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D I V I S I O N OF I N T E R N A T I O N A L F I N A N C E
...
.
No./ ^ 6 , : ^
BOARD OF GOVERNORS
F E D E R A L RESERVE SYSTEM
(
'
i
)
I
May 4, 1966.
CAPITAL MARKET DEVELOPMENTS ABROAD
I.
II.
I.
Ten Charts on Financial Markets Abroad
Latest Figures Plotted in H.13 Chart Series, 1966
Ten Charts on Financial Markets Abroad
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
Chart
1 - New York, London, Montreal: Yields for
U.S. Dollar Investors on 3-month 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 Yields
8 - Spot Exchange Rates—Major Currencies
Against U.S. Dollar
9 - 3-month Forward Exchange Rates
10 - Industrial Stock Indices
Europe and British Commonwealth Section.
OFFICIAL USE ONLY
(Decontrolled after six months)
NEW YORK, LONDON, MONTREAL*
YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS
DOLLAR DEPOSIT RATES: NEW Y O R K - L O N D O N
Wedneidoy ligvrii
EURO-DOLLAR DEPOSIT
U.S. CERTIFICATE OF DEPOSIT
'
I
I
EURO DOLLAR OVER
U.S. CERTIFICATE OF DEPOSIT
FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK
CANADIAN FINANCE
COMPANY
U.K. HIRE PURCHASE
U.S. FINANCE COMPANY
Mar.
JIM.
1964
Sept.
Dec.
Mar.
Jun.
1965
Sept.
Dec.
Mar.
Inn.
1966
Sept.
Dec.
L O N D O N : YIELDS FOR U.S. DOLLAR
E U R O D O L L A R D E P O S I T RATES
INVESTORS ON
3-MONy
/>
FUNDS
9 0 DAY
180 DAY
- 3 0
HIRE PURCHASE A N D
DAY
CALL
L O C A L A U T H O R I T Y D E P O S I T RATES ( c o v e r e d )
EURO-DOLLAR DEPOSIT
HIRE PURCHASE
r
T
DIFFERENTIAL
1
FAVOR HIRE PURCHASE
FAVOR E U R O D O L L A R
LOCAL AUTHORITY DEPOSIT
EURO D O L L A R DEPOSIT
T
DIFFERENTIAL
~
I
|
1
I
FAVOR LOCAL AUTHORITY
FAVOR EURO-DOLLAR
1964
1965
1966
INTEREST A R 1 I T R A 6 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 L O A N
RATE VS. L O N D O N EURO DOLLAR RATE ( C O V E R E D )
Par caul per *****
I N TERMS O F D M _
INTERBANK LOAN RATE
EURODOLLAR
.DIFFERENTIAL
FAVOR EURO DOLLAR
Z U R I C H D E P O S I T RATE V S . L O N D O N EURO D O L L A R RATE ( C O V E R E D )
I N T E R M S / O F S W I S S FRANCS
EURO DOLLAR
SWISS DEPOSIT RATE
DIFFERENTIAL
FAVOR ZURICH
FAVOR EURODOLLAR
IE PRICl OF O O I D IN L O N D O N
35.2
35.0
1964
1965
1966
0 1 , UNITED STATES/CANADA
Friday figi
3 . M O N T H TREASURY BILL RATES
C A N . F I N . CO. (PAPER
j h A j f s |
I
CANADA
UNITED STATES
I 1 1 I I I I I I I I I I I
I 1 I I
I I M
I I
1 I
II 1 I I I I I I I I I I I I I I
BILL RATE D I F F E R E N T I A L A N D F O R W A R D C A N A D I A N DOLLAR
S P R E A D I N FAVOR OF CANADA
PREMIUM
v v
/V
1
1
i
i
i
i
i
1
I
3-ArfI O N T H C O V E R E D R A T E D I F F E R E N T I A I S (h JET
Ifya*J
V
Vb V
M
xJr
T l 1EASUI IY B I L
V v V
1 i i 1 1 1 1 I |
J
S
D
M
1963
w
w s
1 1
J
* - v >
I | 1 |
S
D
1964
1
1
1
4 C E N T I V E S i)
1
FAVl IR CAN ADA
U/i y* V
A /
| P R I M E F I N A N C E PAPER
11
BISGOUNT
FORWARD RATE
V
lb
y v\
AV v a
1 | I |
M
J
1 1
S
1965
1 1
D
:
r
AVOR iU.S.
FAVI IR CAN ADA -
J1
/V
1 1
M
AVOR 1I . S .
i i 11 1 11 1
J
S
D
1966
INTEREST ARBITRAGE, NEW Y O R K / L O N D O N
Fridoy ligurei
3-MONTH
TREASURY
BILL
RATES
U.K. LOCAL AUTHORITY DEPOSITS
NEW YORK
RATE D I F F E R E N T I A L
FORWARD
AND
^
3 - M O NTH
STERLING
SPREAD IN FAVOR OF LONDON
I
I
FORWARD RATE
RATE D I F F E R E N T I A L
WITH
FORWARD
EXCHANGE
COVER
IN FAVOR OF LONDON
IN FAVOR OF NEW YORK
I I I II I II I II I III II
(NET
INCENTIVE)
S H O R T - T E R M INTEREST R A T E S *
- U.K.
EURO DOLLAR - LONDON
U.S.
SWITZERLAND
JAPAN
GERMANY
CANADA
U.S.
1962
1963
1964
1965
3 month Ireoivr y bill rotes io* a 11 cooolnet e«c<*pl Jop on fAverorje role on hunk loons ond discounts)
Switzerland f 3 month deposit ro»«) ond G n m p n , (inter honk loon R ote\
*™~
j 3 month rale for U S dollar deponis m london
1966
L O N O - T I t M BOND YIELDS
Weekly figurei
GERMANY
EURO DOLLAR BONDS
U.S.
CANADA
NETHERLANDS
U.S.
SWITZERLAND
1962
1963
*A«eroge el yields ler levr foreign government
1964
bondi quoted in London
1965
s j i O l EXCHANOE * * " $ - M A J O R CURRENCIES A G A I N S T U.S. D O H A *
1.6
SWISS FRANC
GERMAN MARK \
U.K. STERLING
—i
r
BELGIAN FRANC
FRENCH FRANC
DUTCH GUILDER
ITALIAN LIRA
I
\ CANADIAN DOLLAR
JAPANESE YEN
1964
1965
1966
1 0
3 - M O N T H FORWARD EXCHANGE RATES
Friday liguret
AGAINST U. S. DOLLARS
PREMIUM*
GERMAN MARK
SWISS FRANC V
I
POUND STERLING "
DISCOUNT-
AG AIN ST POUND STERLING - L O N D O N
PREMIUM*
j\\
SWISS FRANC
- G E R M A N MARK
U. S. DOLLAR
AGAINST POUND STERLING - LONDON
PREMIUM
DUTCH GUILDER
BELGIANFRANC
FRENCH FRANC
M
J
DISCOUNT-
S
1964
D
M
J
1965
s
0
M
I
1966
$
0
INDUSTRIAL
STOCK
INDICES
t a l i * icole
300
SWITZERLAND
250
GERMANY
U.K.
200
U.S.
150
100
300
250
JAPAN
200
CANADA
150
100
1963
1964
S
w
l
i Bonk Corporation induilriol Hock index
Japan index ol 225 indusir.al and other Hocki traded on the Tokyo exchange
1965
1966
May 4, 1966.
H. 13
No.246
Latest Figures Plotted in H.13 Chart Series, 1966
(all figures per cent per annum)
II.
Upper Panel
Chart 1
(Wednesday,
April 27 )
Euro-$ Deposit
5. 75
U.S. certif. of deposit
5. 31
)
29
5. 25
5.88
6. 11
Finance co. paper:
U.S.
Canada
Hire-purchase paper, U.K.
90-day
180-day
Upper Panel
Chart 3
(Period:
April 15-23 )
6
Net incentive (U.K. + )
+0. 05
March 15
)
4.00
35.126
)
Chart 4
(Friday, April 29
)
Canada
U.S.
Spread favor Canada
4.94
4. 61
+0. 33
Forward Canadian $
- 0 . 15
Net incentive (Canada + )
+0. 18
Canadian finance paper
4. 61
5. 49
4. 94
U.S.
U.K.
Canada
Zurich 3-mo. deposit
fDate: March 15
Japan composit rate
("Date: February 28
6. 00
5. 75
)
4. 00
)
7. 570
)
4. 63
U.K. War Loan (Thurs.,Ao ;.28)
6. 80
German Fed. (Fri., Apr
Swiss Confed. (Fri., Apr
Canadian Gov't.
Treasury bills:
)
U.S. Gov't. (Wed., Apr. 27
5.
Zurich 3-mo. deposit
Price of gold
(Friday, April 15
-0. 83
Chart 7
-0 0
81
Euro-$ deposit (average)
(Date:
Forward pound
Interbank loan rate (German)
(April 23)
Euro-$ deposit (London)
5.49
Interbank loan (mid-point)
Lower Panel
+0. 88
5. 75
6.05
Hire-purchase paper
(April 15)
Local-authority deposit
(April 15)
5. 49
61
U.K.
U.S.
Spread favor U.K.
Treasury bills:
Euro-$ deposits:
5.31
5.50
5.56
Treasury bills:
)
Chart 6
(Fridav. April 29
Chart 2
(Friday, April 29 )
Call
7-day
30-day
Chart 5
(Friday, April 29
5. 75
15
)
7. 98
22)
3. 91
(Wed. , Apr. 2 /)
5., 66
Netherlands Gov't perpetual 37.
(Fridav. Apr. 22
)
5 85
F.uro-S bonds (Fri. . Apr. 29 )
6,, 23
For descriptions and sources of data,
see special supplement to H.13,
Number 239, March 16, 1966.
@FedFRASER