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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRES & THE US. TABLE OF GOMTEftfTS PART I. EXCHANGE RATES AMD GOLD PRICES Chart 1A and e - Spot Exchange Rales, Mak* Curacies agaiwst U.S. Dollar Chart 2A and 6 - 3-Monlh Foiward Exchange Rales, Major Curacies agaiwst U.S. Dollar Chart 3A and B - 3-Moelh Fomard Exchange Rales, Major Currencies against U.K. Pound Chart 4 - Gold Price MI London PART II. SNORT TERN INTEREST RATES Charts - Call Honey Rales Chart 6A and 6 - London: Euro-5 Deposit Rales Chart 7A and B - Hew York - London: Yields on U.S. Dollar funds Chart 8A and B - London: Cowered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United Stales-United Kingdom Chart 10A and B - Interest Arbitrage: U.S.-Gerwany and U.S.-Switzerland Chart 11 - Interest Afbitrage: United Stales-Canada Chart 12A and B - Selected Short-term Interest Rales PART III. LONG-TERM INTEREST RATES AMD STOCK INDICES Chart 13 Chart 14 - Long-Tern, 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, •rtiich was published under that title through December 31,1%# The changes in the taw* and order of fee charts are explained M Ibe S*p*ewent to the series, which arrowpanted issue dated January 1 , 1 W . All series and their sources ace felly described in a Supplement dated January 1,1972. SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent GERMAN MARK DUTCH GUILDER FRENCH FRANC JAPANESE YEN /DUTCH GUiLDUt M J S D 1972 * Pound floated J u r e 23 1972 * * Swiss franc floated January 23. 1973 See separate chart mmm Japanese Yen floated February 13, 1973 Digitized *for * * * FRASER Based on new Central Rate M J 1973 S D Chart 16a SPOT EXCHANGE HATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Meekly averages Ratio s c a l e , U.S. J Swiss franc Swiss Franc floated January 23# 1973 / 1973 197U 4 Cfcart 18 S F o r f x c h i h i c f «ATE - HAJOB RMio sc*le, U S 260 240 I I 1 I I I 1 1 1 I I M j S D I 1 i I I I 1 1 1 I I M J S O 1970 1071 * * * Italian Lira floated February 13, 1973. * * * * Based on new Central Rate M J S 1072 O M J S 1S73 D SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR May 11, 1971 - Dec 17, 197) Weekly averages Per cent Per US MAY JUNE JULY OCT AUG 1971 * Financial franc DEC 1 Ctert ID SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. OOiiAR 11. 1971- Dec 17 1971 UJL ITilLV tfJL ITALY MAY JUNE StfT AUG. 1*71 • f o r clarity the »eit«al scale « tfottbie ttwt used * 1C OCT. DEC. 3-MONTH FORWARD EXCHANGE - MAJOR CURREftftCES AGAMIST US- DOLLAR M ] 1M M CANAOMM DOLLAR ILK.POUWD DISCOUNT PREMIUM < DUTCH GUILDER - DISCOUNT - , ' I ! 1970 1971 Canadian Dollar Rate not supported by Bank of Canada 1972 1*73 3-MONTH FORWARD EXCHANGE - MAJOR CURREWCES A6AWST U J . DOLLAR Weekly averages Per cent pe< »« 12 PREMIUM < f*E#CW FftAMC S 4 + 0 4 PREMIUM < SWISS HUWC 4 + 0 DISCOUNT - J 1 1970 1971 1972 1973 4 Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJL POUND Friday figures Per cent per annum • 1 : PREMIUM * - 1 ! 1 1 1 - - - - GBHMM N M W i I 1 n A/JI M liT\ / A i - L n i v l u -S D O L U U t - - DISCOUNT - I i J S D 1970 M — J 1971 S — i D M J S 1972 D M J l l , S 1S73 , , D Chart 36 Friday figures DISCOUNT w C*wt 4 I's a i « f a # e of ahereooei luungs 00 50 s D 1970 M J 1071 S D M J 1072 S 0 M J 1071 s 0 Chart 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per annum OVERNIGHT EURO-DOLLAR DEPOSITS CALL EURO-DOLLAR DEPOSITS FEDERAL FUNDS DIFFERENTIAL \ r FAV0R | | EURO-DOLLAR OVER g FEDERAL FUNDS 1 J[/iU 1 ) M L M I i 1 i 1 ! : EURO-DOLLAR 1 I I 1 ! 1 ! II FAVOR FEDERAL FUNDS j I 1 ; 1 , ! i 1 i 1 i ! ! 1 i ! EURO-CURRENCIES Weekly averages Per cent per annum EURO-SWISS FRANC J 1970 1971 1972 1973 s D Chart 58 CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures - Per cent per - v . . FRANCE y y - y j - to •"V.VrKn ETMEHUU 1 1 : 1 1 1 1 i i 1 1 ! ! 11 S D 1970 D 1971 M S 1 i ; ! i i D 1972 France. Day to day Money Netherlands, Call Money, weekly average Japan, Unconditional Money. Canada. Day-to-day Loans » e e * ' y average. Germany. Call Money i , 1 M U K , 2 day Local Authority Deposits S 1973 0 LOUDON: EURO DOLLAR DEPOSIT RATES Friday figures Per cent per annum i i i i I i i I i i 1 \ y* fl 1 HI - 1 a - - 1 ! 1 I i 1 1 1 1 II W J S D 1970 1 JJ 1111 1111 W J S D 1*71 * May 12/71—changed to Overnight Euro-Dollar Deposits * * July 1—changed to 7-Day Euro-Dollar 1 1 W 1 1 1 1 1 1 1 1 1.. 1 J .1 1 1 j 1 1 1 1 1 J S 1*72 D W J S 1*73 D 2 \W Chart 66 L O t t O O * B S a C M X H l A e DEPOSIT r a t e s Friday figures Per cert per * * * * * ! - - 1 - - / v \ L / V \ j * \ mourn ^ - - 1 1 1 1 1 1 1 1 1 1 1 1970 i i 1 i i 1j J 1 i i I I 1 i ; 1 M 1 M 1i l 1 i i 1 i i i j j . NEW YORK-LONDON: YIELDS ON US DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET Per cent per annum Wednesday figures US. CERTIFICATE OF DEPOSIT DIFFERENTIAL EURO DOLLAR OVER MS. CERTIFICATE OF DEPOSIT FAVOR EURO-DOLLAR \i NEW YORK-LONDON: COST Of US. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES—PRIMARY MARKET Wednesday figures Per cent per annum 12 EURO-OOUA* DEPOSIT ADJUSTED* US. CERTIFICATE OF DEPOSIT ADJUSTED EO*M*OUA*OWE* US. CERTIFICATE OF DEPOSIT ADJUSTED * Adiusted for Reserve Requirement * * Adjusted for 1 0 * Marginal Reserve Requirement * * * Adjusted for 20% Marginal Reserve Requirement Chart 8A LONDON: COVERED YIELDS ON U S. DOLLAflf FUNDS HIRE PURCHASE/STERLING CD's vs EURO-DOLLAR RATES Friday figures Per cent per annum EURO DOLLAR DEPOSIT -HIRE PURCHASE COVERED STERLING CD s COVERED . FAVOR STERLING CD's DIFFERENTIAL FAVOR EURO DOLLAR S M D 1970 M J 1971 S D M J 1972 * H i r e Purchase suspended August 11, 1972 and Sterling Certificates of Deposit begin August 11, 1972 S D M J 1973 S Chart 88 LOUDON: COVERED YIELDS ON US. DOLLAR FUNDS LOCAL AUTHORITY AND EURO-DOLLAR RATES Friday figures Per cent per annum COVERED FAVO* LOCAL AUTHORITY DIFFERENTIAL FAVOR EURODOLLAR M J S D 1970 M J 1971 s D M J 1972 S 0 M J 1973 S 0 4>\ Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum I 3-MONTH TREASURY BILL RATES i f / \ J 1 i f A 1 ' ] : > 1 I u y ! A r \ ! 1 J\ UJL LOCAL AUTHORITY DEPOSITS* \ UNCOVERED 1 U 1 j V \ : V \ I \ l ! 1 —^ \ VAn ' | > A 1 . / .A ! !; 71 : ] a J r V w E W YORK M I I! 1 1 1 ! II 1969 * Plotted for comparison purposes i t h i l l 1970 i l l i 1 ! I 1 1 1 II 1971 ! 1 1 1 1 1 11 1 M 1972 1 1 1 y INTEREST A e e n w e t : UMTEO STATES AND UNITED Kmc DOM ffidey figures 1 RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING | / A PcrCMtptriMwn 4 PREMIUM, FAVOR Of LONDON 4i JlV^X FOMMIIDftAII / ) 1 1 DISCOUNT i i 1 i i 1 i I 1 i i 1 1 11 1 1 1 1 1 II .. r f 1 1 1 1 II 1 DIFFERENTIAL y //n II 1 J V v L I 1 1 11111 J I 1 1 1 1 fAVOR LOW DON 1 X- ^ / v r ! FAVOR NEW YORK n i l M i 1 i i 111 J S D 1 1 1I! M 1969 I 1 1 1 II J S 1970 D 1 1 1 1 1 1 1 1 1 1 1 M J 1971 S O 1 1 1 1 1 1 1 1 1 11 U J 1972 S O Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cei IN TERMS OF DM GERMAN INTERBANK LOAN RATE EURODOLLAR COVERED FAVOR FRANKFURT 1 DIFFERENTIAL An vA-A/ V WW , 1 A uVi 1 \j J r v M i i A i i i i i i i 1 1 1 1 1 1 1 1 1 1 1 M 1969 - No quotation 1970 J 1971 l I M FAVOR EURO-DOLLAR 1 l l 1 1 1 1 1 1 J 1972 S Chart 106 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF FRANCS EUllO-OOUAJt COVERED DEPOSIT RATE DIFFERENTIAL M J S D itfif No quotation # J JJ70 s D « J 1971 s 0 M J 1S72 s 0 4 Chart 11 3-MONTH INTEREST AWTEAtiE: UWTEO STATES - CANADA f "day figures Per cent per awn#* - BILL RATES (MltTED STATES 1 BILL RATE DIFFERENTIAL AMD FORWARD CAMAD1AM DOLLAR " ™ M or COVERED RATE DIFFERENTIALS , HWO* If71 Chart 12A SELECTED SHORT-TERM INTEREST RATES* Per cent per annum [GERMANY U.& U.S. 9 JAPAN CANADA 1968 1970 * 3-month treasury bill rates for all countries except JapaniAverage rate on bank loans and discounts) and Germanyllnterbank Loan Rate) 1972 Chart 128 SELECTED SHORT TERM INTEREST RATES* Per cent per ammwm ! I 1S68 1 12 1970 * 1 month treasury bill rate tor U S , Swtoerland-3-month deposit rate • • J month rate for U S dollar deposits m London 1S72 Chart 13 LONG-TERM BOND VELDS Weekly figures l#ef im U" US. US. UJC. us Monthly figures VS. US. CORP 1968 1969 1970 1971 1972 * New ser.es 1or Switzerland starts 8 2-68. U S Corp Dollar £uro-8onds * e d U S Corp OW Ciwo-6onds starts 12-70 * * New Average yield 01 all German PA Bonds begins 1-7-69 * * * N e * senes F starts 12 71 New series G starts 11 72 9 I I I I I I I I I I I l l l l l l . l l < r y W -Ar , waammommy*/ y i l l 1 1 I 1 ] 1 J 1 1 1 1 1 1 1 1 1 1 1 1 I y K i 1 1 1 1 1 111 M n Hide* of 225 MdMtrial J in «ode* of»» w M k i e i « • > v i i I i i 1 i i 1 M i w e / 1 J 1 1 1 1 i fM 1 1 1 1 1 / 1 7 ^ / J -s^r~V 1 1 1 1 1 1 1 1 1 1 1 w e y J ,1 .1 .1 ,1 1*70 ' «K**s toaM on Tokyo Mrtn^ft J 1971 J i JJ J ,,i U**r> i J J i 1 i i 1 # W 2 I i 1 March 7, 1973 H. 13 No. 600 IV. SELECTED CENTRAL BANK DISCOUNT RATES Country Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium France 5.0 Dec. 21. 1972 4.5 Nov. 22. 1972 7.50 Nov. 30, 1972 6.50 Hov. 2, 1972 Germany 5.00 Jan. 12, 1973 4.5 Nov. 30, 1972 Italy 4.0 April 10, 1972 4.5 Oct. 14, 1972 4.0 November 3,'72 3.0 Sept. 8. 1972 8.75 Jan. 19. 1973 9.0 Dec. 22. 1972 4.50 Jan. 1 . 1973 3.75 1 1 Netherlands im Canada Japan United States 15. 197? 4.75 Oct. 25, 1971 5.25 Feb. 24. 1971 4.25 June 24. 1972 4.75 A p r i l 79r 1971 5.00 Jan. 15. 1973 4.50 D?c, 1 ) , 1971 **Effective October 13, 1972, the Bank of England replaced its traditional Bank Rate with a fluctuating "minimum lending rate" based on average Treasury bill tender rate. January 19, 1973...8.75 IV-2 LATEST FIGURES PLOTTED OM THE CHARTS Chart Panel Series 1A Upper Swiss franc"""^ U.K. pound French franc Japanese yen Z / Lower IB Upper Belgian francV Italian lire l / Canadian dollar German mark 2 / Dutch guilder 2 / Lower 2A 26 Upper 3A 4 H A W Upper , j j Upper Lower March 2 M « ACTUAL RATE " " ACTUAL RATE ACTUAL B A T E Gold price, U.S. dollar per ounce Middle Lower I ! 1 y 2/ 3/ " ATTTUT German mark U.S. dollar Swiss franc French franc 38 56 ACTUAL RATE " " •• German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Lower 5A Dale Overnight Euro S deposits Federal Funds Differential Euro-currencies Euro DM Euro Swiss Fr. Japan, Unconditional Honey U K , 2-day Local Author. Deps. Canada, Day-to-day Loans France, Day-to Day Money Germany, Call Money Feb.9,16,23 Netherlands Call Money | M " « Rale 31,5620 ttiA A A / > N +1.622 .377380 +2,218 ,177680 100.58 +2,395 +2.597 48,50 +3,40 " -2.09 46,75 +1,86 " 40,18 MA " M „ " •• " +10.43 +2.57 44.25 +3,48 N 84.28 Feb, 28 8.18 6.58 +1.60 " Feb. 9 March 2 1.33 3,75p Feb, 23 5,250 11,06 Feb, 21 March 2 Hatch 2 Jan, 12 3,90 7.88 3,00.0,50.0,12,7,1: I 4,38 Swiss franc floated January 23, 1973 Italian line and Japanese yen floated February 14, 1973 French franc, Belgian franc, German mark, and Dutch guilder based on DCV ceetral rate# effective February 14, 1973, IV Chart Panel 6A 6B 3 Rate Series Date Euro-S Overnight Rate March 2 10.500 Euro-S 1-month Rate « 9.125 Euro-S 3-month Rate •• 8.688 Euro-S 6-month Rate 7A 8.000 Upper Euro-S 3-month Deposits Lower Differential ii +1.68 Upper Euro-S 3-month Deposits •1 8.13 Feb. 28 fi-13 U.S. Certificate of Deposits 7B 6.45 „ Euro-S 3-month Deposits (Adj.) Lower U.S. Certificate of Deposits (Adj.) " Differential: on Adj. Euro-S Deposits „ 1 8A j Upper ! Euro-S 3-month Deposits .. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Local Authority Deposits (covered) Feb. 9 Differential Euro-S 3-month Deposits Sterling CD's (covered) Lower 86 j Upper i Lower |. ( 9A Differential If* March 2 Upper Lower 8.01 March 2 Spread (+= favor London) ' | 3-month Forward Pound j j Net Incentive (+- favor London) i 5.68 U.K. Treasury Bill rate Local Authority Deposit (uncovered) 96 -1.41 7.63 7.50 7.23r 6.95r -0.40 -O-SS 7.63 7.SO 6.92r f 77r -0.71 -0.73 9 16 9 16 9 16 9 Feb. 16 U.S. Treasury Bill rate i 6.72 +3.66 ££ on Unadj. Euro-S Deposits ! 10-16 10.69 March 2 ti +2.33 j ! -2.82 ! -0.49 : IV-4 Chart Panel Series Dale 10A Uflper EIMO-$ Deposits (coveted) Feb, 28 German interbank Loan rale 108 Lower Differential Upper Euro-* Deposits (cowered) 11 Differential Upper Canadian Finance Paper 7,88 4.68 6 Mp -0 6* 5.13 U.S. Treasury Bill rale 5.64 Canadian Treasury Bill rale 3.96 U.S. Prime Finance paper toot plotted) Second 5.88 Bill tale differential -1.72 Forward Canadian dollar 12A -0,32 *8,20 Swiss Deposit rate Lower Rale ±2.06 Third Wet incentive on bills Bottom Met incentive on Finance Paper Upper U.K. Treasury Bill rate 8.01 U.S. Treasury Bill rate 5,64 +0-34 -2,81 German Interbank Loan rate Lower Canadian Treasury Bill rate 128 7,88 Japanese Average rate 6.724 March 2 3,96 U.S. Treasury Bill rate « 5,64 Euro-S Deposits •• 8,688 Swiss 3-month Deposit rate " 4'00p U.S. Treasury Bill rate " IV-5 Chart Panel Series 13 Upper Netherlands Rate Dale Feb. 23 Canada United Stales Feb. 16 7.18 Dec. 27 5.47 Switzerland Middle Feb. 7 Feb 1ST1>? * Germany United Kingdom Lower U S. Corp- Dollar U.S. Coip. DM Ewo-fewrfs U.S. Corp. Aaa bonds 14 Upper Switzerland Germany United Stales Middle United Kingdom Canada Lower ** Japan United States i* Q Scrjje8 c 6.88 s T6 8.58r * « A 6? 9 83 Jaanarr 7.62 7.66 7.06 7.12 February 7.22 Jaanarr March 2 412.6 Feb. 23 310.2 Fti>. 23 260.46 March 2 242.58 Feb. 22 23 Feb. 23 11 2*9.79 260.46 * 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.