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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 H. 13 No. 274 BOARp OF GOVERNORS November 16, 1966 (CAPITAL MARKET!DEVELOPMENTS ABROAD I. II. Ten C h a r t s on F i n a n c i a l Markets Abroad L a t e s t F i g u r e s P l o t t e d in H.13 Chart S e r i e s , 1966 Ten C h a r t s on F i n a n c i a l Markets Abroad Chart 1 Chart 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 C h a r t 10 New York, London, M o n t r e a l : Y i e l d s f o r U.S. D o l l a r I n v e s t o r s on 3-month Funds London: Y i e l d s f o r U.S. D o l l a r I n v e s t o r s on 3-month Funds I n t e r e s t Arbitrage: Frankfurt/London, Zurich/London I n t e r e s t A r b i t r a g e : New York/Canada I n t e r e s t A r b i t r a g e : New Vork/London S h o r t - t e r m Bond Y i e l d s Long-term Bond Y i e l d s Spot Exchange R a t e s - - M a j o r C u r r e n c i e s Against U.S. D o l l a r 3-month Forward Exchange R a t e s I n d u s t r i a l Stock I n d i c e s Europe and B r i t i s h Commonwealth S e c t i o n . OFFICIAL USE ONLY ( D e c o n t r o l l e d a f t e r s i x months) z> NEW YORK/ YIELDS DOLLAR FOR LONDON, U.S. MONTREAL: DOLLAR DEPOSIT RATES: INVESTORS NEW ON 3-MONTH FUNDS YORK-LONDON EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T J I , EURO DOLLAR 0VER„ ] I 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 CANADIAN FINANCE COMPANY U.K. HIRE P U R C H A S E U.S. FINANCE COMPANY Mar. Jun. 1964 Sept. Dec. Mar. iun. 1965 Sept. Dec. Mar. [un^ 1966 Sept. Dec. LONDON: EURO YIELDS FOR DOLLAR DEPOSIT U.S. DOLLAR INVISTOR-S ON 3-MONTH FUNDS RATES 180 DAY DAY CALL 30 [HIRE PURCHASE A N D LOCAL DAY AUTHORITY D E P O S I T RATES ( c o v e r e d ) , EURO DOLLAR DEPOSIT HIRE PURCHASE DIFFERENTIAL FAVOR HiRE p W c t t A S E l FAVOR E U R O D O L L A R OCAL AUTHORITY DEPOSIT EURO DOLLAR DEPOSIT DIFFERENTIAL FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR 1964 1966 1 H [INTEREST ARBITRAGE: FRANKFURT INTERBANK FRANKFURT/LONDON, LOAN RATE VS. ZURICH/LONPONi L O N D O N EURO DOLLAR IN INTERBANK LOAN RATE TERMS (COVERED) O p l RATE EURO-DOLLAR 1 r DIFFERENTIAL | ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE IN FAVOR EURO-DOLLAR (COVERED) 'NCS T E R M S / O V W K EURO-DOLLAR S W I S S DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR EURO-DOLLAR H PRICE OF G O L D IN LONDON u s d.iior 35.2 35.0 1964 1965 1966 INTEREST ARBITRAGE, 3-MONTH UNITED TREASURY BILL STATES/CANADA RATES C A N . F I N . CO. ( P A P E R CANADA UNITED S T A T E S BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR S P R E A D IN FAVOR OF CANADA DIS uOJ F O R W A R D RATE 1 1 3-MONTH 1 1 1 COVERED RATE 1 1 1 DIFFERENTIALS 1 (NET 1 1 1 INCENTIVES) FAVOR CA PRIME FINANCE PAPER FAVOR U.S FAVOR CANADA TREASURY BILLS FAVOR U.S. Li 1 1 I M I 1963 INTEREST ARBITRAGE, NEW Y O R K / L O N D O N Friday ligurei 3-MONTH TREASURY BILL RATES LONDON U.K. LOCAL AUTHORITY D E P O S I T S o > NEW YORK E DIFFERENTIAL WARD r —| AND STERLING 1 1 I ,1 1 Xz 1 S R R E A D IN 1FAVOR OF L( ) N D 0 N 1 r - i 3-MONTH . i L 1 h ^v/ F'REMIUI 1 V " X - VJ 1 1 RATE i f• O R W A RD 1 I I I 1 1 DIFFERENTIAL 1 1 WITH 1 v RA iTE 1 1 1 1 FORWARD l 1 ; A v/ fv V -'V L< 1 1 i 1 1 COVER 1 1 (NET 1 1 1 1 1 1 INCENTIVE) IN F A V O R OF L O N D O N IN F A V O R OF NEW YORK 1963 1964 H 11 — 1 1 [HSCOU* w 1 EXCHANGE > V\ - 1965 1966 1 1 0 SHORT-TERM INTEREST RATES * U.K. EURO-DOLLAR - LONDON US SWITZERLAND JAPAN GERMANY ysn' CANADA U.S. 1962 1963 1964 965 3 month t r a o t u r y bill rotes for oil counlriei e x c e p t J o p o n ^ A v e r a g e rote on bank l o a m ond d i s c o u n t s ' ) S w i t z e r l a n d ^ ] month deposit r o t e T a n d G e r m a n y ( i n t e r b a n k L o a n R o t e ) • 3 month role for U S dollar deposits in London 1966 LONG-TERM BOND YIELDS GERMANY EURO DOLLAR B O N D S * NETHERLANDS CANADAl -y — r p v U.S. SWITZERLAND 1962 1963 1964 */Averoge of yieldi for four foreign government doilor bonds quoted in London 1965 1966 SPOT EXCHANGE RATES - M A J O R CURRENCIES A G A I N S T U.S. DOLLAR Above pof 1.6 S W I S S FRANC G E R M A N MARK f/V U.K. STERLING BELGIAN FRANC FRENCH FRANC DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA JAPANESE YEN J s 1964 D J 1965 s D 1 1966 S 3-MONTH AGAINST Friday figures F O R W A f t D J E X C H A N G E RATES U.S. DOLLARS —NEW YORK_ P#r cent p#r G E R M A N MARK ' S W I S S FRANC i V POUND STERLING DISCOUMT- T PREMIUM* DUTCH GUILDER FRENCH FRANC C A N A D I A N DOLLAR DISCOUNT- A G A IN ST POUND STERLING — L O N D O N Friday figurei Pi S W I S S FRANC ' ra G E R M A N MARK U . S . DOLLAR DISCOUNT- M S I 1964 D M J 1965 S 0 M J 1966 S D INDUSTRIAL STOCK INDICES Ratio scale 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 100 300 250 JAPAN 200 CANADA 150 100 1963 1964 5W.II Book Corporation induitrial itock index Inpon: <n de * of 2 2 5 induitrial and other stocks traded on the Tokyo 1965 1966 November 16, 1966 H. 13 No. 274 II. Latest Figures Plotted in H.13 Chart Series, 1966 (all figures per cent per annum) Upper Panel Chart 1 (Wednesday, Nov. _) Euro-$ Deposit 6.75 U.S. certif. of deposit 5. 73 Lower Panel (Friday, Nov. Treasury bills: 5. f 6.57 6. 81 U.S. Canada Hire-purchase paper, U.K. 6.25 6.38 6.56 + 1 . 00 Forward pound -0.75 Net incentive (U.K. +) +0.25 6. 75 6.75 90-day 180-day 6.89 6. 74 1-7 ) Interbank loan (mid-point) 7. 24 Euro-$ deposit (average) 6. 98 Lower Panel Spread favor U.K. Treasury bills: Hire-purchase paper (Nov. 4) Local-authority deposit (Nov. 4) Chart 3 Upper Panel (Period: Nov. (Date: Oct. 15 5.38 6.38 5.08 U.S. U.K. Canada 7.24 Interbank loan rate (German) (Nov. 1 - 7 ) Euro-$ deposit (London) 6. 75 Zurich 3-mo. deposit (Date: O c t . 15 Japan composit rate (Date: S e p t . 30 7-42 ) 4 . 79 U.K. War Loan (Thura. . N o v - 1 0 ) 6.87 German Fed. (Fri., Nov. 4 8.32 U.S. Gov't. (Wed.. Nov. 9 ) 35. 154 ) Swiss Confed. (Fri., Nov. 4 ) Canadian Gov't. Chart 4 (Friday, Nov. 11 ) Chart 7 Zurich 3-mo. deposit Price of gold (Friday, Nov. 4 6.38 5.38 U.K. U.S. Chart 6 (Friday, Nov. 11 ) Euro-$ deposits:. Call 7-day 30-day 11 ) 11 Finance co. paper: Chart 2 (Friday, Nov. 11 Chart 5 (Friday, Nov. (Wed. .Nov. 9 ) 5.85 Netherlands Gov't perpetual 3% (Friday, Nov. 4 ) Treasury bills: Canada U.S. Spread favor Canada 5.08 5.38 - 0 . 30 Euro-$ bonda (Fri., Forward Canadian $ + 0. 26 Net incentive (Canada +) - 0 . 04 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966, Canadian finance paper 6.38 Nov. 11) 6.43
@FedFRASER