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DIVISION OF INTERllji'TTONAL. FINANCE BOARD OF GOVERNORS H. 13 No. 298 May 1 0 , rCAPITAL MARKER DEVELOPMENTS ABROAD I.. II. Ten C h a r t s on F i n a n c i a l M a r k e t s Abroad L a t e s t F i g u r e s P l o t t e d i n H . 1 3 Chart S e r i e s , 1967 Ten C h a r t s on F i n a n c i a l M a r k e t s Abroad Chart 1 Chart 2 Chart 3 Chart 4 5 6 7 8 Chart Chart Chart Chart Chart Chart 9 10 New York, London, M o n t r e a l : Y i e l d s f o r U . S . D o l l a r I n v e s t o r s on 3-month Funds London: Y i e l d s f o r U.S. D o l l a r I n v e s t o r s on 3-month Funds I n t e r e s t Arbitrage: Frankfurt/London, Zurich/London I n t e r e s t A r b i t r a g e : New York/Canada. I n t e r e s t A r b i t r a g e : New York/London Short-term I n t e r e s t Rates L o n g - t e r m Bond Y i e l d s Spot Exchange R a t e s - - M a j o r C u r r e n c i e s A g a i n s t U.S. D o l l a r 3-month Forward Exchange R a t e s I n d u s t r i a l Stock I n d i c e s Europe and B r i t i s h Commonwealth S e c t i o n . OFFICIAL USE ONLY ( D e c o n t r o l l e d a f t e r s i x months) 1967. NEW YORK, LONDON, MONTREAL: YIELDS FOR U . S . D O L L A R DOLLAR DEPOSIT INVESTORS O N RATES: 3-MONTH FUNDS NEW 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 | EURO DOLLAR OVER U . S . CERTIFICATE OF D E P O S I T i i FINANCE i CO. i PAPER 1 i J\ r^l i i RATES ( c o v e r e d ) : i 1 I T QUOTED IN 1 NEW 1 1 1 YORK U.K. HIRE P U R C H A S E 1 1 k i i i LONDON: YIELDS EURO-DOLLAR FOR U.S. DEPOSIT DOLLAR INVESTORS ON 3-MONTH FUNDS RATES 3 0 DAY 1 8 0 DAY HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE P U R C H A S E EURO-DOLLAR D E P O S I T DIFFERENTIAL FAVOR H I R E P U R C H A S E FAVOR E U R O D O L L A R i I i I I 1 EURO -DOLLAR DEPOSIT 1 v ! - LOCAL AUTHORITY DEPOSIT I ! ! DIFFERENTIAL / FAVOR LOCAL AUTHORITY . V /N ^ 1 1965 1966 1 1 i FAVOR EURO-DOLLAR 1 1 I 1 ! 1 1967 4 I INTEREST ARBITRAGE: 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 I N T E R B A N K LOAN R A T E TERMS OF DM EURO-DOLLAR ! D I F F E R E DI T I A L / V FAVOR FRANKFURT UvJ / w 1 1 ' 1 1 1 1 i i ! i i i V i i i i s, i / \ y i FAVOR E U R O D O L L A R ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS EURODOLLAR S W I S S DEPOSIT RATE i F A f 0 t ZURICH DIFFERENTIAL I6LLAR Z | V i H I I I i ! 1 I ! 1 \ i ! A I i ! i i ! i i ; i i 1 1 1 1 PRICE OF G O L D IN L O N D O N 35.3 J 1965 I I I I i L 1111 I 1 1167 1 35.0 INTEREST ARBITRAGE, 3-MONTH UNITED TREASURY BILL STATES/CANADA RATES C A N . F I N . CO. P A P E R CANADA UNITED S T A T E S BILL RATE D I F F E R E N T I A L AND FORWARD CANADIAN DOLLAR S P R E A D IN FAVOR OF CANADA F O R W A R D RATE 3-MONTH COVERED RATE D I F F E R E N T I A L S (NET INCENTIVES) FAVOR C A N A D A P R I M E FINANCE P A P E R FAVOR U . S . FAVOR C A N A D A ~ TREASURY D L L S M S 0 1964 N J 1965 s I M J 1966 S I M J 1967 S 0 INTEREST ARBITRAGE, 3-MONTH NEW TREASURY BILL YORK/LONDON RATES U.K. LOCAL AUTHORITY D E P O S I T S ! LONDON W 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 PREMIUM DISCOUNT FORWARD RATE RATE DIFFERENTIAL I — ; i ! i ; FORWARD EXCHANGE ! . i (NET INCENTIVE) 1 1 ! ; i : : ! 1964 s , , IN F A V O R OF NEW YORK 1965 - A r ; . COVER IN F A V O R OF L O N D O N I i ! WITH ! A-VVVX^^ l , , | 1966 , 1 1 1 1 1967 1 1 SHORT-TERM INTEREST RATES * EURO-DOLLAR - LONDON + U.K. SWITZERLAND JAPAN GERMANY CANADA 1963 1964 1965 1966 1967 4 LONG-TERM BOND YIELDS NETHERLANDS CANADA SWITZERLAND GERMANY EURO-DOLLAR BONDS' 1113 1114 New lenei f*r Germeny iHrlt 7*45 IMS 1MI 1117 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWI S S FRANC | \ I v x \ u / GERI M A N M A R K 1 ^ M / / r A w - - / A U.K. STERLING i I 1 : FRENCH FRANC BELGIAN FRANC, DUTCH GUILDER C A N A D I A N DOLLAR I T A L I A N LIRA J A P A N E S E YEN M J s 1965 D J 1966 S D M 1967 J Y> 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS —NEW RATES YORK PREMIUM : G E R M A N MARK ' v—v , I / 'V / V SWISS FRANC POUND STERLING , DISCOUNT — 2 PREMIUM DUTCH GUILDER i AGAINST POUND FRENCH FRANC + STERLING — L O N D O N 1 SWISS FRANC PREMIUM GERMAN MARK U.S. DOLLAR DISCOUNT — M J S 1964 D M J 1965 S D M J 1966 S D INDUSTRIAL STOCK INDICES 3IC 321 210 SWITZERLAND 240 200 GERMANY ; 110 120 201 JAPAN 240 111 CANADA 189 111 1964 1965 1966 1967 19-' H. 1 3 10, May NO.298 I I . L a t e s t F i g u r e ; s P l o t t e d i n H. 13 C h a r t S e r i e s , ( a l l f i g u r e s p e r c e n t p e r annum) Chart 1 (Wednesday, Upper P a n e l May 3 Euro-$ d e p o s i t 4.62 U.S. 4. 46 certif. of d e p o s i t Lower P a n e l (Friday, Finance co. May 5 Treasury b i l l s : paper: U.K. U.S. S p r e a d f a v o r U.K. +L..47 Forward pound -0,81 4 . 64 Net i n c e n t i v e (U.K. + ) Chart 6 ( F r i d a y , May 5 90-day 180-day U.S. 3.65 U.K. ' 5.12 Canada ~T. 9 3 4.81 4.88 4.82 4.89 ) May 1--7 I n t e r b a n k l o a n r a t e (German) (May 1 - 7 ) E u r o - $ d e p o s i t (London) * Z u r i c h 3-month d e p o s i t (Date: A p r i l 15 Japan composit r a t e (Date: January 31 Interbank loan (mid-point) 3.97 Euro-$ d e p o s i t 4.78 U.S. Gov't. ( W e d . , ) U.K. War (average) (Date: April 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, April 15 _AJ5 _35^188 28 Chart Loan German F e d . (Fri. , Swiss Confed. _J=_2L 4.81 ) Ju25 ) _7._35_ 7 May 3 (Thurs., ) 4.73 May 4 ) __6i.iL May 5 ) 6.87 (Fri. , April 21 ) 4.29 (Wed. , A p r i l 26) 5.63 ) Canadian Gov't. Chart 4 (Friday, May 5 Treasury b i l l s : Canada U.S. S p r e a d f a v o r Canada ) Netherlands Gov't, perpetual (Friday, May 5 ) 3,, 9 3 3,, 6 5 + 0 .,28 E u r o - $ bonds ( F r i . , For descriptions Forward C a n a d i a n $ - 0 . 17 special Net + 0 . 11 "Zurich March incentive ) ) Euro-$ d e p o s i t s : *Lower P a n e l +0. 66 4.88 Treasury b i l l s : H i r e - p u r c h a s e paper ( A p r i l 28) Local-authority deposit ( A p r i l 28) Chart 3 Upper P a n e l (Period: 5.12 4.50 Chart 2 (Friday, May 5 4.50 4.81 ) ) U.S. Canada H i r e - p u r c h a s e p a p e r , U.K. Call 30-day 1967 Chart 5 ( F r i d a y , May 5 ) (Canada + ) Canadian f i n a n c e paper 19 4.88 16, March 5.46 May 5 and supplement 3% sources to H . 1 3 , ) 6.17 of d a t a , Number see 239, 1966. Deposit Rate: 15 4.50 23 30 4.50 4.50 April 7 4.50 15 4.25
@FedFRASER