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V 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 B O A R D OF a O V H N O R I H. 13 ; No. 357 July 3, 1968. CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H. 13 Chart Series, 1968 0 fD£>£ I. Ten Charts on Financial Markets Abroad Chart Chart 1 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London: Yields on U.S. Dollar Funds London: Yields for U.S. Dollar Investors on 3-Month Funds Interest Arbitrage: Fraikfurt/London, Zurich/London Interest Arbitrage: New York/Canada Interest Arbitrage: New York/London Short-Term Interest Rates Long-Term Bond Yields Spot Exchange Rates—Major Currencies Against U.S. Dollar 3-Month Forward Exchange Rates Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS NEW Y O R K - L O N D O N : YIELDS O N U . S . 3 - M O N T H D O L L A R D E P O S I T RATES DOLLAR FUNDS Wednesday Figures Per EURO-DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURO-DOLLAR OVER U.S. CERTIFICATE 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. Jen. Sipt. Die. Mar. 1965 Jew. 1966 Sept. Dec. Mar. Jew. 1967 Sept. Dec. Mar. Jew. 1961 Sept. Dec. 2 LONDON: YIELDS EURO-DOLLAR Friday figure! FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES Per cent per 116 DAY 90 DAY M J $ D M 1965 J 1966 $ I i $ J 1967 . D M J 1968 S D L O N D O N : YIELDS FOR U.S. DOLLAR IMVISTOKS O N 3 - M O N T H FUNDS HIRE PURCHASE A N D Fridoy figures LOCAL AUTHORITY D E P O S I T RATES ( c o v e r e d ) Per cent per EVRt-BOLLAR DEPOSIT. HIRE PURCHASE FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR EURO-DOLLAR E M t - M t L A R JEPOSIT L9CM. AVTIIttlTY KPfSIT LOCAL A I T N O R I T Y DIFFERENTIAL IR ERR# DOLLAR 1115 1911 1M7 1ISI j 6 I I N T I R I S T Aft»ITRA«tf< F R A N K F U R T / L O N D O N , Z U 1 I C M / I O N O O N F R A N K F U R T I N T E R B A N K L O A N RATE V S . L O N D O N E U R O D O L L A R RATE ( C O V E R E D ) 1 I N TEI I M S 0 F D M - u r ,, A < y r V - rA I 1 " J * - i I 1 D I F F IE R E N T I A L /\W 1 1 > J 1 1 11 1 1 1 1 Z U R I C H D E P O S I T RATE V S . L O N D O N - i 1 1 i 1 1 \r* yv 'V I N TE RMS C>F S W I ISS FR A N C S V x $ WISS 1u p t s r r » » t i i • • D I F F I 5RENTIIAL V y 1 I V 1 1 .. 1 1 % I 1 y n i i 1 1 i i V Ar> A V / vy h . / i IMS j 1 FAVOR ZURICH - j i i i i 1 1 1 1 1 1 1 111 I cW.ei March 15-April I. IW# ' FAVOIt EURO 0I0LLAR 1 1 1 E U R O D O L L A R RATE ( C O V E R E D ) u / /> / v AV r1 1 1 1 FAVOR i m - I O L L A * I I I I S.I i ' INTERST ARBITRAGE, Friday figures 3-MONTH TREASURY UNITED BILL STATES / C A N A D A Per cent per annum RATES CAN. FIN. CO PAPER UNITED STATES .vv BILL . . RATE , : 1 DIFFERENTIAL 1 AND . FORWARD ; 1 CANADIAN 1 ; H DOLLAR SPREAD IN FAVOR OF CANADA ' V : FOIWAIO DATE 3-MONTH COVERED RATE DIFFERENTIALS (NET V, INCENTIVES) FAVOR C A N A D A TREASURY BILLS PRIME FINANCE PAPER FAVOR U.S. FAVOR CANAOA 1965 1966 1967 1861 2 INTEREST ARBITRAGE, NEW 3-MONTH TREASURY YORK/LONDON BILL R A T E S U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK 1865 1888 1887 1888 ARBITRAGE, NEW RATE DIFFERENTIAL AND YORK/LONDON 3-MONTH FORWARD 4 STERLING SPREAD IN FAVOR OF LONDON 2 PREMIUM 0 DISCOUNT FORWARD RATE 2 V \ 4 6 8 10 2 0 IN FAVOR OF NEW Y I R K 2 4 ! 6 DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) 8 • 1965 1966 1117 1966 S H O R T - T E R M I N T E R E S T RATES* EURODOLLAR - L O N D O N t f ^ H U.S. — SWITZERLAND 9 JAPAN CANADA I 1964 1166 1965 >3-month ireosury bill rotes for oil countries except Jopon (Averoge rote on bonk loons and discounts) Switzerland (3-month deposit rote) and Germany 3-month rate for U S dollar deposits in London (Interbank Loan Rote) 1967 1966 \° L O N G - T E R M B O N D YIELDS Weekly figures Per cent per annum — N E T H E R L A N D S - CANADA U.S. V SWITZERLAND 9 GERMANY U.K. EURO-DOLLAR BONDS 8 1964 $$ * * * 1115 New seriei for Germany starts 7 9 65 New series for Switzerland starts 3-3-67 U.S. EUI U.S. CI 1111 1167 1166 "w S P O T E X C H A N G E BATES - M A J O E C U t l l N C l I S A G A I N S T U . S . D O H A * SWISS FRANC GERMAN MARK — \ K. STERLING BELGIAN FRANC DUTCH GUILDER FRENCH FRANC ITALIAN LIRA JAPANESE T E N - 1915 • Devaluation of the pound sterling from $2 80 to $2 40 1MI 1117 UIS v> 3 - M O N T H FORWARD EXCHANGK RATES A G A I N S T U.S. DOLLARS —NEW YORK Fridoy figures GERMAN MARK S W I S S FRANC POUND STERLING DISCIMNT- DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR 11 11 II i 1 AGAINST POUND STERLING — L O N D O N I PREIl i t e * i A, ft M A A V \ / 1 1 * i 1 1 J 1965 A rb i $ i i • ¥(\ ! av >1yJ V GER M A N M ARK [ I I S I r i s s FRIANC / J /t A I i i B fX: i i I 1967 i 1 S i'!"l I ! S~~~ U/S. DOLLAR lewrl l ! M i l l 1 1 J $ 1966 i 1 1 .. 1 1 M 1966 i l 4 \ 3 360 280 240 SWITZERLAND U.S. 200 GERMANY 160 U.K. 360 320 280 JAPAN 240 200 U.S. 160 120 1915 • »• Swi«« Bonk Corperotien indettriol flock indem. Jopefi: index of 225 industrial and ether steel 1111 1117 111! H. 13 No. 357 July 3, 1968. II.a Latest Figures Plotted in H. 13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, June 26 Euro-$ deposit 6 .75 U.S. certif. of deposit 6,.03 Lower Panels (Wednesday, Chart 4 (Friday, June 28 ) Treasury bills : Canada 6. 35 U.S. ) 5.26 Spread favor Canada +1.09 Call Euro-$ deposit 6,,63 Forward Canadian dollar -0.95 Federal Funds 6.,05 Net incentive (Canada +) +0.14 June 26 n. a. Canadian Finance paper Chart 2 (Friday, June 28 ) ) Chart 5 (Friday, June 28 L ) Upper Panel - Euro-$ deposits: Treasury bills: U.K. Call 30-day 6.62 6.94 90-day 180-day 6. 75 6.88 Uo S. 5.26 Middle Panel Spread favor U.K. Hire-purchase paper 6, 16 U.K. local authority deposit +1. 77 Euro-$ deposit 6.88 n.a. Chart 6 (Friday, June 28 Lower Panel Treasury bills: U.S. Local-authority deposit 3. 77 Euro-$ deposit 6.88 I. Chart 3 Upper panel (Period: June 24-30 ) 5.26 U.K. 7.03 Canada 6.35 Interbank loan rate (German) June 24-30 ) ( 3. 75 Euro-$ deposit (London) 6. 75 Interbank Loan (mid-point) 3. 75 Euro-$ deposits (average) 3.47 Zurich 3-month deposit Lower Panel (date May 15 ) (Date: Zurich 3-month deposit 3.25 Euro-$ rate (covered) 4.19 May 15 ) 3.25 ) 7.52 Japan Composite rate (Date: II. Price of gold (Friday, June 28 40.90 ) April 26 ) H. 13 No. 357 11. b July 3, 1968 Chart 9 Chart 7 U.S. Gov't.(Wed., June 26 ) 5.15 (Friday, June 28 ) U.K. War Loan (Thurs..June 27) 7.68 Against U.S. dollars German Fed. (Fri., June 21 Fri., June 28 Swiss Confed. (Fri., Swiss francs +2.56 Dutch Glds. +1.05 ) 6.34 6.34 ) n.a. German marks +3.46 Fr. Francs n.a. Canadian Gov't. (VJed. ,June 26) 6.88 £ Sterling Can. $ -0.95 Netherlands Gov't. Against pound sterling: -5.23 6.55 Swiss francs +6.54 ) 7.77 U.S. dollars +4.38 ) 7.54 U.S. Corporate Aaa ( May 31 ) 6.27 (Friday, June 21 ) Euro-$ bonds (Fri., June 28 U. Si Euro-bonds ( May 31 Ger. marks +8.62 Chart 10 U.S. ( Chart 8 (Friday, June 28 ) Swiss francs +1.80 Dutch Glds. 40.01 June 28 Japan ( June 21 June 28 U.K. (Fri., June 28 ) 220.9 ) 262.0 266.0 264.3 ) German marks +0.18 ' Can. $ 40.47 Switzerland (Fri,. June 28 U.K. £ Ster. -0.73 40.45 Germany ( May 31 ) 253.4 -0.43 Canada ( ) 201.7 It. Lire Belgian francs+0.22 Jap. Yens June 20 ) French francs -0.74 For descriptions and sources of data* see Special Supplement No. 343-S dated March 27, 1968. 341.2
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