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m. tut zi wntu.m fk f & * ! & > • SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. MEEKLY SEMES OF CHARTS F W T H I o r THE rapaunatm «WM TABLE OF CONTENTS PARTI. EXCHAUGE RATES AMD GOLD PRICES Chart 1A and 8 - Spot Exchange Rates, Major Currencies against U S. Dollar Chart 2A and B - 3 Month Forward Exchange Rates, Major Currencies against U S. Dollar Chart 3A and B - 3 Month Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Chart 5 - Call Money Rates Chart 6A and B - London: Euro-S Deposit Rates Chart 7A and B - Hear York - London: Yields on U S. Dollar Funds Chart 8A and B - London: Covered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B - Interest Arbitrage: U.S.-Gemtany and U.S.-SwKzerland Chart 11 - Interest Arbitrage: United States-Canada Chart 12A and B - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Tern Bond Yields • Industrial Stock Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, erfiich was piMshed under that title through December 31,1%6. The changes in the format and order of the charts are eKplaimed MI the Supplement to the series, which arrompanied issue dated January 1,1%9. All series and their sources are fully described in a Supplement dated January 1,1972. m o SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages M rnJ «! GERMAN MARK fdJX. POUND 1 ~ \ / V Central rale US dollar V SWISS FRANC 1 ! I 1 ! DUTCH GUILDER r-4 VS/i7\ V / / FRENCH FRANC i i ! i i 1 i i 1 i i _ 1 i V rate against US. ; J JAPANESE YEN ! \ i i 1 i i i i 1 i i 1 J 1972 "Pound floated June 23, 19/2 1973 i i 1 . _i . i. f j S Chart I B SPOT EXCHANGE RATE MAJOR CURRENCIES AGAINST US. POilAR Weekly awerafes 1 • l M jWELGUM FtAMC JM A / ITALIMI UEA 1 1 1 1 1 1 1 1 1 1 i 1 i 1 i i 1 i i 1 i i 1973 1972 Ratio scale. U S cents Ratio scale. U S cents v — . CMM0MM DOLLAR - UJLPOUm 260 - - 240 i i ; i i I i i 1 i i M J s D 1970 f i i 1i i 1i I i I I i i i i i i i i i i i M J S 1971 D K J S 1972 D i 1 11 1111 1 1 11 l J S 1973 D Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST US. DOLLAR May 11. 1971 - Dec. 17, 1971 Weekly averages Per cent Above par GERMANY NETHERLANDS JAPAN U.S. MAY JUNE JULY AUG. SEPT. 1S71 * Financial franc OCT WW. DEC. SPOT EXCHANGE HATES - MAJOR CURRENCIES AGAINST US. DOLLAR •tor 11. 1971— Dec 17. 1971 2 / • f o r ctari* Mm Mrtetf M i l « M H that m 1C 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent per annum PREMIUM , CANADIAN DOLLAR U.K. POUND DISCOUNT GERMAN MARK PREMIUM- DUTCH GUILDER DISCOUNT 1970 * Canadian Dollar Rate not supported by Bank of Canada * * No quotation I I I I I I I I 6 Chart 26 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US, 0OLUR Weekly averages I 1 1 I 1 1 I ' 1 I 1 ' ' I LL..M.1 M ' I ' | i i | ii | i i ) M DISCOUNT 1 * Devaluation of the French franc from 4 94 to 5 55 for $ 1 0 0 * * No quotation | i i | i i | ig Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UK. POUND Per cent per annum 20 U5. DOLLAR I 11I I I 1I 1I I 11 I 1 I I I I I 1 I I I 1 I 1I I I I I I I I I 1I I I I I 1I I I I No quotation )$0 Chert 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST UJC POUND Friday figures Per cent per annum PREMIUM SWISS FRANC FRENCH FRANC J s D 1969 S 1970 * Devaluation of the French franc from 4.94 to 5 55 for $1 00 J 1971 s 0 M J 1972 s 0 Chart 4 GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon fixings U S dollar equivalent per fine ounce i i- - A I f- !i i ' [ ! r i i ' i i ! i i : ; i J S 1 1! ! 1! 1i i i i D 1969 M J S 1970 D 1 I 1 I 1I 1 1111 M J S 1971 D J - i i i M W ' J i i i i i ii S 1972 CHART 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages 1 1 1 iFUMMMUA R DEPOSITS -if - 1 j ^ x u vjl - FEDCRAL FUNDS 1 EUNO-DOLLAR OVER fEOEXAL FUNDS I i i 1 i i 1 i i 1 i i 1 1 1 1 1 1 1 1 1 I 1 i 1 1 1 1 1 11I I 1 l I 11111111111 EURO-CURRENCIES Weekly averages Ftr cent per EURO-SWISS FRANC 1969 1970 * May 10, 1971 - Changed to Overnight Euro $ Deposits 1971 Y^° Chart 58 CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES Friday figures Per cent per annum 12 ^ JAPAN - "A 1 1 I 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 i CANADA i 1 i i 1 i i 1 i i i i ! i i 1 i i 1 i 1 I l 1 l I I M J S D M 1969 J 1970 S D M J S D M 1971 France, Day to day Money. Netherlands, Call Money, weekly average. Japan, Unconditional Money, Canada. Day to da> Loans, weekly average; Germany, Call Money,U K , 2-day Local Authority Deposits J 1972 S D i LONDON: EUMMNNXAR DEPOSIT RATES Friday figures I I I ll 1I I 1I 1 I I 1I I 1I I I I I * M a y 12/71-changed to Overnight Euro-Dollar Deposits * # July-1-changed to 7-Day Euro-Dollar I 1I I I 11I 1I l I I I M I I l I M 2 LONDON: EURO DOLLAR DEPOSIT RATES Friday figures 12 10 / V VJ A i k i to / I v V \ V\^^4*0WTH ' V V • 1 1 1 1 1 1 1 1 1 ! 1 i ; i ! I i ! i i i i I M J S D 1969 M J 1970 S D 1 1 1 I I M J 1 1 1 1 1 1 S 1971 D 1 1 1 1 1 1 1 1 1 1 1 M J S 1972 D NEW YORK-LONDON: YIELDS ON U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-SECONDARY MARKET • e o n e w a y figures Pm u s . CERTIFICATE OF DIFFERENTIAL FAVOR EURO-DOLLAR EUOO-DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT M J S D M 1969 J 1970 S D M J 1971 s D M J 1972 s D &A NEW YORK-LONDON: COST OF U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Per cent per annum Wednesday figures EURO DOLLAR DEPOSIT ADJUSTED EURO DOLLAR DEPOSIT U S. CERTIFICATE OF DEPOSIT I -L I I I I I I I I I I I I I I EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT ADJUSTED* * Adjusted for Reserve Requirement * * Ad lusted for 10% Marginal Reserve Requirement * * * Adjusted for 20% Marginal Reserve Requirement ADJUSTED * I ^ I I I I I I I 1 I I 1 I I I I I 1 \t& Chart 8A LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE AND EURO-DOLLAR RATES Per cent per annum Friday figures rv 12 \ EURO DOLLAR DCPOSfr X If A A a l r W y j j j s - HIRE PURCHASE COVERED STERUNC CO't - 1 1111111111 1 11II 1 111 11 1 1 1111111111 ,V 1 1111111111 i FAVOR STERLING CD's lA A / v y Ka/^1 h ^ > v - m - - DIFFER!ENTIAL I l l M • M i l j S D 1 1 1 1 1 M ISSF J M 1 1 1 S D IS70 * H i r e Purchase temporarily suspended as of August 11. # # Sterling Certificates of Deposit started as of August 11 i . ' f r m w r T 1 1 1 1 1 1 1 1 1 1 1 M J S 1971 O M J 1S72 S O Chart 88 LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO DOLLAR RATES Friday figures Per cent per annum EURO DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT ^ COVERED .1.1 1 - 1 -L J FAVOR LOCAL AUTHORITY FAVOR EURO DOLLAR DIFFERENTIAL 1969 1970 1971 1972 Chart 9 * INTEREST ARBITRAGE: UNITED STATES AND UNITED KMGDOM Friday figures 3-MONTH TREASURY Bl LL RATES f\f r r z * J UJL LOCAL AUTHOFLFTY DEPOSITS* \ \ OWCOVERED A , — J r " AJ /Mj^ V / L E W YORK 1 1 1 1111 1 11 1 1 1 1 1 1 1 1 1 1 I I J S D 1969 Plotted for comparison purposes M J 1970 S D 1 11 1 1 11 1 1II M J S W71 D i i 1 i j 1i i 1i i M J S 1972 Chart 9 6 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I PREMIUM i SPREAD Wi FAVOR OF LONDON FORWARD RATE DISCOUNT FAVOR LONDON DIFFERENTIAL FAVOR NEW YORK M J S D 1969 M S 1970 D M J 1971 S D M J 1972 S D 4 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE EURO DOLLAR - GERMAN MARK F R A N K F U R T I N T E R B A N K L O A N RATE VS. L O N D O N Wednesday rates EURO D O L L A R RATE Per cent per annum I N T E R M S OF D M GERMAN INTERBANK LOAN RATE EURO-DOLLAR COVERED FAVOR FRANKFURT DIFFERENTIAL FAVOR EURO-DOLLAR M J S D M 1969 ———No quotation J 1970 S D M J 1971 S D •a J 1972 s D x»XD 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - SWISS FRANC Z U R I C H D E P O S I T RATE VS. L O N D O N EURO D O L L A R RATE Wednesday rates Per cent per annum IN T E R M S OF SWISS FRANCS EURODOLLAR COVERED SWISS DEPOSIT RATE I i i I i i I i i I i i I i i I i i DIFFERENTIAL I i 1 I I I I I I I I No quotation I I 1 I I 1 ' I I • ' FAVOR EURO-DOLLAR ' • I ' ' ' 'I I ' » Chart 11 3-MONTH INTEREST ARBITRAGE: UNITED STATES - CANADA Friday figures Per cent per mum 10 - B I L L RATES s .CAN. FIN. CO. PAPER y 6 UNITED STATES TREASURY BILLS TREASURY 4 2 PREMIUM B I L L 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 D O L L A R 2 FORWARD RATE + 0 GROSS SPREAD IN FAVOR OF CANADA 2 DISCOUNT C O V E R E D RATE D I F F E R E N T I A L S 2 • 0 2 FAVOR CANADA 2 + 0 M J SS D D M 1969 J S 1970 S D DM M J 1*71 S 5 D V M JJ 1*72 S D Cb SELECTED SHORT-TERM INTEREST RATES* GERMANY I I 11 I 11 I 111 11 I 11 111 1111 I I 1 11 11 I 111 11 111 111 11 I - —- - 11111 - PAN Vt - \\us. Z\ CANADA^ - Va! 1 1 1 1 1 1 1 11 11 11 11 1 1 1 11 1I I( I M 1 1 1 1 I I I 1 I I 1 I I 1 I I1 1 1 1 1 1 1 1 1 1 1 1968 1970 • 3 month treasury bill rates for all countries except Jap«n(Average rate on bank loans and discounts) and Germany!Interbank Loan Rate) 1072 w Chart 128 SELECTED SHORT-TERM INTEREST RATES* Per cent per EURO-DOLLAR - SWITZERLAND 1968 1970 * S-mooth treasury toll rate for U.S.. Switzerland-3-month deposit rate. • • 1 month rate for U.S. dollar deposits to London 1972 Chart 13 LOWCTEMI B O W VELDS Weekly figure* Per cent per annum US SWITZERLAND r- ^ 11 Ui(. u s. US Aaa BONOS ». OM EURO-60IIDS 1*70 # 10 U S. CORP DOHA* EUROBONDS Monthly figures 1971 1972 Mew series for Switzerland starts 6 2-66. U S Corp Dollar Euro Bonds end U S Corp DM Euro Bonds starts 12 70 * * We* Awerage yield of ell German PA Bends begins 1 7-69 * * * New series F star*' I T " 1958=100 Ratio scale 280 UNITED STATES J . 200 1 1 1 1 1 i ' 11 iVVl 1 1 1 1 1 1 I 1 L_ i i 1 i i 1 i I 1J—1— 1 1 1 1 1 1 1 1 1 1 1 SWITZERLAND r 360 v UNITED KINGDOM f 240 r I i , , : , I 1 1 ! 1 1 ! 1 ! | | ! i 1 1 1 i 1—1—1—1— 360 240 1969 1970 1971 • Japan index of 225 industrial and other stocks traded on Tokyo exchange^ r* japan index of all industrial and other stocks traded on the first ' ' section of" the Tokyo Stock Exchange. 1972 November 2?# 1972 H. 13 No58S Country IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since E.E.C.: Belgium France 4.0 6.50 March 2 , 197: November 2,1972 4.5 Feb. 5 . 1972 5.75 A p r i l 6 , 1972 Gensany 4.0 3.5 O c t . 9 , 1972 Italy 4.0 A p r i l 1 0 , 1975 4.5 O c t . 1 4 , 1972 Netherlands 4.0 November & 1972 3.0 S e p t . 8 . 1972 ii H it Switzerland 3.75 S e p t . 1 5 , 196$ 3.0 United Kingdom 6.0 June 2 2 , 1972 5.0 J u l y 1 0 , 1967 S e p t . 3 , 1971 Canada 4.75 O c t . 2 5 , 1971 5.25 Feb. 2 4 , 1971 Japa* 4.25 June 2 4 , 1972 4.75 A p r i l 2 9 , 1971 United States 4.50 Dec. 1 3 , 1971 4.75 Nov. 1 1 , 1971 • • E f f e c t i v e October 1 3 , 1972, t h e Bank o f England r e p l a c e d i t s t r a d i t i o n a l Bank Rate v i t h a f l u c t u a t i n g "minimum l e n d i n g r a t e " based on average T r e a s u r y b i l l tender r a t e . October 27, 1972 . . . 7 . 5 0 IV-2 L A T E S T FIGURES P L O T T E D ON T H E CHARTS Chart Panel 1A Upper Series Date Swiss franc Nov. U . K . pound Lower IB Upper 2A 2B A c t u a l Rate Upper 17 " French franc " Japanese y e n " +2.305 B e l g i a n franc .. +1.677 Italian lire " A c t u a l Rate -0.543 101.43 " German mark " +0.433 Dutch guilder " +0.420 German mark " +1.74 Swiss franc " +1.82 U . K . pound " -2.71 +1.44 Canadian d o l l a r " +0.11 French franc " -1.18 Japanese yen " Dutch guilder Lower 3A 1 NA it German mark 44.38 +2.07 U.S. d o l l a r 3B 4 5A Swiss franc " French franc •» Overnight Euro-S deposits Middle Lower +1.16 j | Differential " Euro-currencies: Euro DM Japan, U n c o n d i t i o n a l Money 15 4.80 4.89 -0.09 Nov. 17 3.88 Nov. 17 3.88 10 4.38 2.44 " Nov. 7.56 i U . K . , 2-day L o c a l Author. Deps. 1 Canada. Day-to-day Loans Nov. 8 3.65 6.12 " France, Day-to-Day Money Nov. 10 j Germany Nov. 17 5.62 J Netherlands Nov. 3 3.38 Lower L Nov. •• Euro Swiss FT. Upper 61.67 Federal Funds j 56 +3.02 Gold price, U.S. dollar per ounce Upper +1.011 234.89 +1.549 Canadian d o l l a r Lower Rate C a l l Money C a l l Money i IV-3 Chart Panel Series 6A Date Euro-S 68 Mov. 17 Euro-S 1-month Rate « Euio-S 3-month Rate M 78 Upper Euro-S 3-month Deposits Mov. 15 A A6 5.69 H Lower Differential « Upper Euro-S 3-«onth Deposits H Euro-S 3-month Deposits (Adj.) II 7.11 U.S. Certificate of Deposits (Adj.) « 5.39 Differential: on Adj. Euro-S Deposits «• Upper Euro-S 3-month Deposits Differential Upper Euro-S 3-month Deposits 5.69 +1.72 •w. 3 5.94 a 5.28 S t e r l i n g C e r t i f i c a t e * o f Deposit Lower 5.25 40.44 „ on Unadi. Euro-S Deposits 86 5.75 U.S. Certificate of Deposits Lower 8A 4.88 5.00 „ Euro-$ 6-montti Rate 7A Rale M -0.66 •• -1.00 „ Local Authority Deposits (covered) Lower Differential U.S. Treasury Bill rate 9A Mov. 17 U.K. Treasury Bill rate 3 Upper 8.06 Spread (+= favor London) Hov„ 17 42.07 3-month Forward Pound Lower 6.76 " Local Authority Deposit (uncovered) i 96 4.69 Met Incentive (+= favor London) -2.59 " -0.52 IV-4 Chart Panel 10A Upper 10B Date Euro-S Deposits (covered) Nov, 15 Gem an Interbank Loan rate »• Lower Differential " Upper Euro-S Deposits (covered) Lower Differential Upper Canadian Finance Paper „ Nov. 17 U.S. Treasury Bill rate it Canadian Treasury Bill rate 8.12 • 44.01 3.00 - n a? 5.25 4.69 3-S3 U.S. Prime Finance paper (not plotted) 5.13 Bill rate differential H -1.16 Forward Canadian dollar ii 40-12 Third Net incentive on bills ii Bottom Net incentive on Finance Paper Upper U.K. Treasury Bill rate Second 12A 4.11 3.82 Swiss Deposit rate 11 Rate Series 6.76 U.S. Treasury Bill rate German Interbank Loan rate Lower 12B H Nov. 15 Japanese Average rate Canadian Treasury Bill rate -1.04 40.24 4.69 8.12 6 * 1 1 Nov. 17 3.53 U.S. Treasury Bill rate „ Euro-S Deposits II 5.75 Swiss 3-month Deposit rate II 3.00 " 4.69 U.S. Treasury Bill rate 4.69 IV-5 Chart Panel Series 13 Upper Netherlands Dale Canada United States Switzerland Germany Middle United Kingdom Upper Nov. 15 5.18 Nov. 10 5AS O c t , 31 8.10 7.93 U.S. Corp. Asa bonds October 7.21 Switzerland Nov. 17 434.5 Nov. 7 292.6 United Kingdom Canada ~ 6.59 6.66 United States Lower Nov. 8 September * Germany Middle 6.91 September U.S. Corp. DM Euro-bonds 14 Nov. 3 Kov. i n U.S. Corp. Dollar Eum4*md% e r i e 8 Lower Rale Japan United States F Series F Nov. 17 " 260.16 275,04 Nov. 9 267.83 Nov. 4 758.13 Nov. 17 260.16 • Hew - Average yield of ALL German Public Authorities bonds made as of banking key days. * Beginning week ended September 5,1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Stock Exchange.