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B O A R D OF GOVER N OR S H. 13 No. 354 June 12, 1968. CAPITAL MARKET DEVELOPMENTS ABROAD Ii Ten Charts on Financial Markets Abroad II.\ Latest Figures Plotted in H.13 Chart Series, 1968 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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS * NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLA1 FUNDS 3-MONTH DOLLAR DEPOSIT RATES Wednesday figures Per cent per annum E U R O D O L L A R 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 F U N I S FUNDS Mar. Jew. Sept. Dec. Mar. 1965 Jew. 1816 Sept. lee. Mar. Jee. 1117 Sept. Dec. Mar. I«. 1S6I Sept. Dec. 3 L O N D O N ; YIELDS EURO-DOLLAR FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DEPOSIT RATES 8 7, 6 30 DAY 5 CALL 110 DAY • 0 DAY M J S D M 1965 J 1966 $ » • J 1167 $ D * J 1361 S D 4 L O N D O N ; YIELDS FOR U.S. DOLLAR INVESTOR* O N 3 - M O N T H FUNDS HIRE PURCHASE Fridov ligurei AND LOCAL AUTHORITY DEPOSIT RATES (covered) Per cent per annum EURO-DOLLAR DEPOSIT. HIRE PURCHASE FAVOR HIRE PURCHASE DIFFERENTIAL i FAVOR EURO-DOLLAR EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT DIFFERENTIAL FWOR 1965 1966 1167 EMRO-PtLLAR 1968 iT I INTEREST ARBITRAGE: FRANKFURT FRANKFURT/LONDON, INTERBANK LOAN RATE VS. ZURICH/LONDON LONDON EURO DOLLAR RATE (COVERED) IN TERMS OF DM EURODOLLAR DIFFERENTIAL FAVOR E U R O - D O L L A R ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS J — H h i SWISS I E M S I T RATE T DIFFERENTIAL n PRICE OF OOLD IN F A V t R ZURICH LONDON 35.5 35.4 45.1 - 43.0 35.3 41.1 35.2 31.1 35.1 3 7 # 35.0 M I 35.0 $ l 1915 0 Mertel tleied $ E 111! 15-April I, I $ • 1 M 7 I N J 1111 S I INTERS! 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 I CANADA BILL RATE DIFFERENTIAL AND FORWARD CANADIAN 2 DOLLAR SPREAD IN FAVOR OF CANADA FORWARD RATE DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CANADA TREASURY BILLS PRIME FINANCE PAPER FAVOR U.S. 1965 1966 1967 1968 1 INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3-MONTH TREASURY BILL RATES | U.K. LOCAL AUTHORITY DEPOSITS I LONDON NEW YORK 1965 1966 1967 1166 INTEREST RATE ARBITRAGE, DIFFERENTIAL NEW 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 T 0 IN FAVOR OF N E W YORK 2 4 6 DIFFERENTIAL WITH FORWARD I . i : I : i i j ; I J s D M J 1965 1966 EXCHANGE ; I 1 ! I I S • COVER (NET I N C E N T I V E ) 1 i i : 1 1 I 1 I 1 i I ' • J s I 1167 c I 1966 J f SHORT-TERM INTEREST RATES ^ EURO-DOLLAR - LONDON f f ^ 8 ^ US SWITZERLAND „ 2 1 9 JAPAN CANADA I US 1964 1965 * 3 month treasury bill roles for oil countries e*ce»i Jepon ™|" 3 Month rote for US dollar deposit! 1111 Average rate em k*mk loom, end discount, 1117 1861 LONG-TERM BOND YIELDS NETHERLANDS CANADA US SWITZERLAND GERMANY UK U.S. EUI U.S. CI 1964 * • * • • • * • • • A.trogt of New ter.et New ser ,ei New ler.ei 1915 1911 > .eldi *or tew foreign government dollor bonds quoted m London tor Germonv UaMi 7 9 65 tor Switzerland i'oru 3 3 67 t©r Neikerlondi «tort» 1 7 66 1967 196# SWISS FRANC rling from $2 80 to $2 40 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS — N E W YORK GERMAN MARK Ki SWISS FRANC /* v/ POUND STERLING DISCOUNT- DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR i AGAINST POUND i I T T T t I i STERLING — L O N D O N GERMAN MARK SWISS FRANC L/\ U . S . DOLLAR VISCIVNTN J S 1965 J 1967 $ I • J 1966 s j 1966 s \3 INDUSTRIAL STOCK INDICES 195M00" 360 320 280 240 SWITZERLAND U.S. 200 GERMANY 160 360 320 280 JAPAN 240 CANADA 200 US 160 120 1965 • »* 1966 Swiss Bonk Corporation industrial stoft mde* Japan index of 225 industrial and other stocks traded on the Tokyo exchange 1967 1968 \ 14 H. 13 No. 354 II.a Latest Figures Plotted in H.13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, June 5 Euro-$ deposit 7. 00 U.S. csrtif. of deposit 6.15 Lower Panels June 5 (Wednesday, June 12, 1968 Chart 4 (Friday, June 7 ) Treasury bills: Canada 6.73 U.S. ) 5.62 Spread favor Canada +1.11 Call Euro-$ deposit 6.50 Forward Canadian dollar -1.90 Federal Funds 5.88 Met incentive (Canada +) -0.79 Canadian Finance paper Chart 2 (Friday, ,Tlinp 7 7.12 Chart 5 (Friday, > ^ June 7 ) Upper Panel - Euro-$ deposits: Call 30-day 6. 12 & 90-day 180-day Treasury bills: U.K. 7.03 U.S. 5.62 6.75 6.75 Middle Panel Spread favor U.K. Hire-purchase paper (May 31) Euro-$ deposit (May 31) Lover Panel + 1.41 1.76 U.K. local authority deposit 7.16 Chart 6 (Friday, 8.31 June 7 Treasury bills: U.S. Local-authority deposit (May 31) Euro-$ deposit (May 31) Chart 3 I. Upper panel (Period: 5. 62 1.45 U.K. 7.03 , 7.16 Canada .Tlinp 1.7 Interbank Loan (mid-point) 3.75 Euro-$ deposits 3.65 ) 6. 73 Interbank loan rate (German) ( June 1-7 ) Euro-$ deposit (London) (average) 3.75 6. 75 Zurich 3-month deposit Lower Panel (date May 15 ) Zurich 3-month deposit 3.25* Euro-$ rate (covered) 3.87 (Date: May 15 ) 3 ) 7.49 • 25* Japan Composite rats (Date: II. Price of gold (Friday, June 7 *April 23 30 May 7 2.75 2.75 2.75 41.20 ) March 29 ) H. 13 No. 354 June 12, 1968 - II b. Chart 9 Chart 7 U.S. Gov't. (Wed. , June 5 ) 5.23 (Friday, June 7 ) U.K. War Loan (Thurs. , j u n p 6) l.L(\ May 31 German Fed. (Fri. , .Tlinp 7 ) 6.11 Against U.S. dollars; Swiss francs +2. 28 Dutch Glds. +1.63 Swiss Confed. (Fri., Mav 17 ) 4.55 May 24 4.54 Canadian Gov't. (Wed. , j u n e 5 ) 6. 89 German marks +3. 20 Fr. Francs Netherlands Gov't. Against pound sterling: £ Sterling -6. 10 (Friday, May 24 ) 6.45 Swiss francs 4-7. 12 Euro- $ bonds (Fri. , June 7 ) 7.70 U.S. dollars 4-5.00 U.S. Euro-bonds ( ) 7.54 U. S. Corporate Aaa ( May 31 ) 6.27 May 31 Can. $ Ger. marks n. a. -1.90 4-9. 26 Chart 10 U. S. ( Chart 8 (Friday, June 7 ) June 7 ) 223.4 Japan ( June 7 ) 264. 6 Swiss francs+1.58 Dutch Glds. +0.04 U.K. (Fri. , June 7 ) 258.5 German marks+0. 26 Can. $ 4-0. 35 Switzerland ( F r i , - June 7 U.K. E Ster. -0.69 It. Lire +0.27 Germany ( May 31 ) 253.4 -0. 58 Canada ( May 31 ) 197.7 Belgian francs +0.44 Jap. Yens ) French francs -0.74 For descriptions and sources of data, see Special Supplement No. 343-S dated March 27, 1968. 338.5
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