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DIVISION OF I N T E R N A T I O N A L JFINANCE
'
";-.13U»l
^,'^7
BOARD OF GOVERNORS
j
-.-i
May 31, 1967.
CAPITAL MARKET DEVELOPMENTS ABROAD
I.
II.
I.
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
1
Chart
Chart
Chart
Chart
Chart
4
5
6
7
8
Chart 9
Chart 10
New York, London, Montreal:
Spot Exchange Rates--Major Currencies
Against U.S. Dollar
3-month Forward Exchange Rates
Industrial Stock Indices
Europe and British Commonwealth Section.
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
OFFICIAL USE ONLY
("Decontrolled after six months)
NEW
YORK,
LONDON,
YIELDS FOR U . S .
DOLLAR
MONTREAL:
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
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
CANADIAN FINANCE
COMPANY
U.S. FINANCE COMPANY
Mar.
Jun.
Sept.
1965
Dec.
Mar.
.«*.
1866
Sept.
Dec.
Mar.
1967
Jun.
L O N D O N :
YIELDS
EURO-DOLLAR
FOR
DEPOSIT
U.S.
DOLLAR
INVESTORS
ON
3 - M O N T H
FUNDS
RATES
1 8 0 DAY
9 0 DAY
HIRE
PURCHASE
AND
LOCAL
AUTHORITY
DEPOSIT
RATES
(cover*
HIRE P U R C H A S E
EURO DOLLAR D E P O S I T
DIFFERENTIAL
FAVOR
FAVOR
EURO or I i n
HIRE
PURCHASE
EURO-DOLLAR
DEPOSIT
LOCAL AUTHORITY DEPOSIT
DIFFERENTIAL
FAVOR
LOCAL
FAVOR
1966
1967
AUTHORITY
EURODOLLAR
VI
I
INTEREST ARBITRAGE:
' FRANKFURT
FRANKFURT/LONDON,
INTERBANK
LOAN
RATE
VS.
ZURICH/LONDON
LONDON
EURO
DOLLAR
RATE
(COVERED)
IN
INTERBANK LOAN RATE
TERMS
OF
DM
EURODOLLAR
/
•
j
DIFFERENTIAL
I
X
^
I -
V/
j
!
i
1
FAVOR FRANKFURT
V
V \ z ~ "
i
:
ZURICH
;
,
i
DEPOSIT
. ;
,
RATE
:
VS.
.
i
i
LONDON
.
1
,
EURO-DOLLAR
RATE
I
1
I
1
V ,
FAVOR E U R O D O L L A R
(COVERED)
IN
TERMS
OF
SWISS
FRANCS
EURO-DOLLAR
S W I S S DEPOSIT RATE
:
!
DIFFERENTIAL
/ N /
1
^ V V
1
3Z P R I C E O F
1
i
!
.
A
I
GOLD
;
IN
1
!
i
!
1
1
1
!
|
1
FAVIR
U
1
.
1
/
:
1
i
1
1
1
1
1
i
.
1
W
1
I
1
LONDON
1965
1966
ZURICH
F A V O R X K£O-00LLAR
1117
1 '
INTEREST
Friday figure*
ARBITRAGE,
UNITED
STATES/CANADA
P«r c e n t p e r a n n u m
__
3-MONTH
TREASURY
BILL
RATES
C A N . F I N . CO. P A P E R
CANADA
UNITED STATES
BILL
RATE
DIFFERENTIAL
AND
FORWARD
C A N A D I A N
PREMIUM
DOLLAR
S P R E A D IN FAVOR OF C A N A D A
FORWARD RATE
3-MONTH
COVERED
RATE
DIFFERENTIALS
(NET
DISCOUNT
INCENTIVES)
FAVOR C A N A D A
PRIME FINANCE PAPER
F A V I I U.S.
FAVOR C A N A I A ~
TREASURY BILLS
FAVII I t.
M
J
S
S
D
1964
1965
D
M
J
1966
S
0
M
J
1917
S
I
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
N E W 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
FORWARD RATE
RATE
DIFFERENTIAL
WITH
FORWARD
EXCHANGE
COVER
v* ^
(NET
INCENTIVE)
^yVs/*-
DISCOUNT
j
IN F A V O R OF L O N D O N
IN F A V O R OF N E W YORK
1964
1965
j
1966
1117
n
SHORT-TERM
INTEREST
RATES
EURO-DOLLAR - LONDON +
SWITZERLAND
JAPAN
GERMANY
I
—
6
CANADA
1963
—
1964
-
—
1965
, . i ! II I ! ! I
1966
1967
%
LONG-TERM BOND
YIELDS
NETHERLANDS
CANADA
SWITZERLAND
EUII-IQLLAR BONDS
1963
*
* *
1964
IMS
> r # r e g « of y . # l d i for f o u r f o r e i g n g o v e r n m e n t d o l l a r b o n d i q » » r e d im L# * d* m
I » n i ( lof G t r m o n y n o r t j 7 9 6 5
N e w $ e n e i for S w d z e r l a n d starts 3 3 6 7
IMt
1967
SPOT
EXCHANGE
RATES
-
MAJOR
CURRENCIES
AGAINST
U.S.
DOLLAR
SWISS FRANC
1.2
GERMAN MARK
U.K. STERLING
!
FR E N C H F R A N I \
X / V - t S E L 6 I A N FRAft
'j
0
r1
<
n
\\
Ui
I
~
,
£
/
/
;
Dli ITCH G U I L D ! :R
!
J
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
s
1965
D
•
J
1966
1967
3-MONTH
'AGAINST
FORWARD
U.S.
EXCHANGE
DOLLARS —NEW
RATES
YORK
SWISS FRANC
\
V
G E R M A N MARK
( /
DISCOUNT
FRENCH FRANC
DUTCH GUILDER
C A N A D I A N DOLLAR
AGAINST
POUND
STERLING — L O N D O N
S W I S S FRANC
G E R M A N MARK
U . S . DOLLAR
DISCOUNT-
\
INDUSTRIAL
I
STOCK
'
-
INDICES
t 9 ss >00
-—
'
—
—
—
1
•
360
320
-
280
SWITZERLAND
GERMANY
120
360
320
280
JAPAN
240
200
CANADA
160
1964
1965
1966
1967
H. 13
iNo. 301
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
Chart 5
(Friday^ Hay" 26 )
May ^4
Euro-$ d e p o s i t
Treasury b i l l s :
Lower Panel
(Friday,
)
May 26
4. 38
4. 66
5. 00
Finance co. paper:
U.S.
Canada
Hire-purchase paper, U.K.
Chart 2
( F r i d a y , May 26
Spread favor U.K.
4-1. 68
Forward pound
-0. 69
Net i n c e n t i v e (U.K. +)
+0. 99
Chart 6
(Friday, May 26 )
)
Treasury b i l l s :
Euro-$ d e p o s i t s :
Call
30-day
4.62
5.00
180-day
5.00
5. 18
4.90
Hire-purchase paper
(May 19)
4.80
Local-authority deposit
(May 19)
Chart 3
Upper Panel (Period: May 16 - 23
)
Interbank loan (mid-point)
3.56
Euro-$ d e p o s i t (average)
4. 26
Lower Panel
(Date:
P r i c e of gold
(Friday,
Ma
y
)
April 15
Zurich 3-month d e p o s i t
19
.
Zurich 3-month d e p o s i t
(Date: April 15
Japan composite r a t e
(Date:
March 31
5.00
)
4.25
)
7. 32
Chart 7
U.S. Gov't.
(Wed. ,
May 24
U.K. War Loan (Thurs. ,
May
25
)
3.91
)
6.62
)
6.68
35.179
* S w i s s Confed. ( F r i . , May 19
)
4.70
)
4. 11
3.45
4-0. 66
Forward Canadian $
-0. 15
Net i n c e n t i v e (Canada +)
+0.51
3.56
German Fed. ( F r i . , May 19
Canada
U.S.
Spread favor Canada
Canadian f i n a n c e paper
5.13
4. 11
Interbank loan r a t e (German)
(May 16 - 23)
Euro-$ d e p o s i t (London)
Canadian Gov't.
Treasury b i l l s :
U.S.
U.K.
Canada
4. 25
)
Chart 4
(Friday, Mav 26
5. 13
3.45
U.K.
U.S.
4.48
U.S. c e r t i f . of d e p o s i t
May 31, 1967
(Wed.,May 17 )
5.84
Netherlands Gov't, perpetual 37»
(Friday,
May 12
)
5.50
Euro-$ bonds ( F r i . , May 26
6.29
)
For d e s c r i p t i o n s and sources of d a t a , see
s p e c i a l supplement to H.13, Number 239,
March 16, 1966.
*Swiss 4 - 1 / 2 7o 1981
April 28
4.77
May 5
4.72
May 12
4.72
4.70
May 19
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