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DIVISION OF INTI BOARD OF OOVERNORS NOV 1 9 N=3 37a CAPITAL MARKET DEVELOPMENTS ABROAD I. II. November 13, 1968. Ten Charts on Financial Markets Abroad Latest Figures*Plotted in H.13 Chart Series, 1968 ! ' ifiTa- Ten Charts on Financial Markets Abroad Chart Chart 1 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London: Yields on U.S. Dollar 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. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS NEW Y O R K - L O N D O N : YIELDS O N U . S . DOLLAR FUNDS 3 - M O N T H DOLLAR DEPOSIT RATES Wednesday figures Per cent per EURODOLLAR DEPOSIT U.S. CERTIFICATE I F REPOSW i. EURO-DOLLAR OVER V S. CERTIFICATE OF DEPOSIT CALL EURO-DOLLAR DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE CALL EIRO-HLLAR DEPOSITS FEDERAL FVTTS T In Sept. 1005 In. Sept. 1000 III. 1007 Sept. Sept 1000 L O N D O N ; YIELDS EURO-DOLLAR FOR U.S. DOLLAR I N V I S T O R S O N 3 - M O N T H FUNDS DEPOSIT RATES 30 DAY CALL I N DAY DD DAY M J S I 1915 • J ID## t • • I 1DS7 S t • ) IDS# S • H LONDON: YIELDS FOR U.S. HIRE PURCHASE A N D Friday figures DOLLAR LOCAL INVISTOKS ON AUTHORITY 3-MONTH FUNDS D E P O S I T RATES ( c o v e r e d ) Per cent per annum EURO DOLLAR DEPOSIT. HIRE P U R C H A S E FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR E U R O D O L L A R 1 . I E M # M I L A * DEPOSIT » \ A T — V _ LOCAL ATFTMLIITY DEPOSIT f \r * r~ A Mr V A I - DIFF ERENT IAL 1 1 I M 1 1 1 1 1 J $ I I I D I l • IMS l l J IMS l l S I l I l , l • I I I 1M7 I , S l i I I l II I I r i s e ( i n * •LLAR I ItM S • I INTEREST ARBITRAGE: F R A N K F U R T / L O N D O N , FRANKFURT INTERBANK LOAN RATE V S . ZURICH/LONDON LONDON EURO DOLLAR RATE ( C O V E R E D ) I I IN TERMS f OF DM EURO-DOLLAR FAVOR FRANKFURT I I ZURICH DEPOSIT RATE V S . L O N D O N FAVOR EURO-DOLLAR I I I I I I I EURO-DOLLAR RATE ( C O V E R E D ) IN TERMS O F SWISS FRANCS SWISS 9 E F 9 S I T RATE rww D I F F I E R E N T I IA L V 1 1 1 1 \VA I v\ r 1 1 1 1 1 l 1 1 1 1 i M i i r>J V i ZWHOI 1 1 i i 1 1 i i i ' N 1 EVRt-l SLLAR U.S. ieller eiwi»ele*l Mr fiee < 35.5 4S.I ,5.4 43.1 ,3.3 41.# 35.2 31.# 35.1 35.0 37# J—L M J $ I I I l I I I • INS Market cleied Merck 13A»ril 1, - IMS. J I M I I I I I I I I 35# _L_L I IH7 i 19## „ " INTERST ARBITRAGE, Friday figures 3-MONTH TREASURY UNITED BILL STATES ' V / C A N A D A per° cenl RATES CAN. FIN. ! UNITED CO. PAPER STATES /V ^ILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR PREMIUM SPREAD IN F A * # # TF CANADA F O R W A R # RATE 3-MONTH COVERED RATE DIFFERENTIALS (MET TRIASVRY * V PTWE - W INCENTIVES) FAVOR C A N A D A RILLS 4 - FINANCE PAPER I F A V S * M.S. U.S. 1965 IMS 1*7 1911 2 r> IN 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK 1905 1001 IN7 111! EREST ARBITRAGE, NEW YORK/LONDON 4 DIFFERENTIAL AND 3-MONTH FORWARD STERLING SPREAD IN FAVOR OF L O N D O N 2 PREMIUM 0 DISCOUNT FORWARD RATE 2 4 6 8 10 2 0 II F A V N I F NEW Y H I 2 4 • RATE 1815 fill 1H7 1HI SHORT-TERM I N EURO DOLLAR - L O N D O N t 9 JAPAN CANAIA I • S V z V / 1919 1914 >3.month treeivry hi* reies f t «N cmmmtrm #« *#« Switzerland (J-MWli rete) end Swainy "j"3 monlh rate for U.I. d*N«f <•#••»» in 1997 rata M hern* lew* mm4 *ece«iHi) (kHerkent l»»# *«#») 1HI LONG-TERM BOND YIELDS Weekly figures Per cent per annum NETHERLANDS CANADA SWITZERLAND 9 I.K. I S. E M T M I L M IS. 1914 • • • • IMS Average el yields Ur fevr tereisw New series U» Ger*eey »lerl» 7-f-43 • New series fer Swilierlewd iterls 1-3-47 » • New series fer Netkerlends slerts 1-7-M * * • New series for Switzerland starts 8-2-68 ISM teller k m * eeefed in leeiee. >. A M M M S 1M7 Chart 8A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Per c v 1.6 SWISS FRANC 4 f GERMAN MARK Par with U.S. U.K. STERLING Below par Above par DUTCH GUILDER with US, J FRENCH FRANC — JAPANESE YEN Below par M J S D M 1966 'Devaluation of the pound sterling from $2.80 to $2.40. J 1967 S D M J 1968 S D M J 1969 S D Chart 8B SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.2 BELGIAN FRANC ITALIAN LIRA U.S. • < U 1 CANADIAN DOLLAR Below par M J S D 1966 J 1967 S D M J 1968 S D M S 1969 D i Chart 9A 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS-NEW YORK Per cent per a n n u m Friday figures ! • I ! . ! ! G ! | SWISS FRANC \^ j ' 1rVr i i i DISCO U N T i l l 1 1 1 1 ! ! I M I 1 1 I 1 II 1 II 1 i i | r f POUND STERLIIng 1 ' | M TVAX V > | 1 1 i 1 1 1 1 1J 1 1 1 1 PREWIIUM + j l | ! DUTCH GUILDERAz r w * X V V A I < / X 4 r r CANAl)IAN DiOLLAR | • i j ! | 1FRENCH1 F R A N Ic ! 1 1 M M M J 10 DISCOlJNT— i I S 1 D 6 V ! i |• | 1 PREMIUM + 1 1 M 1966 1 1 1 J 1967 1 S 1 1 D 1 1 1 M 1 j 1 J 1968 1 S 11 i 11 D M I i J 1969 I 1 S 1 D \VL Chart 9B 3-MONTH FORWARD EXCHANGE RATE ^ AGAINST POUND STERLING-LONDON Friday figures Per cent per annum PREMIUM + GERMAN MARK U S. DOLLAR T SWISS FRANC £ FRENCH FRANC DISCOUNT— M J S D M 1966 J 1967 S D M J 1968 S D M J 1969 S D INDUSTRIAL STOCK INDICES )95fl )00 J 360 : 320 | 280 | 240 U.S. 200 •EMMY U.K. 160 120 360 320 24# VS. # SwiH lank Cerpereiiee i»*»etriel slack ladaa. # * Japan index ef 223 —4 s*#«&, M Hw Tmkf h«a*». 110 W H. 13 No. 376 November 13, 1968. II. a. Latest Figures Plotted in H. 13 Series (all figures in per cent per annum) Chart 1 Chart 4 Upper Panels (Wednesday, Nov. 6 Euro-$ deposit ) (Friday, Nov. 8 Treasury bills: Canada 6.56 5.45 U.S. U.S. certif. of deposit 6.03 Lower Panels (Wednesday, Spread (favor Canada + ) +0.04 Forward Canadian dollar -0. 63 6.41 Net incentive (Canada + ) -0.59 6.07 Canadian Finance paper (Nov. 8) Nov. 6 Call Euro-$ deposit Federal Funds ) Chart 5A (Friday, Nov. i3 Chart 2A Nov. 8 Euro-$ deposits (Friday, Upper Panel T.owpr Panpl 5.41 Call 6.50 ) 6.38 ) U.K. Local Authority deposit 6.94 Treasury bills: 6.41 5.41 U.K. U.S. 30-day 6.44 90-day 6.68 Spread (favor U.K. +) 180-day 6.68 Forward rate „ -0.89 Net incentive (U.K. + ) +0. 11 Chart 5B 4-1. 00 Chart 2B Hire-Purchase ( Nov. 1 ) __ 6.35 Local Authority ( Nov. 1 ) 6.07 Euro-$ deposit ( Nov. 1 ) 6.59 Upper Panel Chart 3 I. Upper Panel (Period: (Friday, Treasury Bills Nov. 8 U.S. U.K. Canada Euro-$ deposit (London) Nov. 1-7 ) ) 5.41 6.41 5.45 6. 68 Lower Panel Interbank Loan (mid-point) 4. 40 German Interbank loan rate ( Nov. 7 ) Euro-$ deposits (average) 4.13 Zurich 3-month deposit (Oct. 31) 4.00 Lower Panel (date: Oct. 24-31 ) Zurich 3-mo. deposit 4.00 Euro-$ rate (covered) (Nov. 7 ) 5.01 II. Price of Gold (London) 39.36 (average-week ended Nov. 8 ) 4.40 Japan Composite Rate ( Sept. 30 ) 7.43 U.S. Treasury bills ( Nov. 8 ) 5.41 H. 13 II. b November 13, 1968. No. 376 Chart 7 Chart 9A Upper Panel (Friday, U.S. Gov't. (Wed. , Nov. 6 ) 5.32 Nov. 8 Against U.S. dollars Upper Panel Netherlands Govt. (Fri.,Nov. 1 ) 6.50 Canadian Gov't. (Wed., p c t. 30 ) 7.02 Swiss Gov't. Composite (Fri. , Nov. 1 ) 4.38 Swiss francs +0.98 German marks +2.50 £ sterling -0.89 Lower Panel Middle Panel German Fed. , (Fri., Nov. 8 ) 6.21 U.K. War Loan (Thus.,Nov. 7 ) 7.63 Euro-$ bonds (Fri., Nov. 8 ) 7.56 French franc Dutch guilder +0.76 Canadian dollar -0.63 Chart 9B (Friday, Nov. 8 Lower Panel ) Against pound sterling U.S. Euro-bonds (Sept. 30 (Oct. 31 U.S. Corporate Aaa (Oct. 31 Chart 8A (Friday, Nov. 8 ) ) ) 7.07r 7.20 6.09 Upper Panel German mark +3.53 U.S. dollar ) Upper Panel Swiss francs + 1.68 German marks +0.69 U.K. £ sterling -0,43 French francs -0. 76 Dutch guilders -0.50 +0.49 Belgian francs -0.29 Canadian dollars +0.77 Italian lira +0.33 +0. 36 Chart 10 (Index; 1958 = 100) Upper Panel Nov. 8 Germany (_ 273.4 Oct. 31 267.4 Switzerland ( Nov. 8 ) Nov. 8 ) dated March 27, 1968. 229.2 Canada ( Oct. 31 ) 218-1 Japan ( Nov. 8 ) 295.6 For descriptions and sources of data, see Special Supplement No. 343-S 350.4 Lower Panel U.S. ( Chart 8B (Friday, Nov. 8 ) +1. 67 Swiss franc French Franc U.K. ( Lower Panel J a p a n e s e yens +0. 80 Lower panel
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