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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 BOARD OF GOVERNORS H. 13 J,.:09 March 8, 1967 . : ^ C A P I T A L I. iro I. M A R K E l \ D E V E L O P M E H T S A B R O A D Ten Charts on Financial Markets Abroad Latest Figures Plotted in H. 13 Chart Series, 1967 Ten Charts on Financial Markets Abroad Chart 1 Chart 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London, Montreal; Yields for U.S. 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 York/Canada Interest Arbitrage: New York/London Short-term Bond Yields 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. OFFICIAL USE ONLY (Decontrolled after six months) i NEW YORK, L O N D O N , MONTREAL: Y I E L D S 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 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 I I I : FINANCE CO. PAPER i H i I j j j 1 1 RATES ( c o v e r e d ) : \/\ 1 i f QUOTED 1 IN NEW 1 1 1 ; 1 1 In 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 Dec. Mar. Jun. 1966 Sept. Dec. Mar. 11967 Jun. LONDON: EURO Y I E L D S FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS D O L L A R D E P O S I T RATES ! | 3 0 DAY 1 8 0 DAY 1 . . - HIRE W PURCHASE AND A | - , CALL LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE P U R C H A S E EURO-DOLLAR DEPOSIT | DIFFERENTIAL FAVOR HIRE PURCHASE EURO DOLLAR D E P O S I T | 1 1 r D I F F E R E N T I A L ^ v - 1965 ' LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY ^ v v | FAVOR 1966 1967 EURODOLLAR . I v c \ I N TEREST 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 N / I O N D O N • FRANKFURT INTERBANK LOAN RATE V S . LONDON EURO D O L L A R RATE ( C O V E R E D ) IN INTERBANK LOAN RATE DIFFERENTIAL TERMS OF DM FAVOR FRANKFURT FAVOR EURODOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE ( C O V E R E D ) IN TERMS OF SWISS FRANCS EURODOLLAR S W I S S DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR E U R O D O L L A R n PRICE OF G O L D IN L O N D O N 35.3 35.0 1965 1966 1967 INTEREST | ARBITRAGE, 3-MONTH TREASURY UNITED STATES/CANADA BILL RATES C A N . FIN. CO. P A P E R CANADA j UNITED STATES s BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN DOLLAR PREMIUM S P R E A D IN F A V O R OF C A N A D A FORWARD RATE 3-MONTH COVERED RATE D I F F E R E N T I A L S DISCOUNT (NET I N C E N T I V E S ) FAVOR CANADA PRIME FINANCE PAPER F A V O I U.S. TREASURY BILLS ! F A V O R U.S. 1964 1965 1966 1967 INTEREST 3-MONTH ARBITRAGE, TREASURY NEW BILL Y O R K / L O N D O N RATES U.K. LOCAL AUTHORITY D E P O S I T S LONDON /V NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING S P R E A D IN F A V O R OF L O N D O N DISCOUNT FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER IN F A V O R OF L O N D O N . ^ Tl U ! 1964 (NET i I I IN F A V O R OF N E W Y O R K 1965 INCENTIVE) | j A , , ^ ! •, , 1966 k / I - V I I 1967 ! SHORT-TERM INTER£»T RAlt» SWITZERLAND CANADA fV % LONG-TERM BOND YIELDS NETHERLANDS CANADA SWITZERLAND GERMANY EURO DOLLAR B O N D S 1963 1964 1965 Averoge of yields for four foreign government dollar bond* quoted in London New series for Germany starts 7 9 65 1966 1967 SPOT EXCHANGE RATES - M SWISS FRANC 1.2 GERMAN MARK. U.K. STERLING — F R E N C H FRANC BELGIAN FRANC, DUTCH GUILDER CANADIAN DOLLAR I T A L I A N LIRA J A P A N E S E YEN M J s 1965 D M J 1966 S D M 1967 J 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS —NEW RATES YORK G E R M A N MARK \ 'I - V SWISS FRANC STERLING DISCOUNTPREMIUM DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNT- A G A l NST POUND STERLING- LONDON SWISS FRANC /*v U . S . DOLLAR G E R M A N MARK NDUSTRIAL STOCK INDICES 3 2 0 280 SWITZERLAND 2 4 0 200 160 120 CANADA 1965 1966 Y > H. 13 No. 289 March 8 , 1967 II. 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 S e r i e s , 1967 ( a l l f i g u r e s per c e n t per annum) Chart 1 (Wednesday, Upper Panel March 1 Chart 5 ( F r i d a y , Mar, 3 ) ) Euro-$ d e p o s i t 5. 50 U.S. c e r t i f . of d e p o s i t 5. 17 Lower Panel (Friday, Treasury b i l l s : U.S. Canada Hire-purchase paper, U.K. 5.13 5.81 5. 65 Spread favor U.K. +1.48 -0. 79 Net i n c e n t i v e (U.K. + ) +0. 69 Chart 6 ( F r i d a y , Max. 3 ) Chart 2 ( F r i d a y , March 3 ) Treasury b i l l s : Euro-$ d e p o s i t s : 90-day 180-day 5.38 5.75 5.56 5.69 Hire-purchase paper (Feb. 21) Local-authority deposit (Feb. 5.52 5.52 24) Chart 3 (Period: Feb. 24- 28 Upper Panel ) Interbank loan ( m i d - p o i n t ) Euro-$ d e p o s i t (average) 5. 71 (Date: Zurich 3-month d e p o s i t 4.50 P r i c e of gold (Friday, Feb. 24 ) Feb, 15 ) 35. ]59 Treasury b i l l s : Canada U.S. Spread favor Canada Forward Canadian $ Net i n c e n t i v e (Canada + ) Canadian f i n a n c e paper 4.35 5.83 4.37 Zurich 3-month d e p o s i t (Date: Feb. 15 Japan composit r a t e (Date: Nov. 30 5.31 5.56 ) 4.50 ) 7.39 Chart 7 U.S. Gov't. (Wed., Mar. 1 U.K. War Loan ( T h u r s . , German Fed. (Fri., ) Mar, 2) Mar, 3 4.54 6.50 ) 7.29 Feb. 17 ) 4.24 (Wed., Mar. 1 ) 5.59 Swiss Confed. ( F r i . , Canadian Gov't. Chart 4 (Friday, Mar. 3 ) U.S. U.K. Canada Interbank loan r a t e (German) (Feb. 24-28) Euro-$ d e p o s i t (London) 5. 31 Lower Panel 5.83 4.35 Forward pound ) March 3 Finance c o . paper: Call 30-day U.K. U.S. Netherlands Gov't, p e r p e t u a l 37. ( F r i d a y , Feb. 17 ) 4. 37 4. 35 5.74 Euro-$ bonds ( F r i . , 6.30 Mar, 3 ) -W.02 0.00 -KL02 5.62 For d e s c r i p t i o n s and sources of d a t a , s e e s p e c i a l supplement to H.13, Number 239, March 16, 1966.
@FedFRASER