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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 3 I H'13 No. 350 , — BOARD O F 8 0 V E R N 0 R S • • \ — May 15, 1968. CAPITAL MARKET!DEVELOPMENTS ABROAD I. II. I. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1968 Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York, London: Yields on U.S„ Dollar Funds 2 - London: Yields for U.S. Dollar Investors on ^ 3-Month Funds 3 - Interest Arbitrage: Frankfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-Term Interest Rates 7 - Long-Term Bond Yield§ 8 - Spot Exchange Rates--Major Currencies Against U.S. Dollar 9 - 3-Mpnth Forward Exchange Rates 10 - Industrial Stock Indices Europe and British Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS 3-MONTH D O H A # DEPOSIT RATES Wednetdoy figures Per cent per U.S. CIlTlFICm IF 1EPISIT E U R O D O L L A R OVER I S . C E R T I F I C A T E OF D E P O S I T CALL EURO-DOLLAR DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE ISITS FEIERAl IMS T %*#* • sr. •si. 1115 llll lee. • ar. lit. 1H7 Sept. 1161 Dec. 3 LONDON: YIELDS EURO-DOLLAR Friday figures FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES Per cent per annum 3 0 DAY _ 4 _ . CALL 1 8 0 DAY 9 0 DAY M S D M 1965 S 1966 D M J 1967 S M S 1968 D ' - LONDON: ^ YIELDS HIRE P U R C H A S E Friday figures FOR AND U.S. LOCAL DOLLAR INVESTORS AUTHORITY ON DEPOSIT 3-MONTH RATES c EURO FUNDS (covered) ' DOLLAR HIRE Per cent per annum DEPOSIT. PURCHASE FAVOR HIRE P U R C H A S E FAVOR DIFFERENTIAL EURO-DOLLAR DEPOSIT % LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY I FAVOR E U R O D O L L A R DIFFERENTIAL 1965 1966 1967 1968 6 I INTEREST ARBITRAGE: FRANKFURT FRANKFURT/LONDON, INTERBANK LOAN RATE VS. ZURICH/LONDON LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF DM EURO-DOLLAR INTERBANK LOAN RATE FAVOR FRANKFURT DIFFERENTIAL / V / • ^ ZU UR R II C CH H Z v Lr,.^ ^ ! i i ! i i I D DE EP PO OS S II T T 1 1 RATE 1 1 VS. "I ' ' LONDON V </ ^ J 1 EURO 1 1 . FAVOR EURO-DOLLAR K N T r t T i DOLLAR RATE i l l (COVERED) IN TERMS OF SWISS FRANCS ^EURODOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL FAVOR E U R O D O L L A R H PRICE 35.5 r ~ 35.4 - OF GOLD IN LONDON 45.0 43.0 41.0 35.3 39.0 35.2 37.0 35.0 1965 Market cloied March '5-April I. "68 1967 1968 w INTERST ARBITRAGE, Fndoy figures 3-MONTH TREASURY UNITED STATES / C A N A D A Per cent per BILL RATES C A N . F I N . CO P A P E R UNITED S T A T E S I CANADA BILL , RATE , , DIFFERENTIAL AND FORWARD 1 , r— C A N A D I A N DOLLAR 2 PREMIUM S P R E A D IN FAVOR OF CANADA F O R W A R D RATE 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) TREASURY BILLS PRIME FINANCE PAPER FAVOR U . S . FAVOR CANADA FAVOR 1965 1966 1967 1968 1 INTEREST ARBITRAGE, 3-MONTH 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 NEW YORK 1965 1966 1967 1968 % INTEREST RATE ARBITRAGE, DIFFERENTIAL NEW AND Y O R K / L O N D O N 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 Y \ 2 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 RATE DIFFERENTIAL WITH FORWARD 1965 1966 EXCHANGE COVER (NET 1967 INCENTIVE) 1968 A SHORT-TIKM INTIRIST IATI5* ] 8 EURO DOLLAR - LONDON t 7 6 UK 5 SWITZERLAND - 4 3 2 9 8 7 6 5 4 3 2 1964 1966 1965 '3 month treosvry bill roles for oil countries e.cept Jopon Switierlond (3-menlh deposit role) and Germany. 3 month rate for U.S dollar deposits' in London A.trogs role or bonk loons and discounts) Interbank Loan Rate) 1967 1966 LONG-TERM BOND YIELDS Weekly figures Per cenl per NETHERLANDS^ CANADA U.S. SWITZERLAND]: GERMANY U.K. EURODOLLAR BONDS U . S . E U R O DOL LAR B O N D S ^ ^ V » U.S. C O R P . Aa;i BONOS - 1 1 1 1 1 I 1 1 1 1! 1964 • • # • $$ **•* Average of New series New series New series • II 1 1 1 1 1 1 1 1 1 1965 l II II I II 1966 yields for four foreign government dollar bonds quoted in London. for Germany starts 7 9-65 lor Switzerland starts 3-3-67 for Netherlands starts 1-7-66 II 1 r i ii i i ir 1967 ii i i i i M II 1968 II i -i V SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC 1.2 / r G E R MrA N M A R K — 4 U.K. STERLING BELGIAN FRANC DUTCH GUILDER , T | I FRENCH FRANC 7 I T A L I A N LIRA CANADIAN DOLLAR ,_z' J A P A N E S E YEN M J s D M 1965 * Devoluotion of the pound sterling trom $2 80 lo $2 40 S 1966 • • J 1967 $ o M J 1968 s o 3-MONTH AGAINST FORWARD U.S. EXCHANGE DOLLARS — N E W RATES YORK GERMAN MARK / f c SWISS FRANC POUND. STERLING b- DISCOUNT- DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNT- AGAINST POUND i STERLING — L O N D O N S W I S S FRANC VVF>~i -V U . S . DOLLAR 8ISC0WNT1965 1967 1966 196# USTRIAL STOCK INDICES 360 320 280 240 SWITZERLAND 200 GERMANY 160 U.K. 120 360 320 280 JAPAN 240 CANADA 200 US h 160 120 1965 1966 Swiss lank Corporation industrial stock index Japan index of 225 industrial and other stocks traded on the Tokyo exchange 1967 1961 H. 13 No. 350 May 15, 1968. Il.a Latest Figures Plotted in H. 13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, May 8 Euro-$ deposit 6.44 U.S. cartif. of deposit 5.53 Lower Panels Federal Funds Treasury bills: Canada tie 6.71 5.52 S. Spread favor Canada +1.19 6.22 -1.25 6.00 Net incentive (Canada +) -0.06 ,) 7. 12 Canadian Finance paper 1 Chart 2 (Friday, Mav 10 Forward Canadian dollar May 8 (Wednesday, Call Euro-$ deposit Chart 4 (Friday, ) May 10 ) Chart 5 (Friday, May 10 Upper Panel - Euro-$ depossits: 6.92 Call 30-day 6.25 6.62 90-day 180-day 6.62 & 5.52 U.S. +1.40 Middle Panel Spread favor U.K. Hire-purchase paper (May 3) Euro-$ deposit - U.K. local authority deposit 4.47 8.38 Chart 6 (Friday, - May 10 6. ? ? Lover Panel Local-authority deposit (May 3) Euro-$ deposit (May 3) Chart 3 I. Upper panel (Period; Treasury bills: U.S. 5.52 U.K. 6.92 Canada 6.71 4.22 6. S3 May 1-7) Interbank Loan (mid-point) 3.62 Euro-$ deposits 3.56 ) Interbank loan rate (German) ( • May 1-7 ) 6.62 Euro-$ deposit (London) (average) 3.62 Zurich 3-month deposit Lower Panel (date April 15 ) (Date: Zurich 3-month deposit 2. 75 Euro-$ rate (covered) (May. 7) 3. 92 April 15 ) 2. 75 ) 7.45 Japan Composite rate II. Price of gold (Friday, May 10 39.62 ) (Date: Feb. 23 ) H. 13 No. 350 - 11. b - Hay 15, 1968. Chart 9 Chart 7 U.S. Gov't. (Wed. , May 8 (Friday. May 10 ) ) 5.29 U.K. War Loan (Thurs., May 9 ) 7.22 Against U.S. dollars; German Fed. (Fri., 6.46 Swiss francs +2« 00 Dutch Glds. +1. 67 Swiss Confed. (Fri., Apr. ,19) 4.53 ' ( F r i . , Apr. , 26) 4.51 Canadian Gov' t. (Wed. , May 8 ) 6. 64 German marks +3.10 Fr. Francs +0- 94 £ Sterling Can. $ -1.29 Netherlands Gov't. ( F r i d a y , A p r i l 26) (Friday, May 3 Against pound sterling: May 3 ) -4-95 ) 6.49 6.45 Swiss francs +5.64 Euro- $ bonds (Fri. , May 10 ) 7.57 U.S. dollars +4.02 U.S. Euro-bonds ( April 30 ) 7.25 U. S. Corporate Aaa ( April 30 ) 6.21 Chart 8 (Friday, May 10 Ger. marks +7.99 Chart 10 U.S.( k Japan ( ) « May 10 ) 219.2 March 22 ) 237.7 Dutch Glds. -0-01 U.K. (Fri. , German marks +0«54 Can. $ +0» 25 Switzerland (Fri,• May 10 U.K. £ Ster. -0-40 it. Lire +0.44 Germany ( April 26 ) 254.0 -0-64 Canada ( April 26 ) 200.2 Swiss francs +0.97 Belgian francs+0-63 jap. Yens May 10 ) 253.2 ) 328.3 French francs +0"07 For descriptions and sources of data, dated March 27, 1968. ;Special Supplement No. 343-S A
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