0.9U 0.89 0.82 0.87 0.88 0.87 INTEREST ARBITRAGE, 3-MONTH TREASURY 1-—, RATE r i DIFFERENTIAL UNITED BILL f AND S T A T E S / C A N A D A RATES [ 1 FORWARD i r I I ^ CANADIAN F O t W A I D BATE 1 J RATE DIFFERENTIAL WITH i r DOLLAR \ _L J J FORWARD EXCHANGE COVER NET I N C E N T I V E IN F A V O B Of C A N A D A + -1 I 1960 1961 1962 1963 INTEREST ARBITRAGE, Friday f i gj» i i i 3-MONTH RATE RATE ! r TREASURY DIFFERENTIAL DIFFERENTIAL N E W i BILL AND WITH Y O R K / L O N D O N ti RATES 3-MONTH FORWARD FORWARD EXCHANGE STERLING COVER 1J. I960 1961 1962 1963 INTEREST ARBITRAGE 3-MONTH -EURO FOR TREASURY DOLLAR GERMAN BILLS, DEPOSIT COMMERCIAL INTERBANK RATES LENDING | BANKS RATE AND I GERMAN INTERBANK I RATE - f . r DIFFERENTIAL AND ( r ' •" i FORWARD DEUTSCHE MARK S P R E A D IN F A V O R Of FRANKFURT". ' F O R W A R D RATE DISCOUNT ( — ) INTERBANK LOAN RATE i / " > ^ /-VI I TREASURY B I U S ^ \ _ L U X L I : L - L L - L N RATE DIFFERENTIAL WITH - N E T INCENTIVE: _Lj L I _ J V J . I I. FORWARD i i EXCHANGE i i COVER IN F A V O R OF F R A N K F U R T ( + ) ~ I \INTERBANK 10AN RATE ;V\/ vrv TREASURY SlltS * N o Ie: S p e c 10I l o r w a r d r o I a a v a i l a b l e l o G e f / ^x/ INTEREST ARBITRAGE, FRANKFURT / L O N D O N Friday figures 3 —MONTH TREASURY BILLS AND INTERBANK LENDING \ RATE DIFFERENTIAL AND 3 —MONTH p., N_ J FORWARD ^ V ^ x V g e r m a n y SATES STERLING t r e a s u r y bills ~ GERMAN INTERBANK LOAN RATE \_ L_L.L RATE V- DIFFERENTIAL WITH FORWARD EXCHANGE COVER 7 V 1961 1962 1963 SHORT-TERM INTEREST RATES* Par 1 V rv.-vv ! M M II 1 1 1 1 1 1 ii 1 1 1 ONDOHA ~ 1 II II II II 1 II v \ 1 I S" j^_±tUR0-D ? II 1 1 1 II M v l \ ' 11111111111 1 II 1 1 1 1 II II r ill i iiiLi "X* 3 m o n t h t r e o i u r y bill f t i i e i f o r nil c o u n i r i c i t; * c t? f t l o p u n ( i m o n t h i n i e r b o n k d e p o s i t r a l e ) a n d S w i t z e r l a n d ( 3 m o n l h d e p o s i t r a t e ~j~ 3 m o n l h r o t e I or U S d o l l a r d e p o n i i L O N G - T E R M B O N D YIELDS .UA.Li;i.i.J ! .! 1 .1 i i i I i 1.1 i 1.1 1959 1960 1961 1)62 1963 INDUSTRIAL STOCK INDICES' , 9 5 8 = 100 Ratio stole GERMANY \ C \ CANADA A • ^ SPOT E X C H A N G E RATES - M A J O R CURRENCIES AGAINST U.S. DOLLAR TT Above J F M A M J J A S O N D J 1961 F M A M J J 1962 A S O N D J F M A M J J 1963 A S O N D par 3 - M O N T H Friday F O R W A R D EXCHANGE RATE figures AGAINST U. S. DOLLARS AGAINST POUND STERLING - L O N D O N V U. S. DOLLAR AGAINST POUND STERLING 1961 - LONDON 1962 1963
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