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^ 7 <rus-> BOARD OF a O V I R N O U September 4, 1968. No. 36 i y y a ^ A P I ^ A L MARKET DEVELOPMENTS ABROAD I. II. Ten Charts on Financial Markets Abroad Latest Figures Plotted in H. 13 Chart Series, 1968 a i I. Ten Charts on Financial Markets Abroad Chart Chart Chart Chart Chart Chart Chart Chart Chart Chart Europe and British Commonwealth Section. , 1 - New York, London: Yields on U.S. Dollar Funds 2 - London: Yields for U.S. Dollar Investors on 3-Month Funds 3 - Interest Arbitrage: Fraikfurt/London, Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-Term Interest Rates 7 - Long-Term Bond Yields 8 - Spot Exchange Rates--Major Currencies Against U.S. Dollar 9 - 3-Month Forward Exchange Rates 10 - Industrial Stock Indices NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS Is NEW Y O R K - L O N D O N : YIELDS O N U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES EURO-DOLLAR DEPOSIT U . S . C E R T I F I C A T E OF D E P O S I T E U R O - D O L L A R OVER U . S . C E R T I F I C A T E OF D E P O S I T CALL EURO DOLLAR DEPOSIT RATE VS. U.S. FEDERAL FUNDS RATE CALL E U R O D O L L A R D E P O S I T S FEDERAL F U N D S E U R O - D O L L A R OVER FEDERAL F U N D S Mar. Jun. Sept. Dec. 1965 Mar. Jun. 1966 Sept. Dec. Mar. iwi. 1967 Sept. Dec. Mar. Jim. 1966 Sept. Dec. L O N D O N : YIELDS EURO-DOLLAR FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS DEPOSIT RATES 3 0 DAY CALL i i r n 7 / ' u V A M 1 i v M i V j 9 0 DAY i J Vf jK/fs Y i k 1 1 I i1 1 S 1 1 D M 1965 1 1 r J 1966 i 1! 1 ! S D M : : ! 1 i 1 ! ! J 1967 S 1 ! I M ! D M 1 1 1 1 J 1968 S 1 1 D H L O N D O N : YIELDS FOR U.S. DOLLAR INVESTORS O N 3 - M O N T H FUNDS HIRE PURCHASE Friday ligurei AND LOCAL AUTHORITY DEPOSIT RATES (covered) Per cent per annum EURO-DOLLAR DEPOSIT. HIRE PURCHASE FAVOR HIRE PURCHASE DIFFERENTIAL FAVOR EURO-DOLLAR T T T T EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY DIFFERENTIAL F4W0R EURO DOLLAR 1965 1966 1967 1968 8 6 I INTEREST ARBITRAGE: FRANKFURT FRANKFURT/LONDON, INTERBANK LOAN RATE VS. Z U R I C H / L O N D O N L O N D O N EURO-DOLLAR RATE (COVERED) IN TERMS OF DM EURODOLLAR INTERBANK LOAN RATE 1 i i FAVOR FRANKFURT DIFFERENTIAL r\—< ^\aa 1 ! 1 ! ZURICH 1 1 I I 1 DEPOSIT \ 1 RATE 1 VS. • i 1 I L O N D O N i , i 1 i I i , i EURO-DOLLAR RATE 1 1 i " FAVOR EURO-DOLLAR 1 1 i 1 1 1 1 1 n (COVERED) IN ! - M TERMS OF SWISS FRANCS SWISS DEPOSIT RATE 1 ! D I F F I E R E N T1 A L V 1 H 1 PRICE 1 OF 1 : u 1/ r U / A FAVOR ZURICH 1 x / v / ^ 1 1 1 GOLD IN 1 1 1 1 I I 1 M H I I I m ! i : i i l i FAVOI1 EURODOLLAR 1 1 1.1 1 1 1 I I 1 I I" I I L O N D O N Morkel closed March 15-April 1, 1968 " INTERST ARBITRAGE, U N I T E D STATES / C A N A D A Friday figures 3-MONTH TREASURY BILL Per cent per RATES CAN. FIN. CO. PAPER UNITED STATES NADA BILL RATE DIFFERENTIAL AND FORWARD C A N A D I A N 2 DOLLAR PREMIUM SPREAD IN FAVOR OF CANADA FORWARD RATE 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CANADA TREASURY BILLS PRIME F I N A N C E PAPER j FAVOR U.S. FAVOR CANADA FAVOR U.S. 1965 1966 1967 1968 A • INTEREST ARBITRAGE, NEW Y O R K / L O N D O N 3-MONTH TREASURY BILL RATES I U . K . LOCAL A U T H O R I T Y D E P O S I T S LONDON / NEW YORK 1965 1966 1967 1968 INTEREST ARBITRAGE, NEW Y O R K / L O N D O N RATE D I F F E R E N T KAL AND 3-MONTH FORWARD 4 STERLING S P R E A D I N FAVOR OF L O N D O N 2 PREMIUM 0 DISCOUNT FORWARD RATE 2 v \ 4 6 8 10. T T T IN FAVOR OF L O N D O N 2 ! 0 IN FAVOR OF NEW Y O R K 2 4 I 8 DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) 8 M 1965 1966 1967 1968 SHORT-TERM INTEREST RATES* Per cent per annum' E U R O - D O L L A R - LONDON t 1 ^ U.K. ^-^SWITZERLAND " w 9 JAPAN CANADA I 1964 1965 1966 1967 1968 10 L O N G - T E R M B O N D YIELDS Weekly figures Per cenl per onnum NETHERLANDS CANADA U.S. SWITZERLAND GERMANY U.K. E U R O D O L L A R BONDS 8 U.S. EURO-DOLLAR BONDS U.S. CORP. Aaa BONDS 1964 # »» #* * #* ## Average of New series New series New series 1965 1966 yields for four foreign government dollar bonds quoted *n London for Germany starts 7 9 65 for Switzerland starts 3 3 67 for Netherlands starts 17 66 1967 1968 w SPOT EXCHANGE RATES - MAJOR CURRENCIES A G A I N S T U.S. DOLLAR SWISS FRANC / G E R M A N MARK — t U.K. STERLING B E L G I A N FRANC D U T C H GUILDER FRENCH FRANC I C A N A D I A N DOLLAR ! I T A L I A N LIRA AjA/V JAPANESE YEN M J S D M 1965 J 1966 S D M S 1967 0 M S 1968 D 3 - M O N T H F O R W A R D E X C H A N G E RATES AGAINST Friday figures U.S. DOLLARS — N E W YORK PREMIUM* GERMAN MARK SWISS FRANC " POUND STERLING DISCOUNT- DUTCH GUILDER FRENCH FRANC " j C A N A D I A N DOLLAR DISCOUNT- AGAINST POUND STERLING — L O N D O N PREMIUM* GERMAN MARK S W I S S FRANC 7 N U . S . DOLLAR DISCOUNT- 1965 1967 1966 1968 I ND U STRIA L STOCK INDICES Corporation industrial slock index x of 225 industrial and other stocks traded on the Tokyo exchange 1958 = 1001 Raho seal; 1 H. 13 No. 366 September 4, 1968. II.a Latest Figures Plotted in H.13 Chart Series, 1968 (all figures per cent per annum) Upper Panels Chart 1 (Wednesday, Euro-$ deposit 6.00 U.S. cartif. of deposit 5.85 Lower Panels (Wednesday, Aug. 28 Chart 4 (Friday, Aug. 30 ) Aug. 28 Treasury bills: Canada 5.18 U.S. ) Spread favor Canada +0.14 Call Euro-$ deposit 5.91 Forward Canadian dollar -1.02 Federal Funds 5.95 Net incentive (Canada +) -0.88 6.25 Canadian Finance paper Chart 2 (Friday, Au^. 30 ) ) 5.32 Chart 5 (Friday, Aug. 30 ) Upper Panel - Euro-$ deposits: Call 30-day 6.00 6.31 90-day 180-day Treasury bills: U.K. 6.78 U.S. 5.18 6.12 6.31 Middle Panel Spread favor U.K. Hire-purchase paper Aug. 23 5.40 Euro-$ deposit Aug. 23 6.06 +1.60 U.K. local authority deposit n. a. Chart 6 Aug. 30 (Friday, Lower Panel Local-authority deposit Aug. 23 5 . 28 Euro-$ deposit 6.06 I. Aug. 23 Chart 3 Upper panel (Period: Aug. 24-31 Interbank Loan (mid-point) 3.62 (average) 3.48 Euro-$ deposits ) Treasury bills; U.S. 5.18 U.K. 6.78 Canada 5.32 Interbank loan rate (German) ( Aug. 24-31 ) 3.62 Euro-$ deposit (London) 6.12 Zurich 3-month deposit Lower Panel (date Aug. 15 ) (Date: Zurich 3-month deposit Aug. 15 ) 3.75 ) 7.52 3.75* Japan Composite rate Euro-$ rate (covered)Aug. 31 3.89 (Date: II. Price of gold (Friday, Aug. 30 ) *July 23 3.75 July 31 Aug. 7 3.75 3.75 39.68 June 28 ) H. 13 N o , 366 - II. b - Chart U.S. G o v ' t . (Wed., S e p t e m b e r 4, 1968. Chart 9 7 Aug. 30) 5.10 U.K. W a r L o a n (Thurs., A u g . 2 9 ) 7.55 A g a i n s t U.S. d o l l a r s : German Fed. 6.24 Swiss f r a n c s + 2 . 1 1 D u t c h Glds. + 1 . 38 G e r m a n m a r k s +2. 58 Fr. Francs -4.18 £ Sterling Can, -1.02 Swiss C o n f e d . 28 (Friday, ) (Fri,, Aug. Aug. 30 (Fri., Canadian Gov't. ) ) (Wed. , Aug. 28 ) n. a. 6.45 A g a i n s t pound N e t h e r l a n d s Gov't. (Friday, Euro- $ bonds (Fri., U.S. E u r o - b o n d s ( - 2.60 Aue . Am^. Tuly 23 ) 6.53 Swiss francs ID ) 7.60 U.S. d o l l a r s 31 ) 7.29 $ sterling: +3.92 +2.23 Ger. m a r k s +5.60 Chart 10 U.S. C o r p o r a t e Aaa (.T,,1V N ) fi. 26 U. S. ( Chart 8 (Friday, Aug. 30 J a p a n ( Aug. ) Swiss f r a n c s + 1 . 7 2 D u t c h Glds. - 0 . 2 0 German marks+0.72 Can. U.K. £ Ster. -0. 69 $ It. L i r e B e l g i a n f r a n c s - 0 . 4 0 Jap. Y e n s F r e n c h francs Aug. U.K. (Fri., +0.76 Switzerland +0.39 Germany +0- 14 Canada 30 ) 30 Aug. 30 (Fri,. ( ( 218.7 _) 293. 8 ) 281.2 Aug. 30 ) ) Aug. 22 ) -0.74 F o r d e s c r i p t i o n s and sources of data, see Special Supplement No. 343-S dated M a r c h 27, 1968. 335.2 n. a. 208.6
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