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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 ' A ( j a J K f / ^ A l A ^ " " : v > v BOA* ^ H. 13 No - 355 June 19, 1968. CAPITAL MARKET DEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 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: Frai kfurt/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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLAR FUNDS 3 - M O N T H D O L L A R D E P O S I T RATES EURO-DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT CALL EURO-DOLLAR D E P O S I T RATE V S . U . S . F E D E R A L F U N D S RATE CALL EURO DOLLAR DEPOSITS FEDERAL FUNDS EURODOLLAR OVER FEDERAL FUNDS Sept. Mar. Dec. Mar. 1115 Jan. 1111 Sept. Dec. Mar. JUR. 1117 Sent. Dec. Mar. Jan. 1HI Sept. Bee. 3 LONDON: YIELDS EURO-DOLLAR FOR U . S . D O L L A E DEPOSIT INVESTORS O N 3-MONTH FUNDS RATES I.. ' Friday figures ' I i ! I I ! I I I i ; i : I ! ; I ! i i I : A ! : I M I i ! I . k ' fj : 30 DAY J " J i A t A A . ; a r V CALL ' I I i I I I I I I \ I i i i ! I i i i i i i i i I ; i I i i I I : I I I I i I I I I I I I I i . . |. | A / " r\ J % -.A I A . Y SO DAY ! i I I . i i I I H i II I i S D i i M 1165 i i M J HIS $ I I I I I I I J 1SS7 i i II $ I i i M i i J 1S6S i i S B 4 LONDON: YIELDS FOR HIRE P U R C H A S E A N D U.S. LOCAL DOLLAR INVESTORS O N AUTHORITY DEPOSIT 3-MONTH RATES FUNDS (covered) EURO D O L L A R D E P O S I T : HIRE P U R C H A S E FAVOR HIRE PURCHASE DIFFERENTIAL j FAVOR EURODOLLAR 8 EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT DIFFERENTIAL 1185 F*#R 1111 1117 EUlO-QtLLAR 111! 5 I INTEREST ARBITRAGE: F R A N K F U R T / L O N D O N , FRANKFURT INTERBANK LOAN RATE V S . ZURICH/LONDON LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF DM EURO-DOLLAR INTERBANK LOAN RATE FAVOR FRANKFURT FAVOR EURODOLLAR I I I I I l I I i i ZURICH DEPOSIT RATE V S . L O N D O N EURO-DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS EURO-DOLLAR SWISS DEPOSIT RATE DIFFERENTIAL •/ / FAVOR EURO DOLLAR I I I, I I I 1 1 H PRICE OF e O L B IN LQNION 5.5 49.0 5.4 43.1 :.3 41# ;.2 311 35.1 37# 5.0 _L_1_ • I S O 1115 • Merkel cleied March lJ-A»ril 1, 1»M 35.#: _LJ_ i 111! m i INTEIST ARBITRAGE, Friday figures 3-MONTH TREASURY UNITED BILL STATES / C A N A D A - Per cent per onnum RATES CAN. F I N . CO. P A P E R UNITED STATES CANADA BILL RATE T DIFFERENTIAL AND FORWARD CANADIAN DOLLAR PREMIUM S P R E A D IN- F A V O R OF C A N A D A -UFORWARD RATE 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CANADA , TREASURY BILLS PRIME FINANCE PAPER ; FAVOR U.S. FAVOR CANADA IMS till 1917 111! 1 2 1 INTEREST A R 1 I T R A G E , NEW 3-MONTH YORK/LONDON TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS A / M v U ! LONDON NEW 1965 1966 YORK 1967 I 3 INTEREST RATE ARBITRAGE, DIFFERENTIAL NEW AND YORK/LONDON 3-MONTH FORWARD 4 STERLING SPREAD IN FAVOR OF L O N D O N 2 PREMIUM 0 DISCOUNT FORWARD RATE 2 4 6 8 10 IN FAVOR OF L O N D O N IN F A V O R OF N E W 2 j 0 YORK 2 4 I RATE DIFFERENTIAL WITH FORWARD 1115 111! EXCHANGE COVER (NET 1117 INCENTIVE) • 11*1 • 4 S H O R T - T E R M I N T E R E S T RATES EURO DOLLAR - LONDON + Vus- ^ /^M; SWITZERLAND - 9 JAPAN CANADA I f V 1114 IMS 1111 meelb Ireeswry bill relet fer eW ceentriei emcepl Japan (Average rate on bank loam and diicounli) Swilierlend (3-weefk iepent rele) omW Germany 3-eewih rele ler US teller depeiili in lenden Jlnlerbonk Loan lale) 1167 1111 L O N G - T E R M B O N D YIELDS 8 NETHERLANDS 7 CANADA 6 U.S. 5 SWITZERLAND 4 3 9 8 GERMANY U.K. 7 EURO-DOLLAR BONDS 6 5 U.S. EURO DOLLAR BONDS U.S. CORP. Aaa BONDS 1984 1965 New series far Germany starts 7 9 65 * • New series far Switiarland starts 3 3-67 • * New series far Netherlands starts 17 66 1986 1967 1916 S P O T E X C H A N G E RATES - M A J O R C U R R E N C I E S A G A I N S T U . S . D O L L A R SWISS FRANC / T' V ^ GERMAN M A R K - 4 '\ U.K. STERLING BELGIAN FRANC DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR ITALIAN LIRA Aa/^ JAPANESE YEN IMS * Devaluation of the pound sterling from $2 80 to $2 40 111! 1117 IMS 3-MONTH AGAINST FORWARD EXCHANGE U.S. DOLLARS — N E W RATES YORK PREMIUM* GERMAN MARK AO SWISS FRANC POUND STERLING DISCOUNT- DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNT- A G A I N ST P O U N D STERLING — L O N D O N 10 GERMAN MARK SWISS FRANC U.S. DOLLAR RISCtNNT- #05 1117 111! 1110 INDUSTRIAL STOCK INDICES 320 280 240 SWITZERLAND 200 U.S. GERMANY U.K. 120 360 320 280 JAPAN 241 CANADA 200 U.S. Ill 121 1815 • Swiis lank Cerperelie* iedvilriel sleek index J i m * iede* ef 225 i»<..iriel emW ether .let 1888 1867 INI H. 13 No. 355 II.a Latest Figures Plotted in H.13 Chart Series» 1968 (all figures per cent per annum) Chart 1 (Wednesday, Upper Panels June 12 Euro-$ deposit 6. 68 U.S. cartif. of deposit 6.10 Lower Panels (Wednesday, June 12 Chart 4 (Friday, June 14 \ ) Treasury bills; Canada S# ) June 19, 1968. 6.57 5. 64 Spread favor Canada +p.93 Call Euro-$ deposit 6. 23 Forward Canadian dollar -p.91 Federal Funds 6. 20 Net incentive (Canada +) +0.02 Canadian Finance paper Chart 2 (Friday, June 14 ^ Chart 5 <Frlday> -Tune 14 Upper Panel - Euro-$ deposits: Call 30-day 6.25 6.81 90-day 180-day 6. f 6.94 Middle Panel Treasury bills; U.K. 7. QQ U. S. 5. 64 Spread favor U.K. Hire-purchase paper 2.74 Euro-$ deposit Euro-$ deposit I. June ft-15 ) Interbank Loan (mid-point) 3.72 Euro-$ deposits Lower Panel (date (average) 3.61 5.64 U.K. 7.00 Canada 6.57 May 15 ) 3.25 Euro-$ rate (covered) 4.51 Price of gold (Friday, .Tune 14 41.41 ) Interbank loan rate (German) ( June 8-15 ) 3.72 Euro- $ deposit (London) 6. 88 Zurich 3-month deposit Zurich 3-month deposit II. Treasury bills; U.S. &.gj Chart 3 Upper panel (Period: g. 06 Chart 6 (Friday, June 14 ) Lower Panel 2. 31 ) +1. 36 U.K. local authority deposit gi Local-authority deposit 7.12 (Date: May 15 ) 3. 25 ) 7.52 Japan Composite rate (Date: April 30 H. 13 No. 355 II. b June 19, 1968. Chart 9/ Chart 7 U. S. Gov't.(Wed. , June 12 ) (Friday, Julie 1 4 ) 5.22 J\ U.K. War Loan (Thurs. . June 13) 7.43 Against U.S. dollars: German Fed. (Fri,, June 14 ) Swiss francs +2. 37 Dutch Glds. 4-1. 38 Swiss Confed. (Fri., May 24 ) German marks +3•31 Fr. Francs Canadian Gov't. (Wed. , June 12) 6. 88 £ Sterling Can. $ Netherlands Gov't. Against pound sterling: N.A. 4.54 ~4.45 May 31 (Friday, June 7 6.49 ) 6.46 Swiss francs +5.88 Euro-$ bonds (Fri., June 14 ) 7.74 U.S. dollars +3.57 U.S. Euro-bonds ( ) 7.54 May 31 U. S. Corporate Aaa ( May 31 Chart 8 (Friday, June 14 ) 6.27 Swiss francs ^ Dutch Glds. +0. 02 German marks ^ Can. $ U.K. £ Ster. - ° - 6Q It. Lire Belgian francs+0.44 Jap. Yens -0.91 Ger. marks June 14 June 14 U.K. (Fri. , June 14 ) 225. 3 ) 266. 5 ) 260.4 +0- 30 Switzerland +0.22 Germany ( May 31 (Fri,. June 14 ) ) 253.4 -0.54 Canada ( June 6 ) 197.9 French francs -0.74 For descriptions and sources of data, see Special Supplement No. 343-S dated March 27, 1968. +7.82 Chart 10 U. S. ( Japan ( ) N.A. 343.1
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