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\ DIVISION OF I N T E R N A T I O N A L F I N A N C E N H ; % 3 BOARD OF O O V | R K ' 3 R I 1 4 ____ CAPITAL MARKET DEVELOPMENTS ABROAD -¥l II. I. TeW C h a r t s on F i n a n c i a l M a r k e t s Abroad Latest Figures Plotted in H.13 Chart Series, 1967 Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - N e v v 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 U - 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 5 - 3-month Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) ' 1 9 6 7 ' NEW YORK, LONDON, MONTREAL: Y I E L D S FOR U . S . D O L L A R DOLLAR DEPOSIT INVESTORS O N RATES: 3-MONTH FUNDS NEW Y O R K - L O N D O N EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T I E U R O D O L L A R OVER I U . S . C E R T I F I C A T E OF D E P O S I T FINANCE CO. PAPER RATES (covered) : QUOTED IN NEW YORK U . K . HIRE P U R C H A S E CANADIAN FINANCE COMPANY U.S. FINANCE COMPANY Mar. Jun. 1965 Sept. Die. Mir. Sept. 1966 Dec. Mar. 1967 Jun. LONDON: Y I E L D S EURO-DOLLAR FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH 30 180 90 FUNDS RATES DAY DAY DAY CALL IRE. P U R C H A S E AND LOCAL AUTHORITY HIRE DEPOSIT PATES (covered) PURCHASE EURODOLLAR DEPOSIT DIFFERENTIAL FAVOR HIRE PURCHASE 5 FAVOR EURO -u DLL An DEPOSIT LOCAL DIFFERENCIAL EURODOLLAR AUTHORITY D E P O S I T FAVOR LOCAL AVOR AUTHORITY EURODOLLAR 4 I INTEREST ARBITRAGE: 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 LOAN RATE VS. LONDON EURO-DOLLAR RATE (COVERED) IN INTERBANK LOAN RATE TERMS OF 8 DM 6 EURO-DOLLAR 4 2 DIFFERENTIAL FAVOR FRANKFURT 0 ; ZURICH DEPOSIT RATE VS. LONDON ! : : EURO-DOLLAR ; RATE ! ! ' 1 1 (COVERED) IN TERMS OF SWISS 8 FRANCS EURODOLLAR 6 S W I S S DEPOSIT RATE 4 DIFFERENTIAL FAVOR ZURICH 0 2 PRICE OF G O L D IN L O N D O N 35.3 35.0 1965 1861 1967 < INTEREST ARBITRAGE, 3-MONTH UNITED TREASURY BILL STATES/CANADA RATES CAN. FIN. CO. P A P E R CANADA UNITED S T A T E S : DILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR S P R E A D IN F A V O R O F C A N A D A VAl/Vxiv"v FORWARD RATE 3-MONTH COVERED RATE DIFFERENTIALS (NET DISCOUNT INCENTIVES) FAVOR CANADA PRIME FINANCE PAPER FAVOR CANADA TREASURY BILLS N J S D 1964 M J 1965 S 0 M J HIS S D M J 1967 S D INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3 - M O N T H TREASURY BILL RATES ; U.K. LOCAL AUTHORITY DEPOSITS! LONDON | /V NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING S P R E A D IN F A V O R O F L O N D O N FORWARD RATE DISCOUNT j 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 C O V E * (NET I N C E N T I V E ) ! IN F A V O R O F L O N D O N IN F A V O R O F N E W Y O R K 1964 1965 1966 1967 vl SHORT-TERM INTEREST RATES * E U R O - D O L L A R - LONDON + SWITZERLAND : . 2 JAPAN GERMANY i i - CANADA U.S. 1963 1964 1965 1966 1967 | 6 LONG-TERM BOND YIELDS NETHERLANDS CANADA SWITZERLAND GERMANY EURODOLLAR BONDS 1963 1964 1965 1966 1967 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC I GERMAN MARK U.K. S T E R L I N G FRENCH FRANC BELGIAN FRANC DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA J A P A N E S E YEN 1965 1966 1967 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS —NEW RATES YORK SWISS FRANC y GERMAN MARK 'x 7 POUND STERLING DISCOUNT FRENCH FRANC DUTCH GUILDER CANADIAN DOLLAR DISCOUNT AGAINST POUND STERLING — L O N D O N S W I S S FRANC GERMAN MARK U.S. D O L L A R 1965 1966 1967 INDUSTRIAL STOCK INDICES 320 280 SWITZERLAND 240 200 GERMANY 160 J 120 360 320 280 JAPAN 240 200 CANADA 160 J 1964 1965 1966 1967 120 v>June 1 4 , H. 13 No. 303 11. L a t e s t F i g u r e ; > P l o t t e d i n H. 13 Chart S e r i e s , ( a l l f i g u r e s p e r c e n t per annum) Chart 1 (Wednesday, Upper P a n e l June 7 5. 75 U.S. 4.48 certif. of d e p o s i t Lower P a n e l (Friday, Finance co. June 9 U.S. Canada H i r e - p u r c h a s e p a p e r , U.K. Treasury b i l l s : Spread f a v o r U.K. +1.72 Forward pound -0.45 Net i n c e n t i v e Treasury b i l l s : Euro-$ d e p o s i t s : 4.88 5.00 90-day 180-day H i r e - p u r c h a s e paper (June 2) Local-authority deposit (June 2) Chart 3 Upper P a n e l (Period: June 1-7 I n t e r b a n k l o a n r a t e (German) 3.79 Euro-$ d e p o s i t 5.25 4.81 Z u r i c h 3-month d e p o s i t (Date: May 15 Japan c o m p o s i t e r a t e (Date: March 31 ) 3.79 4.49 (Date: ) May 15 Z u r i c h 3-month d e p o s i t P r i c e of g o l d (Friday, June 2 4.25 35.188 ) Chart 4 ( F r i d a y , June 9 3.40 5.12 4.23 5.00 Interbank loan (mid-point) Lower P a n e l ) U.S. U.K. Canada 5.25 5.44 Euro-$ d e p o s i t (average) +1.27 (U.K. + ) Chart 6 ( F r i d a y , June 9 Chart 2 (Friday, June 9 ) Call 30-day 5.12 3.40 U.K. U.S. ) 4.38 4 . 77 paper: Chart 5 (Friday, June 9 ) ) Euro-$ d e p o s i t 1967 (London) ) 4.25 ) 7.32 Chart 7 U.S. Gov't. (Wed., June 7 U.K. War Loan ( T h u r s . , ) 4.79 June 8 ) 6.69 German Fed. ( F r i . , May 26 4 - 1 / 2 % ,June 2 Swiss C o n f e d . / ( F r i . , June 2 Canadian G o v ' t . ) ) 6.72 6.74 4. 75 (Wed., June 7 ) 5.79 N e t h e r l a n d s G o v ' t , p e r p e t u a l 37. (Friday, June 2 ) 5.47 Canada U.S. Spread f a v o r Canada 4.23 3.40 40.83 Euro-$ bonds ( F r i . , 6.29 Forward Canadian $ -0.22 For d e s c r i p t i o n s and s o u r c e s o f d a t a , s e e s p e c i a l s u p p l e m e n t t o H . 1 3 , Number 2 3 9 , March 16, 1966. Net i n c e n t i v e +0. 61 Treasury b i l l s : (Canada + ) Canadian f i n a n c e paper ) 5.25 June 9 )
@FedFRASER