The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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 BOARD O F • OVERNORS OF T H E F E D E R A L RESERVE SYSTEM H* 13 No. 265 ^ September 14, 1966. [_CAPITAL MARKET/DEVELOPMENTS ABROAD I. Ten Charts on Financial Markets Abroad II. Latest Figures Plotted in H.13 Chart Series, 1966 I. Ten Charts on Financial Markets Abroad Chart 1 Chart 2 Chart 3 Chart Chart Chart Chart Chart 4 5 6 7 8 Chart 9 Chart 10 New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month 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 Bond Yields Long-term Bond Yields Spot Exchange Rates—Major Currencies Against U.S. Dollar 3-month Forward Exchange Rates Industrial Stock Indices Kf:i:rr\T.[y KCsiJA!:: i; SEP Ki:sr.%\:: or ! : i c h . \ m x \ ] > Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months) NEW Y O I K , LONDON, M O N T R I A L : YI1LDS FOR U.S. D O H A # INVESTORS O N 3 - M O N T H FUNDS DOLLAR DEPOSIT RATES: NEW Y O R K L O N D O N * 0 DOLLAR DEPOSIT CERTIFICATE OF D E P O S I T 1 EURO-DOLLAR OVER | 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 ( c o v e r e d ) , QUOTED IN NEW YORK C A N A D I A N FINANCE , COMPANY U . K . HIRE PURCHASE U . S . F I N A N C E COMPANY Mar. Dec. Mar. J««. 1965 Sept. Dec. Mar. !••. Sept. 7956 Dee. L O N D O N : YIELDS FOB U . S . DOLLAR I N V I S T O B S O N 3 - M O N T H F U N D S EURO DOLLAR DEPOSIT RATES 180 DAY 9 0 DAY CALL 30 O A Y - [HIRE PURCHASE A N D LOCAL AUTHORITY DEPOSIT RATES (, EURO D O L L A R D E P O S I T HIRE PURCHASE1 - ' r • rDIFFERENTIAL FAVOR HIRE PURCHASE 1 I FAVOR EURODOLLAR OCAL A U T H O R I T Y D E P O S I T EURO DOLLAR D E P O S I T FAVfl* LOCAL AUTHORITY DIFFERENTIAL: FAVOR EURODOLLAR 1964 1965 1966 1 (INTEREST A R B I T R A G E : F R A N K F U R T / L O N P O N , Z U R I C H / L O N P 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 N TERMS O F D M _ INTERBANK LOAN RATE EURODOLLAR T T .DIFFERENTIAL I FAVOR EURODOLLAR 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 ) I N T E R M S T O V s M S FRANCS I EURODOLLAR SWISS DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR EURO-DOLLAR X I PRICE OF G O L D I N L O N D O N 35.2 35.1 1964 1965 1966 INTEREST ARBITRAGE, U N I T Fridoy ligurei 3 - M O N T H T R E A S U R Y B I L L RA CAN. FIN. CO.lPAPER CANADA ^ " 1 UNITED STATES 1 1 1 1 T 1 1 B I L L R A T E D I F FEREIN T I A I . A N C > F O R W A R D C A IN A D I A N 1 • ^ ~ M s p R E A D I N FAV [ O R OF ' C A N A e II W / ' J \ — \jy ' f o r w I R O Ri I T E u¥ 1 1 D OLLAR U | E M HUM DISCO UNT A W 1 11 I| I| 11 11 11 11 11 11 II II 3-MONTH C O V E R E D RATE D I F F E R E N T I A L S (NET I N C E N T I V E S ) I I i i i PRIME FINANCE PAPER I : a a A \ j \ t \ l lI 1 1 1 1 FAVOR C A N A D A I FAVOR U . S . FAVOR C A N A D A ~ TREASURY BILLS FAVOR U . S . 1963 1964 1965 1966 INTEREST A R B I T R A G E , N E W Y O R K / L O N D O N 3 - M O N T H TREASURY BILL RATES 6 LONDON U.K. LOCAL AUTHORITY DEPOSITS NEW YORK 4 2 RATE D I F F E R E N T I A L A N D 3 - M O NTH FORWARD STERLING I I I S P R E A D I N F A V O R OF L O N D O N 0 R A T E . D I F F E R E N T I A L W I T H F O R W A R D E X C H A N G E COVER (NET I N C E N T I V E ) I N F A V O R OF L O N D O N I N F A V O R OF N E W Y O R K 1963 1964 1965 1966 SHORT-TERM INTEREST itATES U.K. EURO DOLLAR - LONDON' U.S. SWITZERLAND JAPAN GERMANY CANADA A ' U.S. 1962 * 1963 ~j ~3 month rale lor U S dollar deposits In London r J 1964 1965 3 month inotufy bill roles lor oil countriesi_tt*cepl jopon ^Average roU on bonk loam and discounts ^ : Switzerland f?3^monlh deposit rate)] and Ge r m a n y (interbank Loon Role) 1966 LONG-TERM BOND YIELDS GERMAN EURO DOLLAR BONDS * NETHERLANDS !CANADA < - / — ^ r r V > U.S. SWITZERLAND 1964 1965 1966 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR S W I S S FRANC GERMAN MARK \ Z/V U.K. STERLING FRENCH FRANC BELGIAN FRANC DUTCH GUILDER ITALIAN LIRA CANADIAN DOLLAR - J A P A N E S E YEN 1964 ( 1965 1966 ' \ ° 3 - M O N T H FORWARD EXCHANGE t A T l t AGAINST U.S. D O L L A R S - N E W YORK , ffi<loy tiflum GERMAN MARK Xxc) j SWISS FRANC i V FOUND STERLING DISCOUNT— 2 DUTCH GUILDER FRENCH FRANC CANADIAN 1 0 L L A R A G A I N S T POUND STERLING — L O N D O N S W I S S FRANC : A_/v GERMAN MARK DOLLAR OISCOUNTf W 1966 Chcrl 10 ' ' INDUSTRIAL STOCK INDICES ' ' „ / 195^100 300 SWITZERLAND 250 GERMANY U.K. 200 US 150 100 300 250 JAPAN 200 CANADA US 150 100 1963 1964 Swill lojjk Corporolion induilrial Heck iedes 1965 \V September H, 13 No.265 Latest Figures Plotted in Hi 13 Chart Serie (al,l figures per cent per annum) . 6*75 Treasury bills: 5,88 U.S. certif. of deposit (Friday, Sept 9 ) 5.63 6,52 6,99 Finance co. paper: U.S. ' Canada Hire-purchase paper, U.K. 9 Spread favor U.K. 4-1. 44 Forward pound -0,95 Net incentive (U.K. +) +0,49 (Friday, ) 1 Euro-$ deposits: 90-day 180-day 6,75 7.31 6.94 (September 2) . 6,38 Local-authority deposit (September 2) Chart 3 Upper Panel (Period: Sept; 1-7 ) Interbank loan (mid-point) 6,88 Euro-$ deposit (average) 6.70 Lower Panel (Date: August ) 4.25 Zurich 3-mo. deposit 35,188 Price of gold (Friday, Sept, 2 15 ) (Friday, Sept 9 Treasury bills: Interbank loan rate (German) 6,88 fc. 75 Euro-$ deposit (London) Zurich 3-mo. deposit (Date: Aug lb Japan composit rate (Date: : -ne 30 4.25 ) 7,49 ) Chart 7 U.S. Gov't. (Wed., Sept. 7 ) 4c 76 U.K. War Loan (Thurs.,Sept 8) 7.31 German Fed. (Fri., Sep:. 2 ) &34 Swiss Confed. (Fri. ,Sept 4.08 (Friday, =tpt 4,87 5 16 -0.- 29 Forward Canadian $ + 0= 09 Net incentive (Canada +) -0. 20 6 25 1-7) 2) (Wed. . Sepi Netherlands Gov't perpetual 3% ) Canada U.S. Spread favor Canada Canadian finance paper ) 5o lb t.bO 4,87 Canadian Gov't. Chart 4 Sept, 9 Treasury bills: U.S. U.K. Canada (Sept. Hire-purchase paper 6.60 5- 16 V U.K. U.S. Chart 6 Chart 2 (Friday, Sep* 6,12 6,31 6 62 1966 (Friday, Sept- Euro-$ Deposit Call •; 7-day 30-day 1966 Chart 5 Chart 1 Lower" Panel 14, 2 ) Euro-$ bonds (Fri., Sept 9) ^.85 b.06 6.83 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1966.
@FedFRASER