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H. 13 No. / 37&— ' • November 27, 1968. -CAPITAL MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on F i n a n c i a l Markets Abroad L a t e s t Figures P l o t t e d i n H.13 Chart S e r i e s , 1968 ^AlLl I. Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart 1 - New York, London: Y i e l d s on U.S. Dollar Funds 2 - London: Y i e l d s f o r U.S. Dollar Investors on 3-Month Funds 3 - I n t e r e s t Arbitrage: Fraikfurt/London, Zurich/London 4 - I n t e r e s t Arbitrage: New York/Canada 5 - I n t e r e s t Arbitrage: New York/London 6 - Short-Term I n t e r e s t Rates 7 - Long-Term Bond Y i e l d s 8 - Spot Exchange Rates—Major Currencies Against U.S. Dollar 9 - 3-Month Forward Exchange Rates 10 - I n d u s t r i a l Stock Indices Europe and B r i t i s h Commonwealth Section. NOT FOR PUBLICATION DECONTROLLED AFTER SIX MOUTHS NEW Y O R K - L O N D O N : YIELDS O N U . S . DOLLAR F U N D S 3 - M O N T H D O L L A R D E P O S I T RATES Wednetdov Iiguret EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T ..._l E U R O - D O L L A R O V E R U . S . C E R T I F I C A T E OF D E P O S I T CALL E U R O D O L L A R D E P O S I T RATE V S . U . S . FEDERAL F U N D S RATE CALL EURO-DOLLAR DEPOSITS FEDERAL FUNDS E U R O - D O L L A R OVER F E D E R A L F U N O S Mir. Jun. Sept. Dec. 1965 Mir. Jen. 1966 Sept. Dec. Mir. Jen. 1967 Sept. Dec. Mir. Jan. 1968 Sept. Dec. ^ 3 LONDON: YIELDS EURO-DOLLAR Friday figures FOR DEPOSIT U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS RATES Per cent per annum 8 7 6 30 DAY 5 4 CALL 8 7 6 180 DAY 5 90 DAY 4 M J S D N 1965 J 1966 S D M J 1967 S D M I S 1168 O u LONDON: YIELDS FOR U . S . HIRE PURCHASE A N D DOLLAR LOCAL INVESTORS O N AUTHORITY 3-MONTH D E P O S I T RATES FUNDS (covered) EURO-DOLLAR DEPOSIT, HIRE P U R C H A S E | FAVOR HIRE PURCHASE DIFFERENTIAL j FAVOR EURO-DOLLAR EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY DIFFERENTIAL 1965 EURO DOLLAR 1966 1967 1968 1 £ 1 ,eo««». IN TERMS OF DM EURO-DOLLAR INTERBANK LOAN RATE FAVOR FRANKFURT DIFFERENTIAL FAVOR EURO-DOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE (COVERED) TERMS OF SWISS FRANCS EURO DOLLAR SWISS DEPOSIT RATE FAVOR ZURICH DIFFERENTIAL IN LONDON 1965 I cleied March 13 April 1, 1968 1966 1967 1968 INTERS! ARBITRAGE, Friday figures 3- M O N T H TREASURY UNITED BILL STATES /CANADA Per RATES CAN. FIN. CO. UNITED PAPER STATES I CANADA BILL RATE DIFFERENTIAL AND FORWARD CANADIAN SPREAD DOLLAR I N F A V O R OF C A N A D A FORWARD RATE 3-MONTH COVERED RATE DIFFERENTIALS (NET , TREASURY INCENTIVES) BILLS PRIME FINANCE PAPER FAVOR U.S. FAVOR CANADA 1965 1966 1967 1968 n INTEREST A R B I T R A G E , NEW Y O R K / L O N D O N 3 - M O N T H TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS W M v J I LONDON NEW YORK 1965 1966 1967 1966 GE, N E W RATE DIFFERENTIAL AND YORK/LONDON 3-MONTH FORWARD STERLING. SPREAD 4 j IN FAVOR OF L O N D O N 2 0 DISCOUNT! FORWARD RATE 2 4 6 8 10 IN FAVOR OF L O N D O N IN FAVOR OF N E W 2 0 YORK 2 4 6 RATE DIFFERENTIAL WITH FORWARD 1965 1966 EXCHANGE COVER (NET 1967 INCENTIVE) 8 1968 SHORT-TEKM INTIftlST BATES* I8 EURO-DOLLAR • LONDON t 7 6 7U.K. 5 4 3 2 9 8 JAPAN 7 6 CANADA / 5 U.S. 4 GERMANY 3 2 1 M 4 1915 Switzerland (3-month depoiit role) and Germany (Interbank Loan tote) 3-month rote for U S dehor deposits in London IMS 1987 111! [6 L O N G - T E R M B O N D YIELDS NETHERLANDS^ CANADA U.S. SWITZERLAND^ 9 T GERMANY U.K. E U R O D O L L A R BONDS 8 U.S. EURO-DOLLAR BONDS U.S. CORP. A M BONDS 1964 * $* * * * * ### Averoge of New series New series New series 1965 1966 yields for four foreign government dollar bonds quoted in London for Germany starts 7 9 65 for Switzerland starts *3-3-67 for Netherlands starts 1 7-66 1967 1968 Y\ C h a r t 8A SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC W \ ^ G E R M A N MARK U.K. STERLING Below par Above par DUTCH GUILDER I FRENCH FRANC JAPANESE YEN M J S 1966 'Devaluation o' 'he pound sterling from $2.80 to $2.40. 1967 Ylr Chart 8B SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR Above par 1.2 BELGIAN FRANC ITALIAN LIRA j CANADIAN DOLLAR M J S D M 1966 J S 1967 D M J 1968 S D M J S 1969 D Below par ' 1 3 C h a r t 9A 3 - M O N T H FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS-NEW YORK Friday figures Per cent per a n n u m PREMIUM + GERMAN MARK SWISS FRANC w < > ' POUND STERLING DISCOUNT- T DUTCH GUILDER/V CANADIAN DOLLAR FRENCH FRANC DISCOUNT- i M S D" M 1966 J 1967 S M J 1968 S D J 1969 S D 1 1 Chart 9B 3 - M O N T H FORWARD EXCHANGE RATE AGAINST POUND STERLING-LONDON Friday f i g u r e s * = Per cent per a n n u m PREMIUM* GERMAN MARK U.S. DOLLAR SWISS FRANC FRENCH FRANC : M J s D M 1966 S 1967 DISCOUNT— D M J 1968 S s D 1969 )S> INDUSTRIAL STOCK INDICES l958:100 Ratio scale 360 320 280 240 SWITZERLAND 200 U.S. GERMANY 160 U.K. 120 360 320 JAPAN 240 CANADA 200 I U.S. 160 120 1165 » * » 1966 Swiss Bank Corporation industrial stock index. Japan: index of 225 industrial and other stocks traded on the Tokyo exchange 1967 1961 I t H. 13 No. 378 II. a. L a t e s t F i g u r e s P l o t t e d in H. 13 S e r i e s ( a l l f i g u r e s i n per c e n t per annum) Chart 1 Upper P a ne ls (Wednesday, Chart 4 Nov. 20 Euro-$ d e p o s i t U.S. c e r t i f . (Friday, ) 5.50 5.41 U.S. 6. 06 of d e p o s i t Nov. 22 Treasury b i l l s : Canada 6. 94 Lower P a n e l s (Wednesday, November 27, 1968. Spread ( f a v o r Canada +) Nov. 20 +0.09 Forward Canadian d o l l a r -0.54 C a l l Euro-$ d e p o s i t 6.51 Net i n c e n t i v e (Canada + ) -0.45 F e d e r a l Funds 5.45 Canadian Finance paper Chart 5A (Friday, Nov. 22 Chart 2A Euro-$ d e p o s i t s ( F r i d a y , Upper Panel T.rmpr Panel 6.38 Nov. 22 Call 6.56 30-day 6.81 90-day 7.00 180-day 7.00 Chart 2B ) Treasury b i l l s : ) 5.46 Local Authority (Nov. 15 ) 5.15 Euro-$ d e p o s i t ( Nov. 15 ) 6.88 Chart 3 6.66 5.41 Chart 5B 4-1. 25 Spread ( f a v o r U.K. +) Forward r a t e Net i n c e n t i v e (U.K. +) Upper Panel (Friday Treasury B i l l s Nov. 2 2 ) 5.41 6. 66 U.S. U.K. 5.50 Canada Euro-$ d e p o s i t (London) 7. 00 16-23 Lower Panel Interbank Loan ( m i d - p o i n t ) 4.50 German Interbank loan r a t e ( Nov. 23 ) Euro-$ d e p o s i t s (average) 2.76 Nov. Lower Panel ( d a t e : Nov. 8-15 Zurich 3-mo. d e p o s i t ) 4. 25 Euro-$ r a t e (covered) (Nov. 23) 6 . 0 2 I I . P r i c e of Gold (London) 40. 19 (average-week endedNov.22 ) 7.31 U.K. U.S. Chart 6 Hire-Purchase ( Nov. 15 I. Upper Panel (Period: ) U.K. Local Authority d e p o s i t Zurich 3-month d e p o s i t 4.50 flov. 15 ) 4. 25 Japan Composite Rate ( S e p t . 30 ) 7.43 U.S. Treasury b i l l s (Nov. 5.41 22 ) H. 13 No. 378 b November 27, 1968. Chart 7 Chart 9A Upper Panel U.S. Gov't. (Friday, (Wed., Nov. 20 Netherlands Govt. Canadian Gov't. ) 5.46 ( F r i . , Nov. 15) 6 . 5 3 (Wed., Nov. 20 ) 7 . 2 3 Swiss Gov't. Composite ( F r i . , Nov. 15) 4 . 3 7 ) Upper Panel Swiss f r a n c s +Q» 98 German marks n.a. a £ sterling » Lower Panel Middle Panel German Fed. , ( F r i . , Nov. 15 ) 6..21 U.K. War Loan (Thus., Nov . 21) 7. 82 Euro-$ bonds ( F r i . , 7. 55 Nov. 22 ) Lower Panel U.S. Euro-bonds ( Oct. 31 U.S. Corporate Aaa ( Nov. 22 Against U.S. d o l l a r s 0ct * ) 7. 20 31 ) 6. 09 Chart 8A (Friday, Nov. 22 ) French franc n Dutch g u i l d e r n Swiss f r a n c s + 1 . 79 German marks +0 . 5 6 U.K. £ s t e r l i n g -0, . 8 2 Canadian d o l l a r -0.54 Chart 9B (Friday, Nov. 22 Against pound s t e r l i n g ) Upper Panel German mark + U.S. d o l l a r +2.50 Swiss franc French franc Lower Panel n. Dutch g u i l d e r s +0. 24 Japanese yens +0. 53 - 0 . 80 +0. 69 +0.09 +3. 19 +6.09 Upper Panel ( Nov. 15 ) Germany ( Nov. 11 ) 262. 8 ) ISA a Lower Panel Nov. 22 ) 234.4 Canada ( ( Nov. 14 ) 221.0 Japan ( Nov. 22 ) 297.8 For d e s c r i p t i o n s and sources of d a t a , see S p e c i a l Supplement No. 343-S dated March 27, 1968. 271.4 S w i t z e r l a n d ( Nov. 22 U.S. Chart 8B (Friday, Nov. 22 ) Italian lira ' Chart 10 (Index; 1958 = 100) U.K. Belgian francs Canadian d o l l a r s » a> Lower panel Upper Panel French f r a n c s - a»
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