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 t< B o X R D OF G O V E R N O R S F E D E R A L RESERVE SYSTEM September 28, 1966 H. 13 No. 267 CAPITAL MARKET DEVELOPMENTS ABROAD ij. IIo Ten Charts on Financial Markets Abroad Latest Figures Plotted in H.13 Chart Series, 1966 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 UiSc 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 R a t e s — M a j o r Currencies Against U.S. Dollar 3-mon^h Forward Exchange Rates Industrial Stock Indices Europe and British Commonwealth Section. (Decontrolled after six months) NEW YORK, LONDON/ 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 HQ-DOLLAR DEPOSIT i. CERTIFICATE OF D E P O S I T 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 ove red}» Q UO TE D IN NE W YOR K 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. 'l964 Sept. Mar lun, 1965 Sept. Dec. Mar. Sept. Dec. L O N D O N ; YIELDS FOR U . S . DOLLAR I N V E S T O R S O N 3 - M O N T H F U N D S (EURO -DO L L A R DEPOSIT RATES 30 D A Y - |'H"|RE PURCHASE A N D LOCAL AUTHORITY DEPOSIT RATES ( c o v e r e d ) EUR 0 - D 0 L L A R D E P 0 S I T HIRE PURCHASE DIFFERENTIAL FAVOR HIRE m Q M S l l I FAVOR EURO DOLLAR DEPOSIT LOCAL A U T H O R I 1 FY 1 A l "1 l EUKU-DULLAK D E P O S I T ^ l 1 1 1 . 1~ 1 FAVOR LOCAL AUTHORITY DIFFERENTIAL FAVOR EURODOLLAR 1964 1965 1966 1 (INTEREST ARBITRAGE: F R A N K F U R T / L O N D 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 DOLLAR RATE (COVERED) I N TERMS OF D M _ INTERBANK LOAN RATE EURODOLLAR T r .DIFFERENTIAL | FAVOR EURODOLLAR ZURICH DEPOSIT RATE V S . L O N D O N EURO D O L L A R RATE (COVERED) 1 1 I N T E R M S V O K / W * S FRANCS EURODOLLAR SWISS DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR EURODOLLAR n PRICE OF GOLD I N L O N D O N 35.2 35.0 1964 1965 1966 INTEREST A R B I T R A G E , UNITED S T A T E S / C A N A D A 3 - M O N T H TREASURY BILL RA ES CAN . F I N . C O . l P A R E R CANADA UNITED STATES BILL RATE DIFFERENTIAL A N D FORWARD C A N A D I A N DOLLAR S P R E A D I N FAVOR OF CANADA PREMIUM ! I V>-< FORWARD RATE VV 3 - M O N T H COVERED RATE DIFFERENTIALS (NET I N C E N T I V E S ) FAVOR CA1ADA P R I M E F I N A N C E PAPER FAVOR U.S. FAVOR CANADA ~ 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 Friday f i g u r e i 3 - M O N T H TREASURY BILL RATES LONDON U.K. LOCAL AUTHORITY D E P O S I T S NEW YORK 1 RAT E D I F F E R E N T I A L A N D 3 - M O N T H FOR W A R D S T E R L I N G 1 1 I 1 | 1 S P R E J ID I N FAVOR 1 OF LlDNDONI 1 I I I - 1 1'REMIUIM IIISCOUPIT HS yZ-V J 1 V 1ORWA RD RAiTE 1 1 1 »Vs/ 1 I 1 1 i i I 1 1 1 I | 1 1 N L ?:v V A AV i 1 1 | I | | 1 1 1 | | 1 1 RATE D I F F E R E N T I A L WITH 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 FAVOR OF L O N D O N I N F A V O R OF NEW YORK 1963 1964 1965 1966 1 1 SHORT-TERM INTEREST RATES * EURODOLLAR - LONDON 1 SWITZERLAND JAPAN GERMANY CANADA U.S. 1962 1963 1964 1965 '•rog« rote on bonk loom and discounts ) irlandlf3-monlh depoi " P 3 month rote for U S. dollar deposits in London 1966 LONG-TERM i O N P YIELDS GERMANY U.K. EURO-DOLLAR BONDS * NETHERLANDS iCANADA' SWITZERLAND: 1962 1963 1964 1965 1966 1 Chart 6 —4' SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR S W I S S FRANC 1.2 GERMAN MARK U.K. STERLING FRENCH FRANC BELGIAN FRANC. DUTCH GUILDER JAPANESE YEN (•lew po< 3 - M O N T H FOKWABP I X C H A W O l BATES AGAINST U.S. DOLLARS — NEW YORK # GERMAN MARK 1 SWISS FRANC i V POUN D STERLING DISCOUNT2 DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR OISCOUNTAGAINST POUND STERLING — L O N D O N SWJSS FRANC IA GERMAN MARK U.S. DOLLAR i Ml DISCOUNTM I S I 1964 D S M 1965 0 M J 1966 S 0 INDUSTRIAL STOCK INDICES Ratio scale 300 SWITZERLAND 250 GERMANY U.K. 200 U.S. 150 Ot 100 300 250 JAPAN 200 CANADA 150 100 1963 * 1964 Swiu Bank Corporation InduMriol slock indei * Japan: inden el 225 induiiriol and other ilockt n 1965 1966 y V September 28, 1966 H. 13 No.267 II.Latest Figures Plotted in H. 13 Chart Series, 196b (all figures per cent per annum) Chart 5 (Friday, Sgpt. 23 Chart 1 Euro-$ Deposit 6= 62 U.S. certif. of deposit 5.90 Lower Panel (Friday, Sept. 23 Finance co. paper: U.S. Canada Hire-purchase paper, U.K. 5.63 6.75 6.79 •rl.13 Forward pound -0.90 Net incentive (U.K. + ) 40,23 Treasury bills: 90-day 180-day 6.50 6.88 Hire-purchase paper 6.89 (Sept. 16) Local-authority deposit 6.52 (Sept. 16) Chart 3 Upper Panel (Period: Sept. 8-15 ) Interbank loan (mid-point) 6.88 Euro-$ deposit (average) 6.91 Lower Panel Spread favor U.K. Chart 6 (Friday, Segl. 23 ) Euro-$ deposits: . 6.25 6.38 6.50 (Date: August 15 Zurich 3-mo. deposit Chart 4 (Friday, Septc ) 4.25 Price of gold (Friday, Sect. 16) 6.60 S.4/ U.K. U.S. ) Chart 2 (Friday, Sept. 23 ) Call 7-day 30-day Treasury bills: ) 35.183 23 ) U.S. U.K. Canada 5.47 6. 60 4,$4 Interbank loan rate (German) (Sept, 8-15) Euro-$ deposit (London) Zurich 3-mo. deposit (Date: August 15 Japan composit rate (Date: Jure 30 6.88 6. 50 ) 4.25 ) 7.49 Chart 7 U.S. Gov't. (Wed., Sept. 21 ) 4.82 U.K. War Loan (Thurs., Sept, 15) 7.19 German Fed. (Fri., Sept, 9 ) 8.25 Swiss Confed. (Fri. , Sept. 16) 4.08 Canadian Gov't. 5.83 (Wed., Syfc. 14 Netherlands Gov't perpetual 3% (Friday, Sept. 16 ) 5.97 X 4.84 5.47 -0. 63 Euro-$ bonds (Fri., Sept. 23) Forward Canadian $ +0. 32 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, 1964< Net incentive (Canada + ) -0, 31 Treasury bills: Canada U.S. Spread favor Canada Canadian finance paper 6.25 6.83
@FedFRASER