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DIVISION O F I N T E R N A T I O N A L F I N A N C E H. 13 No. 291 BOARD OF GOVERNOR* March 22, 1967, /. CAPITAL MARKET DEVELOPMENTS ABROAD I, II. Ten.Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1967 Ten Charts Chart 1 Chart 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 Financial Markets Abroad New York, London, Montreal: Yields for UcS. Dollar Investors on 3-month Funds London• Yields for U.S. Dollar Investors on 3-month Funds Interest Arbitrage, Frankfurt/London, Zurich/London Interest Arbitrage; New rork/Canada Interest Arbitrage: New York/London Short term Bond Yields Long-term Bond Yields Spot Exchange Rates --Major Currencies Against UcS, Dollar 3 month Forward Exchange Rates Industrial Stock Ir.dicc-s Europe and British Commonwealth Section. OIFICIAL USE ONLY (Decontrolled after six months) NEW YORK, L O N D O N , MONTREAL: YIELDS FOR U . S . D O L L A R I N V E S T O R S O N 3 - M O N T H F U N D S DOLLAR DEPOSIT Wcdneidoy figurel RATES: N E W Y O R K - L O N D O N , EURO DOLLAR D E P O S I T — U . S . C E R T I F I C A T E OF D E P O S I T E U R O 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 i l i FINANCE CO. PAPER | i RATES ( c o v e r e d ) : 1 l j i r QUO 1 I I I ! ED I N N E W - l l i l l 1 \l\ i i i YORK U.K. HIRE P U R C H A S E CANADIAN FINANCE COMPANY ! U.S. FINANCE COMPANY Ma. Jun. Sept. 1965 Dic.l Mar." Hun. 1966 Sept. Dec. ^ Mar ^_ (1967 Jun - LONDON: YIELDS EURO-DOLLAR FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES 3 0 DAY 1 8 0 DAY 9 0 DAY CALL HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES ( red HIRE PURCHASE EURO-DOLLAR DEPOSIT FAVOR EURODOLLAR ! EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL FAVOR 1965 1966 1967 AUTHORITY EURODOLLAR j M I INTEREST A R B I T R A G E : 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 ( C O V E R E D , IN INTERBANK LOAN RATE TERMS OF DM EURO-DOLLAR FAVOR FRANKFURT DIFFERENTIAL j FAVOR E U R O D O L L A R ZURICH DEPOSIT RATE VS. LONDON E U R d D O L L A R RATE ( C O V E R E D ) IN T E R M S OF S W I S S FRANCS ; EURO-DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL FAVOR EURO-DOLLAR n ; 35.3 PRICE OF G O L D IN L O N D O N 35.0 1965 1966 1967 INTEREST ARBITRAGE, UNITED STATES/CANADA 7 C A N . F I N . CO. P A P E R CANADA UNITED STATES 3 BILL RATE DIFFERENTIAL A N D F O R W A R D C A N A D I A N DOLLAR S P R E A D IN F A V O R OF C A N A D A PREMIUM I ' FORWARD RATE 3 - M O N T H C O V E R E D RATE D I F F E R E N T I A L S (NET I N C E N T I V E S ) FAVOR CANADA PRIME FINANCE PAPER FAVOR U . S . FAVOR CANADA TREASURY BILLS FAVOR U.S S 1964 1965 - 1966 1967 : ^ 1 <0 INTEREST A R B I T R A G E , 3 -MONTH TREASURY NEW YORK/LONDON BILL RATES U.K. LOCAL AUTHORITY DEPOSITS; LONDON I /V u RATE NEW YORK DIFFERENTIAL AND 3-MONTH FORWARD STERLING I . ! T M S P R E A D IN F A V O f ! O F L O N D O N PREMIUM DISCOUNT FORWARD RATE - I / I DIFFERENTIAL WITH j y _ w : : RATE ^ FORWARD i : ; i E X C H A N G E COVER ! (NET INCENTIVE) 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 I I \ <>,, , SHORT-TERM INTEREST RATES* U.K. E U R O D O L L A R - LONDON U.S. SWITZERLAND JAPAN GERMANY CANADA U.S. — 1962 l— : 1963 1964 1965 _ j 1966 2 4 LONG-TERM BOND YIELDS NETHERLANDS CANADA SWITZERLAND ! GERMANY EURO-DOLLAR BONDS' 1963 1964 1965 1967 <\ SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC GERMAN MARK U.K. STERLING FRENCH FRANC BELGIAN FRANC DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA J A P A N E S E YEN M 1965 1966 1967 J v> 3-MONTH AGAINST FORWARD U.S. IXCHANOl DOLLARS — N E W RATES YOIK GERMAN MARK SWISS FRANC DISCOUNT PREMIUM DUTCH GUILDER j FRENCH FRANC • CANADIAN DOLLAR ! AGAINST Fndoy figures POUND DISCOUNT STERLING — L O N D O N SWISS FRANC V/Y, GERMAN MARK U.S. DOLLAR 1964 w INDUSTRIAL STOCK INDICES ,B , 0 0 — — | 360 1 j 320 : i 280 SWITZERLAND GERMANY > 120 360 320 280 JAPAN 240 200 CANADA 160 j 120 1964 1965 1966 1967 V * . H. 13 No. 291 11. L a t e s t F i g u r e s P l o t t e d i n H.13 Chart Series, 1967 ( a l l f i g u r e s per c e n t per annum) Chart 1 (Wednesday, Upper P a n e l March 15- Chart 5 ( F r i d a y , March 17) ) Euro-$ d e p o s i t \ m U.S. c e r t i f . of d e p o s i t ^ 01 Lower P a n e l (Friday, ) March 17 March 22, 1967 Treasury b i l l s : U.K. U.S. 5- 55 4,21 + L 34 Spread f a v o r U.K. - 0c 70 Forward pound F i n a n c e c o . paper: U.S. Canada H i r e - p u r c h a s e p a p e r , U.K. 5. 00 5,21 i + 0, 64 N e t i n c e n t i v e (U.K. + ) Chart 6 (Friday.March 17 ) Chart 2 ( F r i d a y , March 17 ) Treasury b i l l s : Euro-$ d e p o s i t s : U.S. U.K. Canada 4.21 5, 55 4o 12 5 38 5. 58 I n t e r b a n k l o a n r a t e (German) 5, 12 H i r e - p u r c h a s e paper 5 70 Euro-$ d e p o s i t (London) 5.38 Local-authority deposit 5.58 Z u r i c h 3-month d e p o s i t ( D a t e : February 15 Japan c o m p o s i t r a t e (Date: Nov, 30 Call 30-day Upper P a n e l 90-day 180-day 5,18 5.50 Chart 3 ( P e r i o d : March 8-15 Interbank loan (mid-point) ) ? U Euro-$ d e p o s i t ( a v e r a g e ) Lower P a n e l (Date: February 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, March 10 ) 4, .50 3 5 154 Treasury b i l l s : Canada U.S. Spread f a v o r Canada Forward Canadian $ Net i n c e n t i v e (Canada + ) Canadian finance paper ) 7.39 (Wed. , March 15 ) 4.46 U.K. War Loan (Thurs.,March 16) 6.47 German Fed. ( F r i . , Marvh 17 S w i s s Confed. ( F r i . ,Mar c h 17 Canadian G o v ' t . Chart 4 ( F r i d a y , March 17) 4.50 Chart 7 U.S. G o v ' t . ) ) ) ) (Wed., March 8) 7. 11 4.26 5= 51 N e t h e r l a n d s G o v ' t , p e r p e t u a l 3% ( F r i d a y , Mnrch 3 ) 5 66 4 12 4-21 -009 Euro-$ bonds (Fri..March 17 6.30 t0 22 For descriptions and sources of dat a, see special supplement to H.13, Number 239, March 16, 1966. .+0 13 , 50 )
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