The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DIVISION o r INTERNATIONAL FINANCE BOARD OF GOVERNOR# July 31, 1968. CAPITAL MARKET DEVELOPMENTS ABROAD Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS N E W Y O R K - L O N D O N : YIELDS O N U . S . D O H A * 3 - M O N T H D O L L A R DEPOSIT RATES FUNDS EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T E U R O - D O L L A R O V E R U . S . C E R T I F I C A T E OF D E P O S I T C A L L EURO D O L L A R D E P O S I T RATE VS. U.S. FEDERAL F U N D S RATE CALL E U R O D O L L A R DEPOSITS T EURO-DOLLAR DVER FEDERAL F U N D S Mar. Jew. Sept. Dee. Ear. 1965 Jen. 1166 Sept. lec. In. Jee. 1117 Sept. lee. Her. In. 1168 Sept. Dec. 3 LONDON: YIELDS EURO-DOLLAR FOl DEPOSIT U.S. D RATES Fer cent per onnuidf Fridoy figure* 30 DAY ! ; j ! • I j A J w' J 1 I i i J ! 1 $ 1 1 i; \ / r\. ! V Z •• » * Y y i 1 1 • 1915 • 1 1 J 1IN i i ! i i S • 1 1 • i i J 1M7 i i! S i i I i i M i i i i J 1111 S 1 1 I 4 LONDON: YIELDS FOB U.S. HIRE PURCHASE A N D LOCAL DOLLAR INVISTOKS O N AUTHORITY 3-MONTH D E P O S I T RATES FUNDS (covered) EURO DOLLAR D E P O S I T . H U E PURCHASE | FAVOR HIRE PURCHASE 1 DIFFERENTIAL | FAVOR -WRO DOLLAR 1 EMM DILLAR DEPOSIT ISIT LKl DIFFERENTIAL F i f H EfRI-tOLLAR ins 1H7 + 111! 8 6 I INTIRIST ARRITRAOI: FRANKFURT/LONDON, Z U R I C M / t O N D O N FRANKFURT INTERBANK L O A N RATE VS. L O N D O N EURO DOLLAR RATE (COVERED) I N TERMS OF DM DIFFERENTIAL ZURICH DEPOSIT RATE VS. L O N D O N EURO DOLLAR RATE (COVERED) I I IN TERMS OF SWISS FRANCS EVRt-MLLAR 6 S W I S S D E P t S I T RATE I DIFFIERENTIAL / v i 2 \y i V 1 1 IK h v / \ A 1 1 I I 1 1 P I I C I Of e O L D I N I O N I O N Merfcel «!#••< Marck IS-April 1, I9M I I 11 1 \ \ 1 1 V i t / ; i , y v | i / F M N ZURICH v i | i 1 i i ; i i iT! I UII MUU 1 1 l l l U $ ieWer eeei»«W« • - I N T E E S T A R B I T R A G E , U N I T E D STATES / C A N A D A Friday figures Per ceni per annum 3 - M O N T H TREASURY BILL RATES ! C A N . F I N . COL P A P E R UNITED STATES CANADA BILL RATE D I F F E R E N T I A L A N D 2 F O R W A R D C A N A D I A N DOLLAR F O R W A R D RATE DISCOUNT 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 ) TREASURY DILLS FINANCE PAPER FAVIR U.S. FAVM CAW*## 1915 111! I f f7 ISM 3 - M O N T H TREASURY BILL RATES NEW Y 9 R K • RATE D I F F E R E N T I A L A N D % 3 - M O N T H F O R W A R D STERLING S P R E A D I N F A V O R OF L O N D O N PREMIUM DISCOUNT FORWARD RATE I N F A V O R OF N i l 1905 ion YORK 1117 1000 S H O R T - T E R M INTEREST RATES* tU»0-D0U>» - LONDON t t K yu-s- fvr^ SWITZERLAND 9 JAPAN CANADA I US GERMANY ] 1864 1865 1866 13-month treasury bill rot*: (or oil countries except Japan Switzerland ^3 month deposit rate and Germany 3-month role for US dollar deposits in London Average rote on hank leans and discounts Interbank Lean tale. 1867 1866 v> L O N G - T E R M B O N D YIELDS Weekly figure! Per cent per unnum NETHERLANDS CANADA U.S. SWITZERLAND U.K. E N R I - M L L A R BONDS 8 IMS U.S. C M P 1114 • • « • • • • ••• Averoge ol New tenet New tenet New tenet 1985 yieWt leer l t m | a tor Geneoiiy ilerli 7 9 65 ler Swilierleed Hern 3 3 *7 ter Nelkerleedt tlerlt 17 66 till 4elt«r keeii eveled i* Lenten An MNIS 1117 1IU w SPOT E X C H A N G E RATES - M A J O R CURRENCIES A G A I N S T U . S . DOLLAR SWISS FRANC ! r r I • 4 - G E R M A N MARK — + I ! .. U.K. STERLING BELGIAN FRANC ] —i DUTCH GUILDER \ T — f t ^ 1 — F R E N C H FRANC CANADIAN DOLLAR j I T A L I A N LIRA A/>r JAPANESE TEN 1966 1965 sterling from $2 80 1967 1968 3 - M O N T H F O R W A R D E X C H A N G E RATES A G A I N S T U.S. D O L L A R S — N E W YORK GERMAN MARK SWISS FRANC POUND STERLING DUTCH GUIuDER \ F R E N C H FRANC C A N A D I A N DOLLAR IISCiNNT- A G A I N S T POUND STERLING — L O N D O N GERMAN MARK S W I S S FRANC ! I W U . S . DOLLAR BISCMNT 1965 1967 1116 1968 \> INDUSTRIAL STOCK INDICES l95 360 320 280 2*0 U.S. 200 160 I.E. 120 360 280 200 IS. Ill 120 1115 • • • 1 H I Swin Milk Cer^ereliee iedeslriel «leck iafci iapmm index ef 223 iedesfriel eed ether ilecki trm4m4 em Mke Tek*g e»cke*#e 1M7 July 31, 1968 H. 13 No. 361 Ila. Latest Figures Plotted in H.13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, Euro-$ deposit 6.18 U.S. cartif. of deposit 5.88 Lower Panels Chart 4 (Friday, July 26 July 24 ) (Wednesday, Call Euro-$ deposit 5.78 Federal Funds 5.17 U.S. July 24 ) 6.10 40.66 Spread favor Canada Forward Canadian dollar -1.61 Net incentive (Canada +) -0.95 n.a. Canadian Finance paper Chart 2 (Friday, July 26 Chart 5 July 26 (Friday, ) ^ 5.83 Treasury bills: Canada ) Upper Panel - Euro-$ deposits: Call 30-day 6.00 90-day 180-day Euro-$ deposit U.S. 5.17 6.18 6.50 +1.73 Spread favor U.K. Middle Panel Hire-purchase paper Treasury bills: U.K. 6.90 July July July July 12 19 12 19 5.09 5.54 6.34 6.38 U.K. local authority deposit 7.94 Chart 6 July 26 (Friday, Lower Panel Local-authority deposit July 12 July 19 Euro-$ deposit July 12 July 19 Chart 3 I. Upper panel (Period: July Interbank Loan 16-23) (mid-point) 3.62 (average) 3.36 Euro-$ deposits Treasury bills: U.S. 5.17 U.K. 6.90 Canada 5.83 4. 78 5.41 6.34 6.38 Interbank loan rate (German) ( July 16-23 ) 3.62 Euro-$ deposit (London) 6.18 Zurich 3-month deposit Lower Panel (date June 15 ) (Date: Zurich 3-month deposit 3.75 Euro-$ rate (covered)(July 23) 4.91 June 15 ) 3.75 ) 7.52 Japan Composite rate (Date: II. Price of gold (Friday, July 26 38.92 ) May 31 ) July 31, 1968 H. 13 No. 361 - lib - Chart 7 U.S. Gov't. (Wed., Chart 9 julv 24 ) U.K. War Loan (Thurs., July 18) (Thurs., July 25) German Fed. (Fri., July 19 ) (Fri., July 26 ) Swiss Confed. (Fri., July 1 9 ) Canadian Gov't. (Wed., July 17) (Friday, 5..06 7.,60 7.,55 6.,34 6.,33 ,a. ,a. Netherlands Gov't. July 2 6 ) Against U.S. dollars: Swiss francs 40.65 Dutch Glds. 4-1,.45 German marks 4-2.78 Fr. Francs -2.,79 £ Sterling -2.14 Can. $ -1.,61 Against pound sterling: (Friday, July 19 ) 6. 63 Swiss francs 4-2.45 Euro-$ bonds (Fri., July 26 ) 7. 72 U.S. dollars 4-1.88 U. S. Euro-bonds ( June 30 ) 7. 57 U.S. Corporate Aaa (June 30 ) 6.28 Ger. marks 4-5.00 Chart 10 U. S. ( Chart 8 (Friday, July 26 ) July 26 ) 218.2 Japan ( July 26 ) 275.5 ) 262.5 Swiss francs +1.80 Dutch Glds.-0.09 U.K. (Fri., July 26 German marks -0.35 Can., Switzerland U.K. £ Ster. -0.25 It. Lire $ Belgian francs40.il Jap. Yens +0.,78 (Fri,. July 26 ) +0.,48 Germany ( July 26 ) 263.2 +0.,03 Canada ( July 18 ) n.a. French francs - 0 . 7 4 For descriptions and sources of data, see Special Supplement No. 343-S dated March 2/, 1968. 329.3
@FedFRASER