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DIVISION 0 T T N T E R N A T I O N A L F I N A N C E | BOARD OF GOVERNORS ' OF THK H.'13 May 17, 1967 N<|. 299 i L- -i CAPITAL MARKET DEVELOPMENTS ABROAD Ic II. Ten C h a r t s on Financial Markets Abroad Latest Figures Plotted in H-13 Chart Series 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, Mortreal: 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 Interest Rates 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) NEW YORK, LONDON, MONTREAL: YIELDS FOR U . S . D O L L A R DOLLAR DEPOSIT INVESTORS O N 3 - M O N T H RATES: 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 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 FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK U . K . HIRE P U R C H A S E LONDON: Y I E L D S FOR U . S . DOLLAR INVESTORS ON 3-MONTH FUNDS E U R O - D O L L A R D E P O S I T RATES 3 0 DAY 1 8 0 DAY 9 0 DAY CALL HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE P U R C H A S E EURO-DOLLAR DEPOSIT DIFFERENTIAL FAVOR HIRE P U R C H A S E FAVOR EURO-DOLLAR EURO-DOLLAR DEPOSIT v LOCAL AUTHORITY DEPOSIT DIFFERENTIAL FAVOR LOCAL AUTHORITY FAVOR EURODOLLAR 1965 1966 1967 X 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 DIFFERENTIAL FAVOR FRANKFURT FAVOR EURO-DOLLAR ZURICH DEPOSIT RATE | VS. LONDON RATE ( C O V E R E D ) IN TERMS 1 : EURO-DOLLAR ' j EURO DOLLAR V r v v ^ J OF SWISS FRANCS V S W I S S DEPOSIT RATE ^ ^ \ 1 FAVOR ZURICH DIFFERENTIAL 1 ^ ^ F A m / 4 4 R 0 - D 0 L L A * i i i i i ; i i : i i i i . : i : i 1 i I . ! 1 1 INTEREST ARBITRAGE, 3-MONTH TREASURY UNITED STATES/CANADA BILL RATES , | C A N . F I N . CO. P A P E R CANADA UNITED STATES ; 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 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 ) PRIME FINANCE PAPER | FAVOR U.S. FAVOR CANADA ~ TREASURY BILLS FAVOR U . S . M J S 1964 M J 1965 S J 1966 S S D 1967 0 INTEREST 3-MONTH ARBITRAGE, TREASURY NEW BILL YORK/LONDON RATES ! 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 PREMIUM DISCOUNT FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN F A V O R OF L O N D O N IN F A V O R OF N E W Y O R K 1964 1965 1966 1967 SHORT-TERM INTEREST RATES * E U R O - D O L L A R - LO N D O N t SWITZERLAND on (Averoge [ Inierbo n k Loo LONG-TERM BOND YIELDS Weekly figure! NETHERLANDS CANADA SWITZERLAND GERMANY U.K. EURO-DOLLAR B O N D S Xx 1963 1964 1965 Average of yield* for four foreign government dollor bond* quoted m London New series for Germany start* 7 9 65 1966 1967 A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. COLLAR S W I i >S F R A N C f x v " V ' GERI MAN M A R K r^-\ i / : V r v V " / / A \ / r' U K . STERLING I ! I —[ . v I i i i I — : — I 1 FRENCH FRANC V\_-BE L G I A N F R A N ic/ / " \\ V I Dl JTCH GUILDI ER A 'p / T 1 / i i 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 1965 1966 1967 i 3-MONTH AGAINST Friday figures FORWARD U.S. EXCHANGE DOLLARS —NEW RATES YORK PREMIUM GERMAN MARK i < : V ^ X - / - v 4 V SWISS FRANC POUND STERLING DISCOUNT | 2 PREMIUM* DUTCH GUILDER ' FRENCH FRANC C A N A D I A N DOLLAR DISCOUNT- AG AI N S T POUND Friday figures STERLING — L O N D O N Per cent per annum PREMIUM S W I S S FRANC ' | G E R M A N MARK U . S . DOLLAR DISCOUNTM J S 1964 D M J 1965 S D M 1 1966 S D L INDUSTRIAL STOCK INDICES 360 320 280 SWITZERLAND 240 200 U.S. GERMANY 160 120 360 320 280 JAPAN 240 200 CANADA 160 120 1964 1965 1966 1967 V" H. 13 No. 299 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 10 4. 88 U.S. c e r t i f . of d e p o s i t 4.47 Lower P a n e l (Friday, ) May 12 Finance co. paper: U.S. Canada H i r e - p u r c h a s e p a p e r , U.K. Chart 2 ( F r i d a y , Mav 12 Chart 5 ( F r i d a y , Mav 12 ) Euro-$ d e p o s i t 4.38 4.64 4.91 Treasury b i l l s : Hire-purchase paper (May 5) Local-authority deposit (May 5) Upper P a n e l F o r w a r d pound -0. 78 +0. 78 Chart 6 ( F r i d a y , Mav 12 ) 4.92 5.06 4.94 4.94 Chart 3 (Period: May 1-7 ) Interbank loan (mid-point) 3. 97 E u r o - $ deposit ( a v e r a g e ) 4. 78 Lower P a n e l (Date: April 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, May 5 ) 4.25 35.179 Chart 4 (Friday, Mav 12 ) U.S. Spread f a v o r Canada 4.02 3. 63 +9, 5? Forward Canadian $ -0. N e t i n c e n t i v e (Canada + ) +Q. 22 M 4. 88 3.63 5.09 4.02 U.S. U.K. Canada 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 ( D a t e : Aoril 15 Japan composit r a t e ( D a t e : January 31 3.97 4.92 ) 4.25 ) 7.35 Chart 7 U.S. G o v ' t . (Wed., ) 4.85 U.K. War Loan ( T h u r s . , May 11 ) 6,58 German F e d . 6. 87 (Fri., Swiss Confed. ( F r i . , Canadian Gov't. Canadian finance paper +1.46 N e t i n c e n t i v e (U.K. + ) ) 90-day 180-day 5.09 3. 63 S p r e a d f a v o r U.K. Treasury b i l l s : 4.75 5- 00 ) U.K. U.S. Euro-$ d e p o s i t s : Call 30-day 1967 May 10 May 5 ) April 21) 4.29 ( W e d . , May 10 ) 5-79 N e t h e r l a n d s G o v ' t , p e r p e t u a l 37. (Friday, May 5 ) 5,45 E u r o - $ bonds ( F r i . , 6,26 Mav 12 ) F o r d e s c r i p t i o n s and s o u r c e s of d a t a , see s p e c i a l s u p p l e m e n t t o H . 1 3 , Number 2 3 9 , March 1 6 , 1966.
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