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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 GOVERNORS H . 13 No - 356 , June 26, 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 NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS N E W Y O R K - L O N D O N : YIELDS O N U . S . DOLLAR F U N D S 3 - M O N T H D O L L A R DEPOSIT RATES ^ EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T EURO D O L L A R OVER 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 EURO-DOLLAR DEPOSITS F E D E R A L FUMDS T E U R 6 - M L L A R OVER F E D E R A L F U N D S Mar. lie. Sept. Dee. Mar. 1115 JMH. 1916 Sept. Dec. Mar. Jun. 1817 Sept. Dec. Mar. Jem. 111! Sept. Dec. LONDON: YIELDS EURO-DOLLAR FOR U . S . D O L L A R INVESTORS O N 3-MONTH FUNDS D E P O S I T RATES 3 0 DAY CALL 1 8 0 DAY 9 0 DAY M J 1965 S B M J S 1916 I M J S 1967 B I I J S 196# O LONDON: HIRE YIELDS PURCHASE FOE AND U.S. LOCAL DOLLAR INVESTORS AUTHORITY DEPOSIT O N 3 - M O N T H RATES FUNDS (covered) EURO-DOLLAR DEPOSIT. HIRE P U R C H A S E PURCHASE FAVOR DIFFERENTIAL FAVOR E U R O D O L L A R 8 — r EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT 1 — FAVOR LOCAL A U T H O R I T Y DIFFERENTIAL 1S65 F*#R ISIS 1187 ETFTL-MLLAW 111! 5 I INTEREST ARBITRAGE: FRANKFURT FRANKFURT/LONDON, INTERBANK LOAN RATE VS. Z U R I C H / L O N D O N L O N D O N EURO DOLLAR RATE 1 (COVERED) IN TERMS OF DM EURO-DOLLAR INTERBANK ! ! 1 DIFFERENTIAL ! LOAN RATE ! 1 1 FAVOR FRANKFURT | I W j y x I I i i ZURICH i i l I DEPOSIT ! RATE 1 i VS. ! M L O N D O N ! i i 1 EURO i i r i DOLLAR i I r T ^ RATE i | M i l „A ^ l ! V ; 1 FAVOR EURODOLLAR 1 1 1 1 1 ! 1 ! (COVERED) IN TERMS OF SWISS FRANCS EURO-DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL N _L_L : PRICI o r M _L_L OOLD IN _LJ_ I O N D O N Market closed Merck 15-April 1, I960. -L_L I I I I FAVOR E U I 6 - I I L L A * I I I I I I I I S do'tar equivalent t 0 u~ INTERS! ARBITRAGE, 3-MONTH UNITED TREASURY BILL STATES /CANADA RATES CAN. FIN. CO. P A P E R UNITED STATES CANADA BILL RATE DIFFERENTIAL AND FORWARD CANADIAN SPREAD 1 DOLLAR I N F A V O R OF C A N A D A FORWARD 'V/- RATE DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET TREASURY PRIME INCENTIVES) BILLS FINANCE PAPER F A V O R U.S. FAVOR C A N A D A FAVOR U.S. 1965 1966 1967 1166 2 n INTEREST ARBITRAGE, NEW 3-MONTH YORK/LONDON 10 TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW 1965 1966 YORK 1967 196# $ 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 T IN FAVOR OF T LONDON 2 0 IN FAVOR OF N E W YORK 2 4 I RATE DIFFERENTIAL WITH FORWARD 1965 1966 EXCHANGE COVER (NET 1IS7 • INCENTIVE) ISM V SHORT-TERM INTEREST RATES 8 EURO - t DOLLAR - LONDON t f A 7 6 U K 5 U.S. ASWITZERLAND 4 3 2 9 8 JAPAN 7 6 CANADA I 5 U S 4 GERMANY 3 2 1964 1915 1968 >3-monlh treasury bill rales for all countries except Japan (Average rate on bank loans and discounts) 3-mefith rote tor US Cellar deposits in London 1967 1111 |6 LONG-TERM BOND YIELDS NETHERLANDS CANADA U.S. SWITZERLAND 9 GERMANY EURODOLLAR BONDS 8 U.S. S. 1964 1815 EURO DOLLAR CORP. IMS Av#roge of yields *or four foreign government dollar bonds quoted in London New series for Switzerland starts 3 3 67 Aaa BONDS BONDS 1967 1968 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 / | h-rf GERMAN MARK i U.K. STERLING B E L G I A N FRANC DUTCH GUILDER FRENCH FRANC I CANADIAN DOLLAR I T A L I A N LIRA J A P A N E S E YEN 1965 1966 * Devaluation of the pound sterling from 52 80 to $2 40 1167 1111 3 - M O N T H F O R W A R D E X C H A N G E RATES AGAINST U.S. D O L L A R S — N E W YORK Friday Figures GERMAN r " l J \ l r C SWISS FRANC P O UND S T E R L I N G Vx i p!sc.ourTT 11 i i i PREMIUM* DUTCH GUILDER FRENCH F R A N C C A N A D I A N DOLLAR P SC T ! I I | '| | | ! I I i M ! I A G A I N S T POUND STERLING — L O N D O N j PRE*HUM* i\ 1 i I GER M A N M:A R K [ SWM S S FRI A N C A | ! , i i M 1 1 I IMS 1 1 S 1 1 # / j A , / V U.S. DOLLAR ! i j M i l l - I l l M J 1967 m . i f j l !• S ! ' M T I t T M 1 1 1 1 111! 1 1 1 1 1 1 1 i m i i J j $ i INDUS' 3*0 320 280 240 SWITZERLAND 200 U.S. GERMANY 160 U.K. 120 360 320 280 JAPAN 240 CANADA 200 U.S. 160 1965 • • • 1966 Swin lank Cerperefien industrial Hock index Je»en: index of 225 industrial and fther stocks traded on the Tokyo exchange 1967 196# H. 13 No. 356 II.a Latest Figures Plotted in H.13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, Euro-$ deposit 6.75 U.S. cartif. of deposit Lower Panels Chart 4 (Friday, June 19 ) Treasury bills ; Canada 6.08 (Wednesday, June 19 June 21 ) 6.46 U.S. ) June 2 6, 1968. 5.32 Spread favor Canada +1. 14 Call Euro-$ deposit 6. 36 Forward Canadian dollar -0.84 Federal Funds 6. 22 Net incentive (Canada +) +0.30 Canadian Finance paper Chart 2 (Friday, June 21 ) 7.00 Chart 5 (Friday, June 21 ) Upper Panel - Euro-$ deposits: Call 30-day 6.50 90-day 180-day Treasury bills : U.K. 7. 03 U.S. 5.32 6.88 6.94 Middle Panel Spread favor U.K. +1. 71 Hire-purchase paper n. a. U.K. local authority deposit Euro-$ deposit n. a. Chart 6 (Friday, 8. 06 June 21 ) Lower Panel Treasury bills: U.S. Local-authority deposit Euro-$ deposit I. U.K. 7.03 Canada 6.46 n.a. Chart 3 Upper panel (Period: Interbank Loan 5.32 n.a. June 16-23 ) (mid-point) 3.63 (average) 3.52 Euro-$ deposits Interbank loan rate (German) June 16-23 ) ( 3.63 Euro-$ deposit (London) 6. 88 Zurich 3-month deposit Lower Panel (date May 15 ) (Date: Zurich 3-month deposit 3.25 Euro-$ rate (covered) 4.51 May 15 ) 25 ) 7.52 Japan Composite rate (Date: II. Price of gold (Friday, June 21 ) 41.07 April 30 H. 13 N o . 356 II. b - Chart U.S. G o v ' t . (Wed., June 7 Chart 9 .Tune 19 ) (Friday, 5.17 U.K. W a r L o a n (Thurs., J u n e 20) 7.53 A g a i n s t U.S. d o l l a r s : German Fed. (Fri., Swiss C o n f e d . Swiss f r a n c s +2.37 D u t c h Glds.. + 1 . 1 6 ) n. a. German marks +3.30 Fr. Francs -3.48 (Wed. , j u n e 19) 6. 67 £ Sterling -4.29 Can. -0.84 (Friday,' June 14 (Fri.,> June 21 U.S. E u r o - b o n d s ) 6.33 14 Netherlands Gov't. Euro-$ bonds J u n e 21. ) June (Fri, Canadian Gov't. 26, 1968. ( M a v 31 A g a i n s t pound sterling: +5.72 ) 6.48 Swiss francs ) 7.79 U.S. d o l l a r s ) 7.54 ) 6.27 $ Ger. m a r k s +7. 66 +3.57 Chart 10 U. S. C o r p o r a t e Aaa ( M a y 31 U.S. ( Chart 3 (Friday, J u n e 21 ) ) J a p a n ( June 21 ) n.a U.K. ) 267.3 Swiss f r a n c s +1.52 D u t c h Glds. -0.03 German marks +0.04 Can. +0.41 Switzerland U.K. -0.70 It. L i r e +0. 0 4 Germany -0.46 Canada £ Ster. $ B e l g i a n f r a n c s + 0 . 22 Jap. Y e n s F r e n c h francs 222. 1 June 21 (Fri., ( ( J u n e 21 (Fri,. June 21 ) ) 253.4 J u n e 13 ) 201.8 -0.74 F o r d e s c r i p t i o n s and sources of data, see Special Supplement N o . dated M a r c h 27, 1968. 339. 7 M a y 31 343-S
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