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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. 272 B O A R D OF Q O V E R N O R S November 2, 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 Bond Yields 7 - Long-term Bond Yields 8 - Spot Exchange Rates--Major Currencies kici-.st 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, L O N D O N , 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 (Q.DOLLAR DEPOSIT] U.S. CERTIFICATE OF DEPOSIT EURO DOLLAR OVER [ CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES ( c o v e r e d ) : QUOTED IN NEW YORK CANADIAN FINANCE COMPANY U.K. HIRE PURCHASE U.S. FINANCE COMPANY Mar. Jun. Sept. 1964 Dec. Mar. Jun. 1965 Sept. Mar. Jun. 7966 Sept. D»e. LONDON: EURO YIELDS FOR U.S. D O L L A R DOLLAR DEPOSIT INVESTORS ON 3-MONTH FUNDS! RATES 180 DAY DAY CALL 30 H I R E PUR C H A SE A N D DAY- L P CAL A U T H O R I T Y D E P O SIT R A T E S ( c o v e r e d ) : EURO-DOLLAR DEPOSIT HIRE PURCHASE DIFF ERENTIAL FAVOR H I R E P U R C H A S E FAVOR E U R O - D O L L A R LOCAL AUTHORITY DEPOSIT EURO-DOLLAR DEPOSIT DIFFERENTIAL T T FAVOR LOCAL AUTHORITY FAVOR EURO-DOLLAR 1965 1966 1 [INTEREST A R B I T R A G E : FR A N K F U R T / L O N P 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 D O L L A R RATE ( C O V E R E D ) I I N TERMS O r D M _ INTERBANK LOAN RATE EURODOLLAR ^ v 1 v ^ w r FAVOR EURO-DOLLAR I I I I I I N I I I 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 ) NCS 6 SWISS DEPOSIT RATE 1 1 DIFFE R E N T I A L 1 FAVOR ZURICH FAVIBR EURO 1DOLLAR " n l E 1 1 1 1 1 M 1 1 \/f\ 1 1 1 1 1 1 1 1 1 1 1 I PRICI o r OOLD I N L O N D O N 1 1 1 1 U.S. dollar equivalent per Fine ounce 35.2 I I 1 I I I I I I I I 1964 1 I I 35.0 I I I I I 1965 1966 INTIEEST A R B I T R A G I , U N I T 3 -MONTH IfiCASU ES 6 CAN FIN. CO. IPAPER 4 CANADA ^ " 1 UNITED STATES BILL RATE DIFFERENTIAL AND FORWAR ) C A N A D I A N DOLLAR SPREAD IN FAVOR OF CANADA 0 t — OISI FORWARD RATE 1 I I I I I I I I I I I 3 - M O N T H COVERED RATE DIFFERENTIALS (NET INCENTIVES) 0 AVOR U S FAVOR CANADA 0 H i S O M 1963 J S 1964 D M J S 1965 D M FAVOR U.S. I I I II I II J S O 1966 1 INTEREST ARBITRAGE, N I W Y O R K / L O N D O N Friday figures 3 - M O N T H TREASURY BILL RATES LONDON U.K. LOCAL AUTHORITY DEPOSITS NEW YORK RATE DIFFERENTIAL AND 3 . M O N T H FORWARD STERLING I I I I SPREAD IN FAVOR OF LONDON PREMIUM DISCOUNT FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN FAVOR OF LONDON IN FAVOR OF NEW YORK 1963 1964 1965 1966 SHORT-TERM INTEREST RATES * U.K. EURO-DOLLAR - LONDON nc^Z.i SWITZERLAND / \ y JAPAN GERMANY CANADA U.S. 1962 1963 Switzerland'^ monlh deposit raiej "oTTd Ge r many | i 3 monlh rate for U S dollar deponls in London 1964 (Tn ler bank loan Role) 1965 1966 9 LONG-TERM BOND YIELDS GERMANY: / EURO DOLLAR BONDS: NETHERLANDS CANADA U.S. SWITZERLAND 1962 1963 1964 */4»»rog» of yield* for four foreign government dollar bond# quoted in London 1965 1966 A I P O T EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.6 SWISS FRANC GERMAN M A R K \ f/V U.K. STERLING FRENCH FRANC 1 H BELGIAN FRANC r w DUTCH GUILDER ITALIAN LIRA CANADIAN DOLLAR JAPANESE YEN 1.2 1964 1965 1966 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS —NEW YORK GERMAN MARK 1 SWISS FRANC | V POUND STERLING DISCOUNTPR EM IUM + DUTCH GUILDER RENCH FRANC CANADIAN DOLLAR DISCOUNTA G A INS T PO UN D S T E R L I N G - L O N D O N SWJSS FRANC GERMAN MARK ra U.S. DOLLAR DISCOUNT-. 1964 1965 1966 ' INDUSTRIAL STOCK INDICES I olio icol# 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 100 300 250 JAPAN 200 CANADA y ^ _ / U.S. 150 100 1963 1964 Swui Bonk Corporation industrial Hock inde* Japan inde* of 22 5 industrial and other slocks traded en the Tokyo exchange 1965 1966 November 2, 1966 H. 13 No. 272 II. Latest Figures Plotted in H.13 Chart Series, 1966 (all figures per cent per annum) Upper Panel Chart 1 (Wednesday, Oct. 26 Euro-$ Deposit 6. 75 U.S. certif. of deposit Lower Panel ) (Friday, 6.91 6.92 6.75 6.75 90-day 180-day Interbank loan (mid-point) 7.19 Price of gold (Friday, Oct. 21 ) +0.49 ) Treasury bills: U.S. U.K. Canada "%35" 5.05 7.19 (Oct. 16-23) Buro-$ deposit (London) 6. 75 Zurich 3-mo. deposit (Date: Aug. 15 4.25 Japan composit rate (Date: June 30 7.49 Chart 7 6.87 4.25 German Fed. (Fri., Oct. 21 ) 7.93 35,161 Swiss Confed. (Fri., Oct.14 ) 4-09 Canadian Gov't. 5,76 (Friday, Octc 28 Treasury bills: Canada U.S. Spread favor Canada Forward Canadian $ +0.24 Net incentive (Canada +) +0.08 Net incentive (U.K. +) U.K. War Loan (Thurs. ,Oct^27) Chart 4 Canadian finance paper -0. 65 4.65 .98 August 15 Zurich 3-mo. deposit +1. 14 U.S. Gov't. (Wed., Oct. 26 V Euro-$ deposit (average) (Date: Spread favor U.K. Forward pound Interbank loan rate (German) Hire-purchase paper 7.11 (Oct. 21) Local-authority deposit 6. 86 (Oct. 21) Chart 3 Upper Panel (Period: Oct. 16-23 ) Lower Panel 6.35 5.,21 U.K. U.S. Chart 6 (Friday, Oct. 28 ) Euro-$ deposits: 6.25 6.50 6.62 ) ) 5.88 U.S. Canada Hire-purchase paper, U.K. Call 7-day 30-day Treasury bills: 5.80 Oct. 28 Finance co. paper: Chart 2 (Friday, Oct. 28 Chart 5 (Friday, Oct. 28 6.25 (Wed. .Oct, Netherlands Gov't perpetual 31 (Friday, Oct. 21 ) 5.91 Euro-$ bonds (Fri., Oct. 28 ) 6.58 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966.
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