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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SEMES OF 0 0 * T S I i TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1A and B - Spot Exchange Rates, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3A and B - 3-Month Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Chart 5 - Call Money Rates Chart 6A and B - London: Euro-) Deposit Rates Chart 7A and B - New York - London: Yields on U.S. Dollar Funds Chart 8A and B - London: Covered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B - Interest Arbitrage: U.S.-Germany and U.S.-Switzerland Chart 11 - Interest Arbitrage: United States-Canada Chart 12A and B - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Stock Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, which was published under that title through December 31,1968. The changes in the format and order of the charts are explained in the Supplement to the series, which accompanied issue dated January 1, 1969. All series and their sources are fully described in a Supplement dated January 1, 1972. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Above 2 GERMAN MARK U.K. POUND rate against U.S. SWISS FRANC • I i i 1 i i 1 i i T DUTCH GUILDER 2 FRENCH FRANC rate against U.S. JAPANESE YEN I J 1972 1973 • . T 17/ SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent BELGIAN FRANC Central M J S M D J 1972 D S 1973 Ratio scale, U.S. cents 102 100 96 94 M J S 1970 D M J 1971 S D M J 1972 S D ft SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR May I I . 1971 - Weekly averages Dec 17. 197] Per cent Above par GERMANY NETHERLANDS FRANCE JAPAN Par U.S. MAY JUNE JULY SEPT. 1971 * Financial franc OCT. NOV. DEC -w> Chart I D SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST VS. DOLLAR May 11. 1 9 7 1 - Dec 17, 1971 BELGIUM UJC ITALY Par U.S. MAY JUMC JULY AUG. OCT. 1971 •For clarity the vertical scale is double that used in 1C MOV DEC 71 Chart 2A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.S. DOLLAR Weekly averages Per cent per annum CANADIAN DOLLAR U K POUND DISCOUNT- PREMIUM GERMAN MARK DISCOUNT- PREMIUM DUTCH GUILDER DISCOUNT— S D 1969 J S 1970 * Canadian Dollar Rate not supported by Bank of Canada * * No quotation D M J 1971 S D J 1972 S D 175 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent per annum ' ' I ' ' I ' ' I ' ' I ' ' I ' ' I ' ' I LU ' ' I ' 1 I ' ' I ' ' I ' ' I FRENCH FRANC DISCOUNT- 1 I I I I 11I 11 I I * Devaluation of the French franc from 4.94 to 5.55 for $1.00. * * No quotation 1 ' I '' i 1 ' I 12 epU 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum GERMAN MARK U.S. DOLLAR I • , I • • I • • I • • I • • I i • PTIT] I J 1971 No quotation. S D M J 1972 S D 197 Chart 38 3-MONTH FORWARD EXCHANGE-MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum PREMIUM SWISS FRANC FRENCH FRANC DISCOUNT - M J s D 1969 M J S 1970 * Devaluation of the French franc from 4.94 to 5 55 for $1.00 0 M J 1971 s D M J 1972 S 0 GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon fixings U.S. dollar equivalent per fine ounce - - - - / - / A/s r A V 4 rVv 1 1 M 1 1 1 1 J S 1 1 D 1 1 M 1969 1 1 1 1 J S 1970 i i D r f i i M 1 i i i i J 1971 S - i i i i D M i i J i i i i S 1972 D V ? CALL MONEY RATES DOLLAR FUNDS - i1 1 1 1EURO-OOUA * DEPOSITS CALL f ( n r E m i 6HT • - - ! 12 j i ! i •P 1 \ 4 JM A FEE i - | JJ1 1 - EUROl-OOLLAR OVER FEDERAL FUNDS 1 \M v V W \AJAA} — J C — > I 1 1 1 1 1 1 1 i ±_L_ EURO-CURRENCIES 1 1 1 1 1 1 1 . 1 i > 1 1 l 1 1 1 1 i_J— 12 EURO-SWISS-FRANC 1 i i 1 i i 11 J 1 1 Per cent per annum Weekly averages M : J W v w 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i ' ' 1' 1I S 1969 1 - May 10. 1971 - Changed to Overnight Euro $ Deposits. CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per 12 8 FRANCE 4 NETHERLANDS 0 8 JAPAN CANADA 4 0 12 GERMANY 8 U.K. 4 0 M 1969 1970 1971 t, Day-to-day Money; Netherlands. Call Money, weekly average. Japan, Unconditional Money; a. Day to day Loans, weekly average; Germany, Call Money; U.K., 2 day Local Authority Deposits 1972 Chart 6A LONDON: EURO DOLLAR DEPOSIT RATES Friday figures 1-MONTH 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 I I I I I 2 M J S D M 1969 J S 1970 • M a y 12/71-changed to Overnight Euro-Dollar Deposits * * J u l y . 1 - c h a n g e d to 7-Day Euro-Dollar D M J S 1971 O M J S 1972 D 1%^ Chart 6B LONDON: EURO DOLLAR DEPOSIT RATES Friday figures ) Per cent per annum f m U A V J y\ 6-MONTt h thJ \ to Jv \j\ A \ A 1 VKZfs-MONTH V 1 i i I i i l i i l i i M J S D r i 1i i 1ii M 1969 J 1970 S 1ii D 11 1111111111 M J S 1971 D \ 1 1 1 1 1 1 I I 111 M J S 1972 D Chart 7A NEW YORK-LONDON: YIELDS ON U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Wednesday figures Per cent per EURO DOLLAR DEPOSIT U S. CERTIFICATE OF DEPOSIT FAVOR EURODOLLAR DIFFERENTIAL EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT M J S 0 1969 M J 1970 S D M J 1971 s D M J 1972 S 0 TV1 NEW YORK-LONDON: COST OF U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES—PRIMARY MARKET Per cent per annum Wednesday figures EURO DOLLAR DEPOSIT ADJUSTED EURO-DOLLAR DEPOSIT U S. CERTIFICATE OF DEPOSIT ADJUSTED * EURO DOLLAR OVER U S. CERTIFICATE OF DEPOSIT ADJUSTED* 1 I I I i i I i i 1'I M J S D l ' 1'I M 1969 J 1I I I ' ' S 1970 * Adjusted for Reserve Requirement * * Adjusted for 1 0 * Marginal Reserve Requirement * * * Adjusted for 2 0 * Marginal Reserve Requirement D ' »I 'I M J I ' ' I 'I S 1971 D ' ' I ' ' I ' I I ' M J ' D 1972 Chart «A LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE AND EURO-DOLLAR RATES Friday figures Per cent per annum euro d o l l a r deposit hire purchase COVERED FAVOR HIRE PURCHASE + v \ y - an DIFFERENTIAL M J FAVOR EURO DOLLAR S D M 1969 J 1970 S 0 M J 1971 s D M J S D 1972 L Chart 8 8 LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO DOLLAR RATES Friday figures Par cent per annum EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT COVERED FAVOR LOCAL AUTHORITY - 7 Ay f •' V ' /] / J A Vv - FAVOR E U R O - D O U A R - DIFFERIENTIAL I I 1 1 M n N S i i 1i i 1ii 1 ii D S 1969 M J 1970 I I 1 II D M I I I 1I I J 1971 S D 1 11 1 1I 111 11 M J S 1972 D %%7 Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum 12 1 3 MONTH TREASURY B LL RATES 10 N J A u.k. l o c a l aut h o r t t y deposits* \ UNCOVERED a ^ J v^XA. y\jJ ^ r Vv \ \J% A x v v n e w york 1 1111 11111 1 m j s d 1969 * Plotted for comparison purposes /V/ ^ 111111111111 1 1111111111 ii m j s d m j s d m 1970 1971 11 j 1 1 1 1 1 1 j s o 1972 4 2 Chart 9 6 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum PREMIUM | RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I SPREAD IN FAVOR OF LONDON FORWARD RATE DISCOUNT FAVOR LONDON DIFFERENTIAL FAVOR NEW YORK M J S D 1969 M J 1970 S D M J 1971 S D M J 1972 S D 4 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Per cent per mnmmm Wednesday rates IN TERMS OF DM LOAN RATE EURODOLLAR COVERED DIFFERENTIAL M J S D FAVOR FRANKFURT M 1969 No quotation J 1970 S D M J 1971 S 0 M J 1972 $ O Chart 10B 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE Per cent per an Wednesday rates IN TERMS OF SWISS FRANCS 14 12 10 8 EURODOLLAR COVERED 6 4 2 SWISS DEPOSIT RATE i i I i i I i i I i i DIFFERENTIAL I i i I i i I i i I i i FAVOR ZURICH 0 2 + 0 2 4 6 FAVOR EURO DOLLAR I ' I I I I I » I I I - - N o quotation 8 Chart 11 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures Per cent per eimem M I ' ' I ' i I i i BILL RATES | II | I I I II II | I I | I I | I I CAN. FIN. CO. PAPER UNITED STATES TREASURY BILLS CANADIAN TREASURY BILLS BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR FORWARD RATE GROSS SPREAD IN R OF CANADA COVERED RATE DIFFERENTIALS FAVOR CANADA SURY BILLS FAVOR U S V%v^ FINANCE PAPER FAVOR U J . L iJ 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 Chart 12A SELECTED SHORT-TERM INTEREST RATES* FW C—I ##r — » • - - ermany - \ v / ~ V Iv \ l V n iA UJC U • r k l l f l I 1 I I I I I I f 1 1 11 1 f 1 I1I 1 I I 1 1 1 1 1I V1 I 1 1 1 1 1 1 1 - w - J# pan Vi • W / : 1 7 wcrf - \\ur v 111111111II canadaI 11111111111 1968 VA! s. Ax. I I 1 I I 1 I I 1 I II I 1 I I 1 I I 1 I I• 1 1 1 1 1 1 1 1 1 1 1970 *3-month treasury bill rates for all countries except Japan(Average rate on bank loans and discounts) and.Germany(lnterbank Loan Rate) r 1072 Chart 12B SELECTED SHORT-TERM INTEREST RATES * Per cent per EURO DOLLAR - LONDON SWITZERLAND 1968 1970 * S-mwth treasury bill rate for U.S., Switzerland-3-monttt deposit rat*. • • # month rate for.U.S. dollar deposits in London. 1972 LONG-TERM BOND YIELDS Weekly figures Per cent per enHHNHI 10 • 6 4 11 • 7 S 10 u j . corp. d o l l a r euro-bonds Monthly figures • a m bonds u j . corp. dm eurobonds 6 i i I i i 1 i i I i i 1 i i I i i I i i I i i 1 i i 1 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 i4 IBM 1969 1970 1971 1972 lew series lor SwUertawd starts 62-68, U.S. Corp. DeNar Euro-Bonds end U.S. Corp. DM Ewro-Bonds starts 12-70. Wee-Average yield el aN Garman PA. Bends begins 17-69 * New series F starts 12-71. CHART 14 INDUSTRIAL STOCK INDEXES 280 UNITED STATES 200 480 SWITZERLAND , ^ V 360 UNITED KINGDOM 240 480 JAPAN 360 GERMANY 240 CANADA 160 1969 1970 1971 * Japan index of 225 industrial and other stocks traded on Tokyo exchange. * * Japan index of all industrial and other stocks traded on the first section of the Tokyo Stock Exchange. 1972 H. 13 No. 561 Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since 4.n March 2. 197J 4.5 S. 7S A o r t l 6.0 Jan. 13. 1972 3.0 Feb. 25. 197: 4.0 D*c. 23. 1971 4.0 A r «.<i i n EEC.: Belgium France Germany Italy Netherlands L Switzerland 3.7S United Kingdom Canada Japan n 6. 1972 io: 7 A 5. 5 1AJ 4.5 T«n. S»pt. 15. 191 3.0 lulv 1. 6.0 Msrrh s.n 1 r 197: 1971 1972 1 0 71 1972 10. 1967 1071 5-25 M > . 24. 1971 4.75 Dec. 29. 1971 5.25 J u l y 28. 1971 A. 50 Ikf 6.75 MOV. 4.75 United States 11 1971 11. 1971 IV 2 LATEST FIGURES P L O T T E D ON T H E CHARTS Chart Panel Series Date 1A Upper Swiss franc U.K. pound French franc Japanese yen June 2 ii Lower IB Upper Lower 2A 26 Upper Lower 3B 4 Upper Middle Lower 5B n „ H Actual r a t e German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Upper Lower " ii H -O.OIO 40.260 +2.270 +1.090 +2.190 +0.190 101.86 +1.460 +1.250 ii H ii ii +1.24 +1.93 -0.61 +2.04 -1.79 -0.33 n.a. n n " +1.57 40.32 +1.96 40.21 Gold price, U.S. dollar per ounce June 2 59.10 Overnight Euro-$ deposits Federal Funds Differential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Money U.K., 2-day Local Author. Deps. Canada, Day-to-day Loans France, Day-to-Day Money Germany, Call Money Netherlands, Call Money May 31 H German mark U.S. dollar Swiss franc French franc 3A 5A Belgian franc Italian lire Canadian dollar German mark Dutch guilder " Rate June 2 " June 2 ii Mav 26 May 19 Mav 31 Mav 26 T M n» ? Mav 19 3.67 4.3f -0.71 2.85 2.75 4. 75 4. 75 3.70 4. 75 4.00 3.30 IV - 3 Chart Panel 6A Series Date Euro-) 7-Day 6B Rate June 2 4.44 Euro-) 3-month Rate 4.69 Upper Euro-) 3-month Deposits Lower Differential 5.25 May 31 U.S. Certificate of Deposits 7B Upper 4.35 Euro ) 3-month Deposits 4.62 5.78 U.S. Certificate of Deposits (Adj.) Lower Differential: on Adj. Euro ) Deposits Upper Euro-) 3-month Deposits 4.61 +1.17 on Unadj. Euro-) Deposits +0.01 May 19 Hire Purchase Deposits (covered) 86 Lower Differential Upper Euro ) 3-month Deposits 4.43 4.81 4.50 Differential U.S. Treasury 6ill rate 9A -0.31 June 2 U.K. Treasury 6ill rate Local Authority Deposit (uncovered) 96 Upper Spread (+= favor London) 3-month Forward Pound Lower Net Incentive (+= favor London) 4.81 -0.38 Local Authority Deposits (covered) Lower 4.62 +0.27 Euro ) 3-month Deposits (Adj.) 8A 4.06 Euro-* 1-month Rate Euro-) 6-month Rate 7A Rate 3.77 4.34 Mev 19 4.88 40.57 -0.3* 40.18 %<5° IV - 4 Chart Panel 10A Upper Series — Euro-S Deposits (covered) Date May 31 German Interbank Loan rate 10B Lower Differential Upper Euro-) Deposits (covered) 11 Differential Upper Canadian Finance Paper +1.02 2.59 1.50p -1.09 June 2 U.S. Treasury Bill rate 3.65 U.S. Prime Finance paper (not plotted) 12A 6.13 3.77 Canadian Treasury Bill rate Second 3.36 4.38 Swiss Deposit rate Lower Rale 4.38 Bill rate differential -0.12 Forward Canadian dollar -1.80 Third Net incentive on bills -1.92 Bottom Net incentive on Finance Paper +0.05 Upper U.K. Treasury Bill rate June 2 4.34 German Interbank Loan rate May 31 4.38 Japanese Average rate March 7.273 Canadian Treasury Bill rate June 2 3.65 U.S. Treasury Bill rate Lower . 12B > 3.77 U.S. Treasury Bill rate H Euro-S Deposits " 4.69 Swiss 3-month Deposit rate " 1.50p " 3.77 U.S. Treasury Bill rate 3.77 * % IV-5 Chart Panel Series Date 13 Upper Netherlands May 12 Mav 19 6.85 6.80 Canada May 31 7.06 „ United States Switzerland Middle Rate 5.41 May 19 * Germany United Kingdom 4.97 Mav 15 7.83 May 26 9.33 / Lower U.S. Corp. Dollar Euro-bonds s e r i e s ! U.S. Corp. DM Euro-bonds „ U.S. Corp. Aaa bonds 14 Upper Switzerland ^ 26 . United States United Kingdom Canada Lower ** Japan United States 8.11 it 6.97 ii Germany Middle April ^ 26 _ June 2 7.30 462.0 - 456.6 Mav 23 309.6 May 26 223.85 June 2 298.93 - 289.57 May 25 257.06 May 13 569.06 May 26 223.85 * New - Average yield of ALL German Public Authorities bonds made as of banking key days. ** Beginning week ended September 5, 1970, the Japanese index plotted is that of all Industrial and other stocks on the First Section of the Tokyo Stock Exchange.