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DIVISION O F I N T E R N A T I O N A L F I N A N C E
BOARD OF OOVERNORS
FEDERAL. R E S E R V E SYSTEM
H. 13
No. 215
September 29, 1965
"
CAPITAL MARKET DEVELOPMENTS ABROAD
I.
II.
I.
Nine Charts on F i n a n c i a l Markets Abroad
L a t e s t F i g u r e s P l o t t e d i n H.13 Chart S e r i e s , 1965
Nine Charts on F i n a n c i a l Markets Abroad
Chart 1 - I n t e r n a t i o n a l Money Market Y i e l d s f o r U.S.
Dollar Investors
Chart 2 - I n t e r e s t A r b i t r a g e , United States/Canada
Chart 3 - I n t e r e s t A r b i t r a g e , New York/London
Chart 4 - I n t e r e s t A r b i t r a g e f o r German Commercial Banks
Chart 5 - Short-term I n t e r e s t Rates
Chart 6 - Long-term Bond Y i e l d s
Chart 7 - I n d u s t r i a l Stock I n d i c e s
Chart 8 - Spot Exchange Rates - Major Currencies Against
U.S. D o l l a r
Chart 9 - 3-Month Forward Exchange Rates
OFFICIAL USE ONLY
DECONTROLLED AFTER SIX MONTHS
Chart 1
INTERNATIONAL MONEY
M A R K E T Y I E L D S FOR U . S . D O L L A R I N V E S T O R S
3 - M O N T H EURO D O L L A R D E P O S I T V S . C E R T I F I C A T E O F D E P O S I T
Wedneidoy
figures
A
I U I 0 - 6 0 1 U 1 OIPOSIT
|
EURO-DOLLAR
OVER
|
SELECTED I N T E R N A T I O N A L M O N E Y RATES
Friday
f i g o re i
EURO-DOLLAR
1
COMMERCIAL
DEPOSIT RATES ( L O N D O N )
1
1
PAPER-Fully
1
Hedged
i vi
J I ./j
{',]
J'J
M
U.S. F M A I K I COMPANY
• »(.
Her.
M«r.
IUI
MM
1HS
a * * * m m
INTEREST ARBITRAGE,
Friday figures*
3
- MONTH
UNITED
TREASURY
BILL
STATES / C A N A D A
RATES
UNITED STATES
RATE
DIFFERENTIAL
AND
FORWARD
CANADIAN
DOLLAR
S P R E A D IN F A V O I O f C A N A D A
F O R W A R D RATE
-3
- MONTH
COVERED
RATE
DISCOUNT! _
DIFFERENTIALS
(NET
INCENTIVES)-
FAVOR U.
FAVOR
TREASURY
M I M
Thursday hq u re t 196 2. Friday (hereafter
S.
CANADA
IILLS
T-T
INTEREST A R B I T R A G E , NEW
Frldoy f i g u r e s
YORK/LONDON
3 - M O N T H T R E A S U R Y BILL RATES
RATE D I F F E R E N T I A L A N D
FORWARD
RAT
T
3-MONTH
STERLING
DIFFERENTIAL
WITH
FORWARD
EXCHANGE
COVER
(NET I N C E N T I V E )
INTEREST ARBITRAGE FOR
Friday figures
GERMAN COMMERCIAL B A N K S
3 - M O N T H TREASURY BILLS, I N T E R B A N K
E U R O - D O L L A R D E P O S I T RATES
LENDING
RATE A N D
|
• OH
|LOAN IATI
RATE D I F F E R E N T I A L A N D
F O R W A R D DEUTSCHE MARK
RATE 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 C O V E R (NET I N C E N T I V E )
I
|
I IN FAVOI OF H A M F U I T I A
,
I
I
~
7
\
I
I
I
A INTIIIANM LOAN IATI
\/ J vvt|
'
/
U
VvV/p—NAv/v/\j
1 I
I I
-
IN FAVOI OF LONDON IIIIO-BOtlAIS
I I I I I I I I I I I I I I
I I
1 I
1 I
I I
Chart
5
SHORT-TERM
INTEREST
R A T E S *
r
i
i
h
i
1
1
1
I
|
IUIO-SOIUI - 10MS0N t
A
j
q .
M. 1 .
V
V
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v
-
r
h
_
T
r
p v l
f f
I . s.
SIIBAMV
^
1 1 1 1 1 1 111 1 1 1 1 1 1 1 1 1
1 1 1 1 1 II 1 1II1 11 1 1 1 1 1 11 II1 II 1 II 1 K U
\\
1
1
Vwv
e
•
1
t
w
i
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/
SWITZillANS
1 1 1 II 1 1 1 1i 1i i 1i
>J->I II 1 1 1 1 1 1
m i
1942
m i
"X" 3 month Ireoiury bill rolei (or oil counlriei i x t p l Japan.
and Switzerland (3 month deposit r o i ^
"(* 3 monlh rote (or U S dollar deposit! in London
i i i i i i i
1 1 1 1 II 1 1 UIA.
19*4
role on bonk loons ond diicovnli)
111$
Chart 4
LONG-TERM
BOND
YIELDS
W.l
J
V
iwifiiiim
I
%
INDUSTRIAL
STOCK
INDICES
Rati* itele
Swiss Bonk Corporation industrial Hock.
Japan, i n d • * o f 225 industrial and other
itocki traded <
f oky o exchange
SPOT
EXCHANGE
RATES
- MAJOR
CURRENCIES AGAINST
U.S.
DOLLAR
<•"'
Above por
Above par
J
lf*3
$
$
11*4
11*5
BeUw
10
3-MONTH
Friday
F O R W A R D E X C H A N G E RATES
ligutu
A G A I N S T U.S. DOLLARS
GERMAN
MARK
SWISS FRANC
POUND
STERLING -
A G A I N S T POUND STERLING - L O N D O N
SWISS FRANC
DISCOUNT-
A G A I N S T POUND STERLING - L O N D O N
z
FRENCH
< 7 > c ?
FRANC
^
V .
H. 13
No. 215
September 29,
II.
L a t e s t F i g u r e s P l o t t e d I n H. 13 Chart S e r i e s ,
Per cent
per annum
Chart 1
Upper p a n e l
(Wednesday,
Sept.
certif.
Treasury bills:
Jl5P
of d e p o s i t
Lower p a n e l s
(Friday,
Sept.
24
)
Euro-dollar deposits
F i n a n c e Co. p a p e r :
Call
7-day
30-day
90-day
180-day
4.12
4.25
4.38
4.50
4.88
U.S.
4.25
Canada
4.44
H i r e - p u r c h a s e p a p e r , U.K.
Sept.
Treasury b i l l s :
24
Canada
3.98
U. S.
3. 94
4-0. 04
Forward Canadian d o l l a r
-0.61
-p.57
5.36
Germany
3.88
Canada
3.98
3.82
Euro-$ d e p o s i t (London)
4 . 50
Japan: c o m p o s i t e r a t e
( D a t e : J u l y 30
)
7.782
Chart 6
U.K. war l o a n
(Thurs.,
Sept.
22
4.29
23
German Fed. Railway
(Fri.
S e p t . 24
7.39
Swiss Confederation
(Fri.
S e p t . 24
_3J_96
Canadian g o v t .
(Wed.
Sept.
Chart 3
Treasury b i l l s :
U.K.
U.S. g o v t .
(Wed.,
Sept.
)
Net i n c e n t i v e (Canada +)
Sept.
3. 94
Bonds:
Spread f a v o r Canada
(Friday,
U.S.
S w i s s 3-month d e p o s i t s
( D a t e ; S e p t . 23 )
4.96
Chart 2
(Friday,
Per c e n t
p e r annum
Chart 5
( F r i d a y , S e p t . 24 ,
except as noted)
22)
Euro-$ d e p o s i t
U.S.
1965
22
24 )
U.K.
s.36
U.S.
3 QL
Spread f a v o r U.K.
+_LA2
Forward pound
-1.73
Net i n c e n t i v e (U.K. +)
-0.31
d e s c r i p t i o n and s o u r c e s
Digitized forFor
FRASER
September
23, 1964.
N e t h e r l a n d s government
perpetual
(Fri.,
S e p t . 17
)
5. 14
of d a t a s e e s p e c i a l annex t o H. 13 Number 164,
1965
@FedFRASER