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Not f o r Publication

DECONTROLLED AFTER SIX M N H
OTS

H.lU
Li:.r.ARY
FEr

0 1S61

February 6, 1961.
1 CAPITAL MARKET, DEVELOPMENTS
A I'illi) UUllMI olJLTES AND C N D
AAA
(Including S p e c i a l Review of Honey and
Capital Markets in Switzerland)
Part I - United S t a t e s

State and l o c a l governments sold l a r g e i s s u e s with t o t a l proceeds
of $117 m i l l i o n during the week ending February 3. No l a r g e c o r p o r a t e
i s s u e s were sold l a s t week. This week, t h e calendar includes one corporate
offering for
m i l l i o n and two S t a t e government i s s u e s with aggregate
proceeds of $23 m i l l i o n .
Long-tenil bond y i e l d s - Bond y i e l d s changed l i t t l e l a s t week.
Yields on S t a t e and l o c a l government bonds remained s t a b l e , while those
on corporate and U. S. Government bonds declined s l i g h t l y .
During the month of January y i e l d s declined f o r corporate bonds,
but increased f o r other c a t e g o r i e s of seasoned bonds. The d e c l i n e f o r
corporate y i e l d s was 2-6 b a s i s p o i n t s and the i n c r e a s e f o r S t a t e and
l o c a l and U. S. Government o b l i g a t i o n s £-11 b a s i s p o i n t s . The average
y i e l d on new i s s u e s of corporate bonds f e l l Ui b a s i s p o i n t s , t o li.35> p e r
c e n t , about equal to the i960 low reached in August.
Short- and intermediate-term i n t e r e s t r a t e s - Yields on Treasury
b i l l s increased s u b s t a n t i a l l y l a s t week, while those on intermediate-term
i s s u e s remained s t a b l e . Other major s h o r t - t e r m money r a t e s were unchanged.
Yields on Treasury b i l l s increased 8 b a s i s p o i n t s i n January,
and t h o s e on 3 - 5 year i s s u e s 2% b a s i s p o i n t s . Rates on d i r e c t l y placed
f i n a n c e company paper were lowered twice during the month.
F M . secondary market operations - Mortgage market easing
N A
continued to be r e f l e c t e d in December secondary market operations of
t h e Federal National Mortgage A s s o c i a t i o n . The d e c l i n e in o f f e r i n g s
of mortgages to F M and purchases by F M t h a t c h a r a c t e r i z e d the e a r l i e r
N A
N A
months of the year continued. Sales, amounting t o $23.3 m i l l i o n , were
higher i n the l a s t month of i960 than in t h e f i r s t 11 months combined.
Stock prices - Stock p r i c e s rose 2 p e r cent f u r t h e r l a s t week
in very heavy t r a d i n g a c t i v i t y . Standard and P o o r ' s index of 500 common
stocks, closed a t 62.22 on Friday, February 3, only s l i g h t l y lower t h a n
the Thursday peak. The volume of t r a d i n g averaged .lu9 m i l l i o n shares a
day.




-3During the month of January, stock p r i c e s rose 6 per cent and
t r a d i n g a c t i v i t y averaged a record it, 2 m i l l i o n shares a day.
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented i n the a t t a c h e d e x h i b i t s .
Developments i n the Canadian c a p i t a l market a r e presented i n
P a r t I I of t h i s r e p o r t and a s p e c i a l review of the Swiss money and
c a p i t a l markets i s appended.

C a p i t a l Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




JXHltlT A
_
L O N G - T E R M B O N D YIELDS

HIGH-GRADE

A/

LOWER-GRADE

Y\j




Z

U.S. eOVIKHMINT

Exhibit B - Tables f o r Exhibit A
Long-term Bond Yields
High-grade

Date

Corporate
Aaa y

State and
local
government
Aaa 3 /

U. S. Govt.
long-term 2/
(per cent)
2.1t5 (8/6)

1.90 (9/2)

3.76
3.07

(10/18)
(4/25)

2.6U (5/1)

lt.it2

(l/P/60)

Spread between
U. S. Govt, and
Corporate State and
Aaa
l o c a l Aaa

195It - Low
1957 - High
1958 - Low
1959-60 - High
1961 - High
Low

3*55 (5/2)

h.3k (1/6
4.30(2/3)

3.92 (1/20)
3.81t (1/6)

3.16 (1/19)
3.13 (1/5)

.30
.60
.22
.59
.50
.itO .

Jan.
Jan.
Jan.
Jan.
Feb.

h.3h
1.33
it. 32
it. 31
It. 30

3.Bit
3.90
3.92
3.89
3.88

3.13
3.lit
3.16
3.16
3.16

,50
.it3
.itO
.it2
.it2

6
13
20
27
3 £/

2 . 8 5 (4/23)
i t . l L (9/27)
It. 6 1 (1/29/60)

3.it5 (8/29)
3 . 6 5 (9/24/59)

•30
.50
.3it
. .92
.76
.71
.71
.76
.76
.73
.72

Lower grade

Date

195it - Low
1957 - High
1958 - Low
1959-60 - High
1961 - High
Low
Jan.
Jan.
Jan.
Jan.
Feb.

6
13
20
27
3 2/

£/ Preliminary.
1/ Weekly average of
2/ Weekly average of
3/ Thursday figures.
Note .—Highs and lows

Corporate
Baa 1 /

S t a t e and
local
government
Baa 3/
(per cent)

3.itU (12/31)

2.93 (8/5)

5 . 1 0 (11/29)
it. 5 1 (7/11)
5 . 3 6 (2/12/60)

it. 5 1 (8/29)

it.it6 (1/7/60)

5.12 (1/27)
5.08 (1/6)

it.09 (1/19)
it. 03 (1/5)

5.08
5.10
5.11
5.12
5.09

it. 03
it.oit
it. 09
it.09
it. 09

3.6it (5/1)

Spread between
Aaa and Baa
State and
Corporate
l o c a l Kovt,
.52
1.27
.77
.8it
.7it
.81

.96
1.21
.93
1.08
.93
.90

.7it
.77
.79
.81
.79

.90
.90
.93
.93
-9,3

dally figures. Average term of bonds Included i s 25-26 years.
dally figures. The series Includes bonds due or callable In 10 years or more.
Only general obligation bonds are Included; average tern Is 20 ysars.
are for Individual series and nay be on different dates for different series.




.

GOVERNMENT

13 - 5

YEAR

ISSUES

[PRIVATE




f fTl NANCE

COMPANY

PAPEI

iDlntlly Plac.d

Exhibit D - Tables f o r Exhibit C

-7-

Short- and Intermediate-tern I n t e r e s t Bates
Government
Date

Discount
rate

_1Z_

1951* - Low
1.50
1957 - High
3.50
1958 - Low
I.75
1959-60 - High II.OO
1961 - High
n.a.
Low
n.a.
Jan.
Jan.
Jan.
Jan.
Feb.

6
13
20
27
3 £/

3.00

.3.00

3.00

3.00

3.00

Yields
6-month
b i l l s 2/
(per cent)

3-month
b i p s 2/
.61 (6/11)
3.62* (lo/ie)

3-5 year
issues 2/
1.66

3.02 (12/26)
h.59 (i/a/60) 5.07 (1/8/60)
2.51
2:17 il^27) 2.1*2 (1/27
. 5 8 (5/29)

2.28
2.28
2.25
2.17
2.29

2.18
2.51
2.46
2.1*2
2.1*9

.66

(4/30)

l*.0l* (10/18)
2.11* (6/6)
5.00

Spread between y i e l d s on
3-month b i l l s and y i e l d s on
6-mo. b i l l s 13-5 y r . issue's"

(12/24/59)

li@'
3.39
3.52
3.59
3.57
3.57

.26

.79
.25
.20

.20
.23

.21
.25

.20

.86
.01*
1.81
1.1*0

1.11
1.11

1.21*
1.31*
1.1*0
1.28

Private
Date

Spread between 3-month
Prime
Finance company Treasury b i l l y i e l d and
rate 1 /
paper 3/
finance company
paper r a t e s
(per cent)

Stock Exchange
c a l l loan 1 /

1951* - Low
1957 - High
1958 - Low
1959-60 - High
1961 - High
Low

3.00
1*.50
3.56
5.50
n.a.
n.a.

3.00
1*. 50
3.50
5.oo
n.a.
n.a.

1.25
3.88
1.13
5.13
2.83
2.71

Jan.
Jan.
Jan.
Jan.
Feb.

l*.5o
l*.5o
i*.50
l*.5o
l*.5o

i*.5d
1*.50
l*.5o
1*.50
l*.5o

2.83
2.81
2.81
2.71
2.61*

6
13
20
27
3 £/

(12/31)
(11/15)
(8/8)
(1/22/60)
(1/6)
(1/27)

0 (12/18)
.63 (11/22)
I S

!3®«>

.55
.53
.56
.51*
.1*2

1 / Weekly rate shown I s ttwt In e f f e c t a t end of period. Dlaoount rate I s for Federal Reserve Bank of New York.
Stock Exchange call loan r a t e I s going rate on call loans secured by customers' stock exchange c o l l a t e r a l a t
New York City banks. Prime rate I s t h a t charged by large banks on short-term loans t o business borrowers of
the highest credit standing.
2/ Market y i e l d j weekly averages computed from daily closing bid p r i c e s . Series of 3-5 year Issues consists of
selected notes and bonds.
3/ Average of A l l y r a t e s published by finance companies for directly placed paper for varying maturities i n the
90-179 day range.
Note.—Highs and lews are for individual seri e s and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s , tor spreads,
high r e f e r s t o widest, and low to narrowest.




STOCK

MARKET

PURCHASES




Exhibit F - Tables f o r Exhibit E
S t o c k Market
Stock p r i c e
i n d e x 1/

Date

9 5 7 - 6 0 - High
Low
9 6 1 - High
Low

60.51
39 - U8
62.22
58.1*8

ecember
anuaiy
a n . 20
a n . 27
eb. 3 e /

Trading
Common
stock
volume 3 /
yields 2/ (millions
( p e r c e n t ) of s h a r e s )

(7/31/59)
(12/2 0/57)
(2/3)
(1/6)

56.80
59.72
59.96
61.24
62.22

Stock market customer c r e d i t "
Customers1
Bank
debit balloans to
a n c e s 1*/
"others11 5 /
( I n nuL l l i o n s of d o l l a r s )

Total

3.08
1*. 72
3.12
3.32

1+. 9
1.1*
1*.9
3.6

4 , 7 6 b (4/59) 3,1*01 (4/59) 1 , 3 7 3 (5/59)
3 , 551* (1/56) 2,1*82 (12/57) 1 , 0 6 0 (11/57)
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

3.1*1
3.28
3.2l*
3.18
3.12

3-7.
1*.2
lul
l*.l*
1|.9

1*,1*06
n.a.
n.a.

1,181*
1,163
1,158
1,163
n.a.

3,222
n.a.
n.a.
n.a.

n.a.

a,—Not available.
£ / Preliminary.
Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43*10. Monthly data are
averages of daily figures rather than of Mday's only. Highn and lows are for FH days' data only.
Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal
Reserve. Yields shown are for dates on which price Index reached i t s high or low.
Averages of dally trading volume on the New York Stock Exchange.
End of month figures for member fires of the New York Stock Exchange which carry margin accounts; excludes balances
secured by U. S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying D. S. Government
securities. Prior to July 1, 1959, such loans are excluded only at banks In New York and Chicago. Weekly reporting
banks account for about 70 per cent of leans to others. For further detail see Bulletin. .
F e d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n S e c o n d a r y Market O p e r a t i o n s 1/
Date

1959 - Dec.
1960 - J a n . •
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec. 2 /

Purchases
E s t i m a t e d O f f e r i n g s t o FNMA
by
Standby
Immediate
Total
FNMA
commitment
( I n m i l ] Lions of d o l l a r s )
116.3
137.6
135.8
133.2
103.5
98.5
99.9
88.0
10l*.0
73.0
83.2
3/61.7
53.3

111.1*
128.3
128.9
121*. 6
96.2
93.8
93.7
82.9
89.1
69.8
68.6
56.9
51.1*

.

1*.9
9.3
6.9
8.6
7.3
1*.7
6.1
5.1
11*. 8
3.3
ii*.6
1*.8
1.9

92.2
86.1
116.7
135.0
102.6
91.9
60.8
93.7
75.6
63.O
58.8
51.6
1*5.5

Sales
by
IN M
A

3.6
1.0
3.2
.1
.8
1.1
8.9
23.3

l / ^%L*repMMnt%&ld principal balances of the mortgages involved, exclusive of premiums, discounts, or other charges. Offsringa are amounts of applications received durtng the period from
sellers propositi that F M execute purchasing contracts. An immediate purchase contract covers
NA
existing mortgages which ths seller must deliver to F M within 45 dsys. A standby comiAtment
NA
contract relates to proposed mortgages, on housing not yet under construction, which the seller
must usually deliver within one year. Puro!*.ses include thoue under both Immediate purchases and
standby ooamdtment contracts. Data exclude F M activity under Special Assistance and Management
NA
for FRASER
and Liquidating Programs.

Digitized


--

Exhibit G

Long-term Corporate and State and Local Government
Security Offerings and Placement's
(In millions of d o l l a r s )

1961
Januaiy
February
March

e/500
s/'t-b 0

April
May

577
' 715
860
766
567
1,03 4

July
August
September

821
738
646

2,151
2,367
2,427
e/2,742
1,519
6,945
e/9,687'

1 s t half
Three quarters
Year

879
864
900

639
858
646

731
550
1,033

932
593
1,006

572
602
689

535
740
703

p/965
2/927
e/850

quarter
quarter
quarter
quarter

739
623
582

2/725
e/500

894
785
887 .

727
962
738

October
November
December
1st
2nd
3rd
4th

New c a p i t a l
State and l o c a l 2/
Corporate 1/
I I960
1961
1 I960
1 1959
1 1959

IS
465

339
502
e/48I

597

2,204
2,567
1,979
2,642

1,943
2,316
1,863
E/1,322

2,143
2,531
1,548
1,571

4,771
6,750
9,392

4,259
6,122
E/7,444

4,674
6,222
7,793

.

"

.

Excluding finance companies 3/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Year
e/
\J
2/
3/

1,722
2,150
2,017
e/2,342

1,999
2,412
1,716
2,503

e/8,231

8,630

Estimated.
g / Preliminary.
S e c u r i t i e s and exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of p r i n c i p a l amounts.
Total new c a p i t a l issues excluding o f f e r i n g s of s a l e s and consumer finance
companies.




H.Ik

Extdbit H
Other S e c u r i t y O f f e r i n g s 1 /
( I n m i l l i o n s of d o l l a r s )
Long-teim
F o r e i g n government 2 /

January
February
March '

2 i
175
70

E

w

July
August
September

139
198
120

U48
351*

9
5
17

__
199

58
123
74

160
11*9
g/181

86

—

992

2/1,673

.70?

2,3?1

• 58
50
1*2

25
1
36

October
November
December

182
150
150

33
30
70

3k
'72
l»o

196
53

547 ,

April
May
June

01
60 •
2

F e d e r a l apency
i960
1959

3li

85
1
35,

Year

I

1

E

175
.

523

—

Short-tbrm

t
I

1,163
251

199

161*
98
150

—
220

• ,
•
Federal apency 3/

January
February
March

268
3ti5
365

190
.1428
295

233
I460
273

1*79
1*75
511

359
500
1*89

371
2Q8
11*1*

April
May
June

365
351
297

563
U l
21*5

357
351*
26h

509
632
1*35

1*86
675
2.8?

209
161
329

July
Atipu?t
September

505

260

216
1*67
399

289
1*23
369

312
1*68
' 296

727
365
665

.1*37
206
330

235
313
.358

h}5

733
1*71
288

1.51*
11%
137

li,179

3,910

6,01*7

3,09ft

October
November
December
, lear

;

m
25h
1*99
E/215

/3,9l*2

.

231

21*1
282
177.
E/ I t , 8 1 7

.

'

g/ Preliminary,
1/ Ctxta presented in thie exhibit d i f f e r from thou In Exhibit B In t t o t rerun-Unit leium, an well as new
wpltal leauee, are included. . Long-tar# eaeurltles are defined aa those na.tmf.ne. In more than ona year.
2/ Inoludos securities offured In the United S t a t u by foreign cevorrsmnto and their subdivisions and by
. lnUrnuUonnl organliatlons, Snuraai Securities and Zxuhr.tige Convni/inlor..
' 3/ iaouia not guar«t«ed by the U, S. Oo^rmer.?.. Souroai l o n g - t i n , Securities and Btehange Cor.ntiulonj
short-tern, Federal Reserve,
v
\
*•£/ Principally tax and bond anticipation not*a, warrants or eertlfteatee ar.4 Public Housing Authority
n»t*».. In soma Instances P A totes Ineludid may have a somewhat longer tons thin one yeaf.• Seureei Bond Buyer.
H




-12-

Exhibit I
Large Long-teim Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large I s s u e s Offered
(In m i l l i o n s of d o l l a r s )

Month -

Corporate

i960 - January
February
March
April
May

S t a t e and
l o c a l government
388
283
225
370
23h
561
191
298
367
h6
186
222
391

279
262
381*
309
139
W?
303
581
266
566
he 5
260
lh7

July
August
September
October
November
December
1961 - January

Other 2/

100
320
191
71
28
30
75
25
77
150
99

Large Individual Issues Offered February 1 through 3
Issuer

•type 3/

Coupon
Amount
r a t e or Offering Rating
( m i l l i o n s Maturity
n e t i n t e r - yield
of
dollars)
e s t cost

CORPORATE
None
STATE AND LOCAL GOVERNMENT
S t a t e of Connecticut
Houston -Lnd. S c h . / D i s t . ,
Texas
Milwaukee Co., Wise.
Kentucky Turnpike Auth.
Term
Serial
Chicago - 0 'Hare I n t ' l
Airport
OTHER
None




G.O.

29.0

1961-80

2.83

1.90-3.10

G.O.
Rev.-Ut.

lk.0
10.3

1963-89
1962-81

3.30
2.87

1.70-4.00
1.50-3.15

Rev.-Ut.
Rev.-Ut.

21.2
17,8

2000
1965-81;

it. 86

In 80
3.50-4.60

Rev.-Ut.

25.0

1999

4.66

h.SO

A
Aaa

1-2

-13-

Footnotes
1/
2/
J/

Includes corporate and other s e c u r i t y o f f e r i n g s of $15 million and over; S t a t e
and l o c a l government s e c u r i t y o f f e r i n g s of $10 m i l l i o n and over.
Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
In t h e case of S t a t e and l o c a l government s e c u r i t i e s , G.O. denotes general
o b l i g a t i o n s ; Rev.-Ut., revalue o b l i g a t i o n s secured only by income from p u b l i c
u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from q u a s i u t i l i t i e s ; Rev. - S . T . , revenue bonds secured by revenue from s p e c i f i c t a x e s
only; Rev.-Rent., revenue bonds secured s o l e l y by l e a s e payments.




Exhibit J

-ill-

Forthcoming Large Long-term Public Security Offerings f o r New Capital
( o t h e r than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
Date of
computation
1960 - Jan. 29
Feb. 29
Mar. 31
Apr. 29
May 31•
June 30
July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30
1961 - Jan. 31

During month following
date shown
State and
20?
301
299
202
1*83
237
596
21&
#6

ao
260
91
110

210
255
259
243

277
180
275
283
212
258

242
1*12
181

hS
35

30
30.
77
50

Subsequent to
date shown
State and
Corporate l o c a l govt. Other 2/
372
372
3hh
357
#3
165
1,006 •
731
836
585
335
1,036
1,016

310
385
260
258
502
380
321
283
336
391
560
682
360

15
35
60
30

'

127
50
—

Forthcoming Large Offerings, as of February 3
Type
CORPORATE
Consolidated Natural Gas Co.
Southern Co.
Chesapeake & Potomac Telephone Co.
Puget Sbund Pwr. & Light Co..
^General Motors Accept. Corp.
American Machine & Foundry Co.
American Telephone & Telegraph Co.
Commerce Oil Refining Coip.
Liberian Iron Ore.-, Ltd.
Realty C o l l a t e r a l Corp.

Amount
(millions Approximate date
of o f f e r i n g
of dollars)

Deb.
Com. s t k .
Deb.
1st mtg. bds.
Deb.
Conv. deb.
Com. s t k .
Deb., bds. & com.
Bds. & s t k .
Coll. t r . notes

1,5.0
30.0
20.0
15.0
150.0
1*0.5
e/800.0
I6.0
30.0
20.0

Feb. 8
Feb. 15
Feb. 16
Feb. 16
Feb. 17
Mar. 16
( r i g h t s expire)
Apr. Ill
( r i g h t s expire)
Indefinite
Indefinite
.Indefinite

STATE AND LOCAL GOVERNMENT
S tate of North Carolina
State of Texas
St. Louis, Missouri
Baltimore, Maryland
Dallas, Texas
-^Denver, Colorado
#State of New Jersey
St. Paul, Minnesota
Los FRASER
Digitized forAngeles Dept. of Wtr. & Pwr.,
California
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.

10.0
12.5
15.8
32.6
19.0
15.0
20.9
10.6

Feb.
Feb.
Feb.
Feb..
Feb.
Mar.
Mar.
Mar.

8
9
15
15
20
7
7
8

Rev.-Ut.

12.0

Indefinite

-15-

J-2
Forthcoming Large O f f e r i n g s , a s of February 3 (Cont'd)
Amount
(millions
of d o l l a r s )
STATE AND LOCAL GOVERNMENT (Cont'd)
Orleans Parish School D i s t . , La.
Dade County, Florida
New York State Housing Fin. Agency

G.O.
G.O.
Rev.

10.0
1*6.0
100.0

Indefinite
Indefinite
Indefinite

OTHER
None
* - - I n e l u d e d in t a b l e f o r f i r s t time.
e / Estimated.
1 / Includes corporate and other i s s u e s of $15 m i l l i o n and over3 State and l o c a l
government i s s u e s of $10 million and over.
2/ Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
Note.—Deletions f o r reasons other than s a l e of i s s u e : Liberian Iron Ore, Ltd.
$30.0 m i l l i o n bonds and stock issue—arrangements made f o r loans with
the Export-Import Bank and f o r e i g n f i n a n c i a l i n s t i t u t i o n s .




Exhibit K
l i c l d o oh Nov: and Outstanding
ELcctric Power Bonds, Rated Aa and A 1/
Data

1952-1959 - High
Low
- July
Aug.
Sept.
Oct.
Nov.
Dec.
I960 - Jan.
Feb.
Mar.
Apr.
May 10
12
25
June 17
28
29
July 8
13
Sept. 15
23
28
Oct. 5
21
Nov. 4
16
17
18
Dec. 7
• -Jan. .12,
18
25

Aa-rated offorlng yioldg A-rated. offering y i e l d s
Amount above
Amount above
Actual
Actual oeasoned yields
(par cent) seasoned yields (per cent) (basis points)
(basis points)
5.30 (12/8/59)
2.93 (3/31/54)

£7
-3

*4.93
4.83

31
23

5.13^
*5.08
*5.30

36
42
63

5.09
4.82
4.91
It. 88

45
25
37
32

5.65 (9A8/59)
3.00 (3A7/54)

123
-15

5.07

17

*5.65
5.33

60

*5:3^/
4.97
5.14

5.10

13

51
28
35

5.20
1.82
4.84

25
27

tlk
4.78
4.85
5.00

4.60
4.55
4.44

27
17
24
22
.

33
4o

26
33
11

1.93
4.88

11
8
24

4.95

4.80

ii.88
5.05

43

. 49
11
7
-2

•—Single observation, not an average.
V Covers only 30-year f i r s t mortgage bonds, aa reported in Moody's Bond Survey.
Except whew indicated, the actual yiold figure and the amount above seasoned
yields are averages of offerings during the Indicated period and of the d i f f e r ences between thooe new offering yields and yields on seasoned issues of similar
quality f o r the ecuia day. Average maturity for the seasoned issues varies frou
26 to 58 years.
2 / Provides f o r a 5-year period during which Issue may not be called for refunding
at a lower coupon rato. Monthly averages so marked include one or more issues
with such a provision. Other issues have no such provision.




-17February 6 , 1961
P a r t I I - Canada
Canada:

Money and Capital Markets During January

The d e c l i n e i n Canadian i n t e r e s t r a t e s which commenced i n December
| continued i n January e s p e c i a l l y i n t h e s h o r t e r and intermediate s e c t o r s of
t h e market. Treasury b i l l s and intermediate bonds dropped about UO b a s i s
p o i n t s while longer-term Canadian bonds f e l l about 20 b a s i s p o i n t s . However,
the McLeod, Young, Weir UO Bond Average remained about steady with November
and December average i n d i c a t i n g l i t t l e change i n corporate and l o c a l
government y i e l d s o
Several f a c t o r s c o n t r i b u t e d t o the s u b s t a n t i a l easing i n s h o r t
money r a t e s . The chartered banks added t o t h e i r b i l l holdings, p a r t l y
because t h e i r loans i n January d e c l i n e d more than s e a s o n a l l y e Market r e p o r t s consider t h a t Bank of Canada buying of May 1961 i s s u e s and some growth
i n corporate l i q u i d i t y c o n t r i b u t e d to t h e easing of money r a t e s .
I n d u s t r i a l stock p r i c e s rose sharply i n January exceeding i960
h i g h s . The Canadian d o l l a r strengthened through January, r i s i n g above
101 (U.S. c e n t s ) a t end-January but eased to s l i g h t l y below 101 i n e a r l y
February.
There was a general i n c r e a s e i n bank l i q u i d i t y during the month.
The January d e c l i n e i n l o a n s , seasonally a d j u s t e d , a t l e a s t temporarily
i n t e r r u p t e d an 11-month expansion. At t h e end of January, the banks'
l i q u i d a s s e t r a t i o a t 17»U per c e n t was 0.6 p e r cent above the e n d - o f December l e v e l .
Money market. There was some d e c l i n e i n short-term i n t e r e s t
r a t e s through January," with Treasury b i l l y i e l d s d e c l i n i n g about 30 b a s i s
p o i n t s and s h o r t - t e r m acceptance r a t e s f a l l i n g somewhat more. The average
y i e l d of the 3-month Treasury b i l l a t weekly a u c t i o n s f e l l from 3»3b p e r
cent on January $ t o 3»0U per cent on January 26. The 6-month b i l l declined
during t h i s period from 3<>63 per cent on January 6 t o 3*36 per cent on
January 26 (see Chart and T a b l e ) .
There were l a r g e purchases of Treasury,
b i l l s by the chartered banks. They increased t h e i r b i l l holdings by $111
m i l l i o n ; on the other hand, the Bank of Canada sold $Ul m i l l i o n , and the
general p u b l i c sold $U6 m i l l i o n (see Table). The average y i e l d on d a y - t o day loans declined from 2.81 per cent i n the week ending January k t o 2.60
per cent i n the week ending January 2$0
There was a minor narrowing of the spread of the Canadian over
the United S t a t e s s h o r t Treasury b i l l y i e l d during t h e month from 1.07 per
cent on January $ t o 0.87 per cent on January 26. However, the discount on .
the forward Canadian d o l l a r kept the net i n c e n t i v e t o hold the Canadian
b i l l on a covered b a s i s a t around 0.^0 p e r cent p e r annum, t h e l e v e l a t the
end of Januaryo
Yields on short-term commercial paper i n leading Canadian
acceptance houses a l s o d e c l i n e d . There was a l s o some narrowing of the
spread over r a t e s i n the United S t a t e s as a r e s u l t of g r e a t e r d e c l i n e s i n




—8
1—
the Canadian r a t e s . During the month the. spread remained close to 1 p e r
cent p e r annum i n f a v o r of t h e Canadian p a p e r . The following t a b l e compares
r a t e s i n leading Canadian and U.S. acceptance houses:
Canada
January 5
12
19
26

United S t a t e s

Spread

3.50-3.75
3.50
3.50
3.25

2.63
2.63
2.63
2.38

1.00
0.87
0.87
0.87

Bond market. A general d e c l i n e i n bond y i e l d s accompanied the
easing of s h o r t - t e r m r a t e s . One-year Canadian Government bonds declined up
t o U6 b a s i s p o i n t s but i n t e r m e d i a t e - and long-term y i e l d s f e l l between
15 and 20 b a s i s p o i n t s as shown i n t h e following s t a t i s t i c s i

Maturity
Oct. 1962
S e p t . 1965
J a n . 1975-78
Sept. 1983

Yields (per c e n t per annum)
Jan. 5
J a n . 26'
3.87
U.82
5.36
5.37

3-Ul
U.68
5.2U
5.25

The spread between the y i e l d s on comparable Canadian and United S t a t e s
Government s e c u r i t i e s was narrower a t the end of January than i t was on
January 5 as noted i n the following t a b l e (Thursday y i e l d s f o r b i l l s and
Wednesday y i e l d s f o r bonds):
Jan. 5
91-day b i l l
182-day b i l l
8-year bond
20-year bond
35-year bond

1.07
1.15
0.99
1.37
1.59

J a n . 26
0.87
0.96
O.8I4
1.29
1.U8

The Bank of Canada sold $38 m i l l i o n of Government bonds during the month
and the chartered banks sold another $37 m i l l i o n , while the general public
purchased $23 m i l l i o n and the Government Accounts purchased $37 m i l l i o n .
There was l i t t l e change i n l o c a l government and i n d u s t r i a l bond
y i e l d s during the month. The McLeod, Young, Weir and Company U0 bond
average was 5.69 per cent on February 1, about t h e same as the y i e l d on
end-November and end-December. A comparison of t h e s e y i e l d s over r e c e n t
months i s shown i n t h e following t a b l e :




-19°
McLeod, Young, Weir Bond Yield Average
(per cent per annum)
Dec. 1
10
10
10
10
U0

Dec. 31

Feb. 1
1961

5.60
5.95
5.5k
5.62
5.68

5.68
5.97
5oU5
5.61
5.68

5.70
5.9b
5.19
5.62
5.6 9

Provincials
Municipals
Public u t i l i t i e s
Industrials
Bond y i e l d average

During the f i r s t 23 days of January 1961, $66U»5 m i l l i o n of new
s e c u r i t i e s were s o l d , c o n s i s t i n g l a r g e l y of new Government bonds» As
noted i n t h e following t a b l e , new i s s u e s i n January were about half t h e
volume i n November and December.
Of which sold
New i s s u e s
t o U.S.
Oct. 2h - Nov. 28
Nov. 28 - Dec. 31
Dec. 31 - Jan. 23
Source:

$l,53k.6 m i l l .
11
1,310.5
"
66U.5

0.0
1U»0
. 1.0

A. E. Ames & Co., Ltd.

In I960 as a whole t h e r e was a s l i g h t decrease i n new i s s u e s of
Canadian s e c u r i t i e s and a very s u b s t a n t i a l r e d u c t i o n i n s a l e s of these
s e c u r i t i e s i n the United S t a t e s . The t o t a l new i s s u e of s e c u r i t i e s was
$10.5 b i l l i o n compared with $11.7 b i l l i o n the year b e f o r e . I n i 9 6 0 t h e r e
was an i n c r e a s e i n new corporate and municipal bond i s s u e s while new
P r o v i n c i a l and Commonwealth i s s u e s showed a d e c l i n e . Of the t o t a l new
i s s u e s , $252.2 m i l l i o n were sold i n the United S t a t e s , j u s t over half of the
$U72.9 m i l l i o n of new i s s u e s sold i n t h e U.S. i n 1959» This decrease was
due s o l e l y to the d e c l i n e i n the s a l e of new P r o v i n c i a l s e c u r i t i e s i n t h e
United S t a t e s .
A new $100 m i l l i o n issue of Government of Canada 3-year bonds
was announced on January 18 and was oversubscribed with evidence of strong
f o r e i g n demand. The new i s s u e i s the f i r s t step i n f i n a n c i n g the'$525
million i s s u e which w i l l mature May 1 , 1961. The o f f e r i n g was f o r nonc a l l a b l e U per cent bonds, a t 98.50, t o y i e l d U.50 per cent t o m a t u r i t y on
May 1 , I 9 6 U . Another $50. m i l l i o n of t h i s i s s u e w i l l be taken by the Bank
of Canada i n exchange f o r an equal amount of the May 1, 1961 m a t u r i t y .
The Minister of Finance announced t h a t , as a r e s u l t of the s u c c e s s f u l
Savings Bond d r i v e , t h e Government has s u f f i c i e n t funds t o permit i t t o
r e t i r e t h e remaining $375 m i l l i o n of the maturing i s s u e and t o proceed i n
an o r d e r l y f a s h i o n with new bond o f f e r i n g s i n the coming months.
Chartered bank loans and money supply. During January t h e r e was
a $39 m i l l i o n decline i n general bank loans on a s e a s o n a l l y a d j u s t e d b a s i s ,
r e p r e s e n t i n g the f i r s t d e c l i n e i n 10 months„ General bank loans have r i s e n
s t e a d i l y since March I960 (except f o r no change i n October). The t o t a l
r i s e since March was $216 m i l l i o n , about U.5 per c e n t . The money supply




-20-

f e l l $97 m i l l i o n i n January following the seasonal r i s e of $123 m i l l i o n
i n December. During a l l of I960 the money supply rose $U28 m i l l i o n , or
3 . 3 per c e n t .
Stock market. The r i s e i n i n d u s t r i a l stock p r i c e s on the Canadian
exchanges, which began l a t e i n November, continued through January. In
January the Toronto index rose 2.9 per cent and the Montreal index rose
6 per c e n t s compared with a r i s e of 6.6 p e r cent i n t h e New York Standard
& Poor i n d u s t r i a l index, as rioted i n the following t a b l e •
Toronto

Montreal

New York
Standard

I960 - High
Low

532 .56
172.38

277.1
250.3

61 .U9
55.98

January 3
6
10
13
17
20
23 ....
27 "

52U.13
529.69
533.00
53U.25
535.91
2L0.63
5U2.08
239.5:0

276.1
282.0
285.6
290.2
287.0
292.1
292.5
292.7

60.87
61.86
63.07
62.77
63.U6
63.86
6U.86

Foreign exchange. The Canadian d o l l a r strengthened through
January from 100.59 (U.S. c e n t s ) on January 3 to 101 (U.S. cents) on
January 31, following heavy g r a i n s a l e s abroad a t the end of the month.
On February 3 the Canadian d o l l a r closed a t 10008U (U.S. c e n t s ) . There
was a narrowing of the forward discount on the Canadian d o l l a r from
O.UU per cent per annum on January 5, t o 0.37 per cent on January 26.
On February 2, t h e discount narrowed f u r t h e r t o 0.2$ per c e n t .

B r i t i s h Commonwealth Section
Division of I n t e r n a t i o n a l Finance
Board of Governors of the Federal Reserve System




-21-

S e l e c t e d Canadian Money Market and Related Data
3-mo. Treaa. b i l l s
Canada
Spread
*/
U . S J y over U.S.
1959 - High
Low
1960 - High
Low
Jan. 5

12

19

26

Feb. 2

6.16
3.25
5.1U
1.68
3«3U

3.18

3.22

3.0U

3.13

Canadian d o l l a r
Spot
3-no.
discount ( - 1
forward premium (+)<y

U.U9
2.80
U.63
2.10

2.96
0.30
1.62
-0.82

105.51
102.58
105.27
100.33

2.27
2.27
2.27
2.17
2.31

1.07
0.91
0.95
0.87
0.82

100.U7
100.63
100.66
101.05
100.88

—
——

—

100.36
100.56
100.53
100.95
100.81

~

Net i n c e n tive to
hold Can.
billg/

.

—

0.99
-0.91

1.99
-0.57

-o.ua

0.63
0.66
0.U5
0.50
0.57

-0.25
-0.50
-0.37
-0.25

a / Average y i e l d a t weekly tender on Thursday.
%f rConposite market y i e l d f o r the U.S. Treasury b i l l on Thursday c l o s e of b u s i n e s s ,
V
c / In U.S. c e n t s .
cf/ Spread between spot r a t e and 3-month forward Canadian d o l l a r on Thursday
c l o s i n g , expressed a s per c e n t per annum.
e / Spread over U.S. Treasury b i l l (column 3 ) , p l u s 3-month forward discount or
premium (column 6 ) .
S e l e c t e d Government of Canada S e c u r i t y Yields
6-mo. Treaa . b i l l s
Spread
over
Canada
u.s^/
1959 - High
Low
I 9 6 0 - High
Low
Jan. 5
12
19
26
Feb. 2

J
0/
ty
e/
y
g/
ry

6.2k
5.11
.5.33
1.99
3.63
3.18
3.53
3.36
3.U8

Intermediate
bonds (8 y r . )
Spread
over
Canyia
U.S.4/

Long-term bonds
(20 year)
(35 year)
Spread
Spread
Canada
Canada
a
a

1.36
0.85

5.05
U.73
5.28
U.68

1.61
0.95

1.37
1.29
1.29
1.29
1.29

5.23
5.20
$.20
5.18
5.19

1.59
1.50
1.U7
• 1.U8
1.50

5.30

1.37
—0.86

5.27
U.50
5.55
U.09

1.11
0.21

5.U2
U.63

1.15
0.98
1.06
0.96
0.98

U.70
U.68
U.73
U.72
U.68

0.99
0.82
0.78
•0.8U
0.82

5.19
5.17
5.20
5.18
5.18

u.uu

—
—

Average y i e l d a t weekly tender on Thursday.
Spread between Canadian auction r a t e and composite market y i e l d of U.S.
on c l o s e of business Thursday.
Government of Canada 2 - 3 A per cent of June 1967-68#
Spread over U.S. Government 2 - 1 / 2 per c e n t of 1963-68.
Government of Canada 3 - 1 / k per cent of October 1979*
Spread over U.S. Government 3 - l A per c e n t of 1978-83.
Government of Canada 3 - 3 A per c e n t of September 1996 - March 1998.
Spread over U.S. Government of 1995.




—

Canada: Changes i n D i s t r i b u t i o n of Holdings of Canadian
Government D i r e c t and Guaranteed S e c u r i t i e s
( m i l l i o n s of Canadian d o l l a r s , p a r v a l u e )
Bank of Canada
Treas.
Bonds
biH^
1960-Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
196l-Jan.
Source* Bank

Government
Total

General p u b l i c
Savings T r e a s .
bonds
bills
;Bonds

Chartered banks
Treas•
Bonds

+ 81
- 1
- 2U
-115
-103
- 23
- 11
+11a
- 6U
- 5U
+ 23
+ 69
- Uo
- 9
+ 78
+ 2k
- 8
- 9
+ 77
- Uo
- 59
- 7h
+ Uo
+ 31
+ 19
- 3
+ 78
+ 36
+ 3k
- 23
+ 6
+ 90
- 2
- U3
+ 66
6
+ 37
- 5U
+ 1
+ 15
- 8
- uu
+ 9
- 8
- 87
- 17
+111
+ 15
- kl
- 38
of Canada, Weekly F i n a n c i a l S t a t i s t i c a l
- 89

+ 55

+
+
+
+
+
-

k
79
17
k
9
27
28
12

+ U5

+126
+ 29
- 3k
- 37

+
-

3
29
31
26
29
31
19
26

- lU
- 5
+630
- 32
- 2

+
+
-

19
59
78
11
97
8
58
k2

- la

0

+ 55

+ 12
- I46

+ 95
+165
+ 98
+ 30
- 18
+ U6
- 5U
- 80
- 36
+ 72
- k6
- 78
+ 2?

S e l e c t e d Canadian F i n a n c i a l S t a t i s t i c s
( i n m i l l i o n s of Canadian d o l l a r s or p e r c e n t )
Nov.

Monthly
Dec.

Jan.

l o Money s u p p l y ^ /
1,808
Currency
1,718
1,838
Deposits
11,302
11,W
n,L55
Total
^
13,166
13,lU0
13,263
+ 123
Change i n p e r i o d
- 2Ul
97
628
U80
2 e Govt. d e p o s i t s
5U8
3 e General bank l o a n s £ /
5,027
5,117
5,078
+
56
+
90
Change i n p e r i o d
39
Uo New s e c u r i t y issuesj/
1,310.5
1,013.8
30L.5
0.0
1.0
Of which s o l d i n U.S.
1U.0
5» Govt. s e c u r i t i e s o u t 17,760
standing
17,239
17,99U
Treasury b i l l s
1,985
1,985
1,985
12,161
Bonds
12,377
12,179
Savings bonds
3,632
3,596
3,1*3
6 . C h a r t e r e d bank l i q u i d i t y
1,017
1,027
Cash r e s e r v e
998
8.2
8.1
. Cash r a t i o
8.1
Liquid a s s e t s
2,189
2,093
2,123
16.8
-.Liquid a s s e t r a t i o
17.3
17 .U
1 / Less f l o a t , end of p e r i o d .
2 / Monthly e s t i m a t e s only a r e s e a s o n a l l y a d j u s t e d ,
3 / Sources A. E. Ames & Co., L t d .




J a n . 12
1,756
ll,Wil
13,197
- 188
526
U,99li
51

17,759
1,985
12,16U
3,610
1,031

8.2

2,173

17.2

J a n . 19

J a n . 26

1,712
11,399
13,llil
56
U87
1,981
13

1,718
11,as
13,166
+
25
U80
L,981
•
5

17,750
. 1,985
12,163
3,603

17,739
1,985
12,161
3,593

:

1,021
8.1

2,16$

17.2

1,030

8.2

2,193
17 .U

-23New I s s u e s of Canadian Government, Local
Government, and Corporate S e c u r i t i e s
( m i l l i o n s of Canadian d o l l a r s )
I960
Government - d i r e c t
Government - g u a r a n t e e d
Provincial - direct
P r o v i n c i a l - guaranteed
Municipal
Corporation
Total
Less s h o r t - t e r m (under 1 y e a r )

8,6lii.O
250.0
279.0
381.L
1*71.1*
U99.8
10,1*95.6
6,1*90.0
I*,005.6

1959

1958

9,615.5
1*50.0
3W*.l*
1*36.1*
1*20.6
1*20.1
11,687.0
6,91*7.9
U,739.0

Hi,830.0
300.0
3U0.3
U51.0
1*61* .0
769.2
17,151*45
6,761.0
10,393.5

159.0
151.2
112.1*
50.3
1*72.9

125.0
70.0
175.3
116.7
1*87.0

Of which, s o l d i n t h e United S t a t e s
Provincial - direct
P r o v i n c i a l - guaranteed
Municipal
Corporation
Source:

25.0
67.0
110.9
j y
252.2

A. E . Ames & C o . , L t d . , Weekly Bond S a l e s Summary.




CANADA
THREE-MONTH
Thursday figure.

TREASURY
-

BILL

-

UNITED

STATES

RATES

\ ^

-

A/v

1
RATE

1

i

i

DIFFERENTIAL

i
AND

%
Vvi

.v

-V

—

-

A . A

i

1

FORWARD

1

1

CANADIAN

1

1- 1

z

1

1

DOLLAR

SFIEAD IN FAVOt Of CANADA

RATE

DIFFERENTIAL WITH

FORWARD




EXCHANGE- COVER

NIT INCENTIVE IN FAVOR OF CANADA

i

i

SELECTED

STOCK

CHARTERED

BANK

ASSETS

BANK

DEPOSITS

-

LESS

FLOAT

MARKET




Millions

of

Dollori

-26-

February 6 , 1961
Appendix 1
Switzerland:

Money and C a p i t a l Markets- i n I960
EiSS.

General background
Basic c h a r a c t e r i s t i c s of t h e money market
The money market i n I960
C a p i t a l market developments i n i 9 6 0

-

26
28
29
30

General background 0 To u n d e r s t a n d t h e p o s i t i o n of S w i t z e r l a n d as an
i n t e r n a t i o n a l f i n a n c i a l c e n t e r i t i s n e c e s s a r y t o know some of t h e s p e c i a l c h a r a c t e r i s t i c s of Swiss money and c a p i t a l m a r k e t s 0 Outstanding among t h e s e c h a r a c t e r i s t i c s i s t h e c o m p a r a t i v e l y low l e v e l of i n t e r e s t r a t e s normally p r e v a i l i n g as
evidenced i n t h e f o l l o w i n g t a b u l a t i o n of average y i e l d s on l o n g - t e r m government
bonds, i n p e r c e n t p e r annum,,
Country
Switzerland
United S t a t e s
Canada
France
Germany
Netherlands
United Kingdom
*
Source:

19 5 6

19 5 7

19 5 8

19 5 9

I 9 6 0*

3 oil
3o06
3.58
5.28
6.2
3.8k
U.73

3.6U
3.U7
U.10
5.92

3.19
3.U3
U.22
5.68
6.3
U.32
U.98

3.08
U.07
U.86
5.27
5.9
U.12
U.82

3.11
U.03
5.03
5.16
6.5
U.22
5.U1

606

U.58
U.98

Average through November (through October f o r France and Germany) 0
I n t e r n a t i o n a l Monetary Fund, I n t e r n a t i o n a l F i n a n c i a l S t a t i s t i c s ,
January 1961, p . 29.

The c o m p a r a t i v e l y low l e v e l of Swiss i n t e r e s t r a t e s r e s u l t s mainly from two cond i t i o n s s t h e l a r g e volume of s a v i n g s ( r e l a t i v e t o i n t e r n a l Swiss needs f o r
c a p i t a l ) a v a i l a b l e i n t h e Swiss m a r k e t , and o r i g i n a t i n g i n both Swiss and f o r e i g n
sources5 and r e s t r i c t i o n s on t h e o u t f l o w of c a p i t a l from S w i t z e r l a n d ,
C o n t r o l of c a p i t a l o u t f l o w t a k e s t h e form mainly of t h e requirement
t h a t a l l f o r e i g n placements i n S w i t z e r l a n d of s h a r e o r bond i s s u e s amounting
t o SF 10 m i l l i o n ( # 2 , 3 m i l l i o n ) o r more, and a l l term l o a n s (12 months or l o n g e r )
of t h e same o r l a r g e r magnitude t o f o r e i g n e r s , must have t h e a p p r o v a l of t h e




-27-

Swiss National B a n k . i / I t i s t r u e t h a t d i r e c t a c q u i s i t i o n of f o r e i g n s e c u r i t i e s
i s u n r e s t r i c t e d (except t h a t admission of f o r e i g n s e c u r i t i e s to Swiss stock exchanges can be temporarily discontinued)$ but the existence of t h i s freedom app a r e n t l y does not f r u s t r a t e t h e purposes of t h e c o n t r o l of new f o r e i g n i s s u e s
on t h e Swiss market and on term lending abroad.
The requirement of Swiss National Bank approval of such i s s u e s and
lending would obviously be a mere f o r m a l i t y i f approval were granted more or
l e s s automatically; but t h i s c o n t r o l i s anything but a f o r m a l i t y . "The Swiss
market has t h e d e f e c t s of i t s q u a l i t i e s . The low i n t e r e s t r a t e s , i t s g r e a t
advantage . . . can only be preserved by l i m i t i n g t h e c a l l s made upon t h e
market, which i n consequence i s f a r from being an open one. There i s always
a long queue of would-be borrowers . . . The normal p r a c t i c e of the a u t h o r i t i e s
i s t o allow a t most one f o r e i g n i s s u e a month and the i s s u e i s u s u a l l y r e s t r i c t e d
t o a maximum of around
m i l l i o n /around $l£ million/% * (London F i n a n c i a l Times,
October 3 , I960, p . l . ) E 7 In f a c t , f o r t h e two y e a r s p r i o r t o August 1950 t h e
Swiss market was completely closed t o f o r e i g n borrowers.
There appear t o be two main motives f o r t h e b a s i c Swiss p o l i c y of
l i m i t i n g c a p i t a l outflow. The f i r s t i s t h e politico-economic o b j e c t i v e of keeping
mortgage r a t e s r e l a t i v e l y low a t a l l t i m e s . The second i s t h e Swiss d e s i r e t h a t
Switzerland be a center of i n t e r n a t i o n a l f i n a n c e . The a u t h o r i t i e s apparently f e e l
t h a t i n the absence of r e s t r a i n t on Swiss lending and investment abroad, the flow
of Swiss capital—which, although l a r g e r e l a t i v e t o Swiss i n t e r n a l needs, i s
small r e l a t i v e t o those of l a r g e r countries—would be completely swallowed up by
f o r e i g n needs f o r c a p i t a l , and the Swiss c a p i t a l market would cease t o have a
s i g n i f i c a n t i n f l u e n c e of i t s own upon the world f i n a n c i a l scene.
In addition to these e s s e n t i a l l y permanent motives f o r l i m i t i n g c a p i t a l
outflow, the Swiss have another motive operative only at c e r t a i n times and under
c e r t a i n c o n d i t i o n s . Given the continuing tendency f o r Swiss i n t e r e s t r a t e s t o
be lower than r a t e s i n most other c o u n t r i e s , and t h e r e l a t i v e smallness of t h e
Swiss c a p i t a l market, i t appears t h a t when t h e economy i s booming and l i q u i d i t y
i s squeezed t h e r e i s a tendency f o r c a p i t a l outflow t o put g r e a t e r upward p r e s sure on i n t e r e s t r a t e s than t h e a u t h o r i t i e s f e e l i s d e s i r a b l e . This was t h e
reason f o r t h e closure of t h e Swiss c a p i t a l market t o f o r e i g n borrowers from
mid-1956 t o mid-1958.
A s p e c i a l motive f o r Swiss r e s t r i c t i o n of c a p i t a l exports i n c e r t a i n
d i r e c t i o n s during the p a s t two years should also be noted. In connection with
1/ Loi ffedferale sur l e s banques e t l e s c a i s s e s d*&pargnes, November 8, 193b,
A r t i c l e 8*. Under c e r t a i n conditions t h e National Bank may a l s o s u b j e c t
smaller i s s u e s and loans t o p r i o r approval.
2 / From Table 3 annexed i t can be seen t h a t f o r e i g n i s s u e s on t h e Swiss market
did not exceed t h e r a t e i n d i c a t e d above during the f i r s t seven or e i g h t months
of I960, but were a t a considerably higher r a t e during the next few months.
This higher r a t e was probably due t o s p e c i a l circumstances t o be noted below*




-28-

t h e " s p l i t * between the s i x c o u n t r i e s of t h e European Common Market, on the one
hand, and other-European c o u n t r i e s (including Switzerland) t h a t wanted t o e s t a b l i s h a l a r g e r grouping of c o u n t r i e s , Switzerland imposed an informal but u n mistakable ban on new f l o t a t i o n s i n the Swiss market by Common Market c o u n t r i e s .
x
However, t h i s was l i f t e d as of the beginning of 1961, i n p a r t because of t h e
i n t e r e s t of Swiss o f f i c i a l s i n c u r t a i l i n g domestic l i q u i d i t y , which has become
very h i g h .
^ '
This l a s t point i l l u s t r a t e s t h e other main tendency i n Swiss f i n a n c i a l
p o l i c y , which i s t h e opposing one of r e s t r i c t i n g the inflow of c a p i t a l whenever
the monetary a u t h o r i t i e s f e e l t h e domestic s i t u a t i o n i s excessively l i q u i d . The
, Swiss National Bank has few means, other than "moral s u a s i o n , * f o r r e s t r a i n i n g
1 i n t e r n a l c r e d i t expansion once t h e banks have acquired the means f o r such expansion. Even i f i t did have such means, moreover, t h e r e would be strong i n t e r n a l
opposition t o e f f o r t s t o r e s t r a i n c r e d i t expansion by means t h a t might r a i s e
i n t e r e s t r a t e s s u b s t a n t i a l l y e As a r e s u l t , the Swiss technique of r e s i s t i n g i n f l a t i o n a r y pressure by monetary means c e n t e r s a t times i n e f f o r t s t o r e s t r a i n the
inflow of f o r e i g n funds or reflows of domestic Swiss f u n d s . In g e n e r a l , aside
from t h e ban on Common Market i s s u e s j u s t mentioned, Swiss monetary p o l i c y s i n c e
the l a t t e r p a r t of 1958 has emphasized t h i s a l t e r n a t i v e aspect of policy—namely
[f
t h a t of discouraging c a p i t a l inflows and encouraging c a p i t a l outflows, as a means ^
of r e s t r a i n i n g the r i s e i n the l i q u i d i t y of Swiss banks.
x
In summary, s h i f t s i n o f f i c i a l Swiss a t t i t u d e s toward inflows and
outflows of c a p i t a l g e n e r a l l y do not s i g n i f y changes i n underlying Swiss p o l i c y ,
but r e f l e c t r a t h e r the continued p u r s u i t of t h e same p o l i c y ends—low i n t e r e s t
r a t e s , and r e s t r a i n t of i n f l a t i o n a r y pressure—by means t h a t vary with v a r i a t i o n
i n t h e conditions f a c e d .

3^
v,l!
|

However, the movement of short-term money i n t o or out of Switzerland
i s i n f l u e n c e d by f a c t o r s a d d i t i o n a l t o i n t e r e s t - r a t e d i f f e r e n t i a l s . One leading
f a c t o r i s the d e s i r e f o r a " s a f e haven" f o r funds, which sometimes brings about
a s u b s t a n t i a l n e t inflow i n t o Switzerland even when i n t e r n a t i o n a l i n t e r e s t - r a t e
d i f f e r e n t i a l s would suggest the l i k e l i h o o d of a n e t outflow. Secondly, year-end
"window d r e s s i n g " leads t o a pronounced inflow of funds i n t o Switzerland a t t h e

I

p
Basic c h a r a c t e r i s t i c s of t h e money market. Paradoxical as i t may seem, P
Switzerland does not have a well-developed money market. This i s due e s s e n t i a l l y
t o what has been c a l l e d the "permanent l i q u i d i t y " of t h e Swiss economy. Trading
and i n d u s t r i a l firms do a l a r g e p a r t of t h e i r own short-term f i n a n c i n g , and r e l y
§•
mainly on current-account advances from the banks f o r t h e remaindera hence t h e
f
volume of commercial b i l l s i n existence i s very small. The government 1 s need
Igr
f o r short-term f i n a n c i n g i s small r e l a t i v e t o t o t a l government d e b t , and i s l a r g e l y
covered by the banks without recourse t o p u b l i c i s s u e s of government s e c u r i t i e s .
As a r e s u l t , t h e r e i s no market i n Treasury or commercial b i l l s . The main a v a i l a b l e ^ . - '
i n d i c a t o r s of money-market conditions are call-money r a t e s and t h e range of r a t e s
V:<y'
paid by Zurich banks f o r three-month d e p o s i t s (see Table 1 annexed)5 and a t times
these r a t e s are merely nominal. Since the supply of short-term money a t t h e
d i s p o s a l of Swiss banks i s u s u a l l y much g r e a t e r than the demand f o r such funds
i n Switzerland, even at t h e low r a t e s obtaining i n the Swiss market, a subs t a n t i a l p a r t of t h i s money i s u s u a l l y invested i n other f i n a n c i a l c e n t e r s .
^4'




3

-29°
end of the y e a r , which i s reversed during t h e f i r s t q u a r t e r of the following y e a r .
F i n a l l y , t h e dost of forward cover may of course eliminate what would otherwise
i be an i n c e n t i v e t o move funds i n response t o i n t e r e s t - r a t e d i f f e r e n t i a l s . A l l
t h r e e of t h e s e f a c t o r s a f f e c t e d the performance of t h e Swiss money market during

I960.

The money market i n I960. During t h e f i r s t h a l f cf I960 the money
market was not excessively l i q u i d . There was a continued r i s e i n economic a c t i v i t y ,
and up u n t i l mid-May a continued outflow of f u n d s . During the f i r s t h a l f of the
y e a r , current-account balances a t t h e Swiss National Bank were drawn down by about
SF 650 m i l l i o n ($151 m i l l i o n ) . As Table 1 annexed shows, s h o r t - t e r m i n t e r e s t r a t e s
were p e r c e p t i b l y higher during t h i s period than during most of 1959» The c a l l money r a t e averaged s l i g h t l y l e s s during the second q u a r t e r than during the f i r s t ,
but at 2 per cent the r a t e paid on three-months' d e p o s i t s was higher than during
the f i r s t q u a r t e r .
Beginning i n t h e second week of J u l y the s i t u a t i o n changed a b r u p t l y .
During t h a t week the f o r e i g n exchange r e s e r v e s of the Swiss National Bank r o s e by
SF 153 m i l l i o n . The heavy i n f l u x of c a p i t a l continued through the f i r s t week of
August, and r e s u l t e d i n a r i s e of SF 950 m i l l i o n ($220 m i l l i o n ) , or n e a r l y 12 per
c e n t , i n t h e gold and f o r e i g n exchange r e s e r v e s of t h e Swiss National Bank; i n
t u r n , " g i r o " balances ( i . e . working balances of the banks, of t r a d e , and of
i n d u s t r y ) a t t h e National Bank r o s e during t h e same p e r i o d by SF 962 million—
.nearly 50 per cent more than t h e decline i n t h e s e balances during t h e f i r s t h a l f
year.
I n t e r e s t r a t e d i f f e r e n t i a l s c o n t r i b u t e d t o t h e inflow of funds i n t o
Switzerland i n J u l y and e a r l y August. Although i n preceding months t h e r e had been
an i n c e n t i v e t o s h i f t short-term funds from New York t o London, i t i s probable
t h a t some "Swiss-controlled funds remained i n New York u n t i l t h e end of June a t
l e a s t , because u n t i l then i t was s t i l l p o s s i b l e t o c l e a r 1 per cent or b e t t e r (even
on a covered b a s i s ) i n New York, as compared with what could be earned on t h r e e months 1 money i n Switzerland. This was due t o the f a c t t h a t although U.S. Treasury
b i l l r a t e s were d e c l i n i n g , t h e discount on forward d o l l a r s i n Zurich was also dec l i n i n g 5 and during t h e l a s t week of May and throughout June i t was replaced by
a premium. With the disappearance of t h i s premium i n J u l y , however, the covered
spread between New York and Zurich also a l l b u t disappeared. As was c l e a r l y
r e a l i z e d a t t h e t i m e , however, the main causes o£ the sharp inflow of funds i n t o
Switzerland were the Congo.and Cuban c r i s e s t h a t developed a t t h a t t i m e . These
causes may also have been r e i n f o r c e d by f e e l i n g s of u n c e r t a i n t y i n some q u a r t e r s
regarding t h e outlook f o r t h e d o l l a r .
Whatever the causes of t h e i n f l o w , t h e r e s u l t i n g r i s e i n l i q u i d i t y
was viewed by the monetary a u t h o r i t i e s as dangerous. They t h e r e f o r e proposed
t o the banks a "gentlemen's agreement," which came i n t o e f f e c t i n mid-August.
Under t h i s agreement the banks agreed not t o accept f o r e i g n demand d e p o s i t s , not
t o pay i n t e r e s t on new f o r e i g n d e p o s i t s , and were r e q u i r e d t o charge l / h of 1 per
cent per calendar q u a r t e r f o r new f o r e i g n d e p o s i t s of l e s s than s i x months' d u r a t i o n . Deposits t o c e r t a i n small accounts and d e p o s i t s t o accounts used t o make
normal commercial and d e b t - s e r v i c i n g payments were exempted from a l l or p a r t of




-30-

t h e provisions of t h i s agreement. Although the agreement went i n t o f o r c e on
August 18, i t s provisions were not e f f e c t i v e l y applied u n t i l s e v e r a l weeks t h e r e a f t e r , because of t h e length of time required by the banks t o determined the owner
ship and c h a r a c t e r of t h e i r d e p o s i t s .
I t was estimated
Switzerland during J u l y was
September the National Bank
Treasury and t h e commercial
Swiss Treasury c e r t i f i c a t e s
s t e r i l i z e most of the Swiss

at the time t h a t about h a l f the c a p i t a l t h a t came i n t o
Swiss-owned r a t h e r than foreign-owned. In midt h e r e f o r e made s p e c i a l arrangements with t h e Swiss
banks t o place SF U00 m i l l i o n ($91 m i l l i o n ) worth of
with the commercial banks on October 1 , i n order t o
p o r t i o n of t h e c a p i t a l inflow.

Another heavy inflow of funds into Switzerland occurred i n the t h r e e week period from mid-October through November 7$ during which SF I488 m i l l i o n ($113
m i l l i o n ) i n d o l l a r s were sold t o t h e National Bank. I t i s believed t h a t t h e s e were
mainly Swiss-owned d o l l a r s and the d o l l a r deposits of Swiss bank customers. The
r e f l u x was touched off by nervousness over the London "gold r u s h " of mid-October,
and was r e i n f o r c e d by awareness t h a t s u b s t a n t i a l funds would have t o be brought
home soon i n any case f o r year-end "window-dressing" purposes. Swiss gold and
f o r e i g n exchange r e s e r v e s continued t o r i s e i n December, and a t year-end exceeded
SF 10 b i l l i o n ($2.3 b i l l i o n ) f o r the f i r s t time on record.
The monetary a u t h o r i t i e s apparently did not f e e l i t necessary t o
develop s p e c i a l measures t o absorb the increase i n l i q u i d i t y caused by the inflow
of funds from abroad during the l a s t q u a r t e r . As was noted e a r l i e r , however, they
did speed up somewhat the r a t e of issuance of f o r e i g n loans during t h e closing
months of t h e y e a r . (See Table 3 . )
I n t e r e s t r a t e s i n Switzerland remained q u i t e s t a b l e throughout 1960.
One of the few n o t i c e a b l e movements was the sagging of short-term r a t e s and also
of government bond y i e l d s i n August, following t h e massive inflow of f o r e i g n funds
in July.
C a p i t a l market developments i n I960. Data on new i s s u e s on the Swiss
c a p i t a l market through the t h i r d q u a r t e r of I960 are shewn i n Table 2 annexed;
f u l l information i s not y e t a v a i l a b l e f o r t h e f o u r t h q u a r t e r . T o t a l new i s s u e s
through September amounted t o SF 1857 m i l l i o n ($U32 m i l l i o n ) , and the t o t a l f o r
the y s a r may have f a i l e d t o reach the 19!?9 record of SF 2526 m i l l i o n . The 1959
r e s u l t s were due t o : (1) a sharp i n c r e a s e i n f o r e i g n bond i s s u e s (due p a r t l y a t
l e a s t t o the f a c t t h a t the Swiss market had been closed t o f o r e i g n borrowers
from mid-1956 t o mid-1958) which more than o f f s e t a d e c l i n e i n new Swiss bond
issues5 and (2) t o an even g r e a t e r e x t e n t , t o a near-doubling of Swiss share
issues.
So f a r as public o f f e r i n g s alone are concerned, however, a new peak
may have been reached i n I960, as the following f i g u r e s f o r the f i r s t 11 months
of each year suggest ( f i g u r e s i n SF m i l l i o n s ) s




-31New p u b l i c i s s u e s (January through November)
New i s s u e s

January
through
November
1957
1958
1959
I960

1077
815
686
890

Total

Retirement
of
securities

Net
new
m»n#y

1258
1015
1520
1572

21U
650
155
26U

10W
365
1365
1308

Swiss 1 Foreign | T o t a l

Bo n d s

5
87
U80
508

Swiss

1082
901
1166
1398

176
111
35U
17U

As may be seen from Table 2 annexed, t o t a l new i s s u e s declined sharply
during t h e t h i r d q u a r t e r . The d e c l i n e was e n t i r e l y i n p u b l i c l y - o f f e r e d i s s u e s )
p r i v a t e o f f e r i n g s rose s l i g h t l y , , A t h i r d - q u a r t e r d e c l i n e i n i s s u i n g a c t i v i t y i s
a normal tendency. The f o u r t h - q u a r t e r r i s e i n new i s s u e s l a s t y e a r — e s p e c i a l l y
of new f o r e i g n issues—may have been unusually s t r o n g , because of the d e s i r e ef
the a u t h o r i t i e s t o reverse some of t h e f o r e i g n exchange inflow during t h e l a s t
h a l f of the y e a r .
The following t a b u l a t i o n shows t h a t t h e Swiss Government i s net
normally a borrower on t h e Swiss c a p i t a l market, although t h e cantonal and cemmnnal governments do f i g u r e s i g n i f i c a n t l y as borrowers. In I960 as i n preceding
y e a r s , the e l e c t r i c power i n d u s t r y was the l a r g e s t borrower i n the market. The
following f i g u r e s ( i n SF m i l l i o n s ) give t o t a l i s s u e s (both p u b l i c l y and p r i v a t e l y
marketed) including conversionsg
Borrower
Central government
Cantons & l o c a l gov.
E l e c t r i c power
Manufacturing
Trade
Banks
Mortgage companies
Other
Total
1/ F i r s t nine months only.




19 2 7

1 9 5 8

19 5 9

80
209
360
23
f>0
U08
237
U5

1 9 6 o3/

313
555
62
8
66
167

209
351
85
16
91
313
.136

110
110
•M

1U12

1286

1201

779

97
298
22

The coupon r a t e on Swiss domestic bond i s s u e s during I960 ranged
from 3 - 1 A per cent t o 5 per c e n t , with most i s s u e s f a l l i n g between 3-1/2 and
h per c e n t . The coupon r a t e on f o r e i g n i s s u e s ranged from ij. t # It-1/2 p e r c e n t ,
with a U-l/2 p e r cent r a t e on most i s s u e s . The f o r e i g n i s s u e s placed i n t h e
Swiss market i n I960 are l i s t e d i n Table 3 . They included twe I.B.R.D. i s s u e s
f o r SF 60 m i l l i o n each*
Long and medium°term i n t e r e s t r a t e s . Long-term i n t e r e s t r a t e s , as
measured by the average y i e l d on Federal Government and Federal Railway bonds,
had declined i n 1958 and e a r l y 1959, but rose again a f t e r t h a t , i n p a r t because
of a considerable i n t e n s i f i c a t i o n of economic a c t i v i t y . In I960 the average
d e c l i n e d , from 3.32 per cent i n January to 2*95 p e r cent i n August, but rose again
somewhat subsequently, averaging 3.0li per cent during t h e l a s t q u a r t e r of t h e y e a r .
Medium-term r a t e s a l s o rose during t h e l a s t h a l f of 1959, and were r e l a t i v e l y
s t a b l e i n I960.
Stock market. The Swiss National Bank's index of i n d u s t r i a l share
p r i c e s i n Switzerland rose 27 per cent from the end of 1958 t e t h e end of 1959.
In I960 the r i s e u n t i l e a r l y September was much s h a r p e r , as t h e following
f i g u r e s indicates
I n d u s t r i a l share index:
market value i n %
of p a i d - i n value
Dec, 31, 1958
Dec. 31, 1959
March 25 s I960
June 2U
Sept. 9
Sept. 30
Oct. 28
Nov. 25
Dec. 30

599
759
759
956
1123
1066
1062
105U
1068

By September 9* the index had r i s e n U8 per cent from the end of 1959I and
d e s p i t e some subsequent d e c l i n e , t h e index a t year-end was s t i l l w e l l above
y e a r - e a r l i e r l e v e l s . The break i n mid-September was a t t r i b u t e d t o i n t e r n a t i o n a l
p o l i t i c a l t e n s i o n s and t o extensive p r o f i t - t a k i n g . Although the r i s e i n Swiss
share p r i c e s l a s t year was very marked, s e v e r a l other European stock exchanges
a l s o moved up s h a r p l y ; i n I t a l y and Germany the advance was even g r e a t e r than
i n Switzerland.

European Section
Division of I n t e r n a t i o n a l Finance
Board of Governors of t h e Federal Reserve System




Table 1 .

I n t e r e s t r a t e s i n Switzerland

Central
bank
discount
ratei/

Call
money
rateg/

111

New

il9S6
1957
1958

1.50
2.50
2.$0

1.U5
1.80
1.19

n.a.
1.51

3.00
3.56
3.57

3.05
3.60
3.U9

3.11
3.61*
3.19

3.51*
3.85
U.08

;.9S9
J 1 s t quar.
1 2d
•
j 3rd •
| Uth "

2.00
2.00
2.00
2.00

1.01
"T9&
.9h
1.01
1.15

1.39
r n
1.19
1.U9
1.79

3.02
530
2.98
2.95
3.05

2.99
?30
2.87 z
3.02
3.18

3.08
o r
3.06
3.12
3.21

3.86
OTT
3.86
3.78
3.76

,*960
% January
February
March
April
1 May
| June
I July
1 Aug.
y Sept.
' Oct.
, Nov.
Dec.

2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00

3.23
3.30
3.32
3.32
3.32
3.32
3.33
3.3U
3.33
3.35 ,
3.351/

532
3.32
3-32
3.32
3.32
3.32
3.32
3.32
3.35
3.35
3.3L,
3.31*1/

33?
3.30
3.23
3.13
3.07
3.05
3.00
2.95
3.0Q
3.03
3e°5 Q /
3.01+8/

3.76
J7fZ
3.76
3.76
3.76
3.76
3.76
3.76
3.76
3.76
3.76
3.76-,
3.76Z/

Period

r e
1.20
1.15
1.00
1.10
1.20
1.20
1.10
1.00
1.00
1.00

Thre*
months'
deposit
rated/

11/2-2
11/2-2
1 3A - 2
1 3A
2
2
2
1 1/2 - 1 3 A
1 3A
1 3A - 2
1 1 / 2 - 1 3/U
2

Interest on savings
bonds
12 pantpnal 5 large
banks!*/
banksS/

V End of p e r i o d .
2 j Rate f o r interbank l o a n s . Figures are p e r i o d averages of h i g h e s t and lowest
quotations of each week i n Zurich.
3 / Monthly figures are for mid-month. Quarterly and annual figures are averages of
Aonthly f i g u r e s .
h / Monthly f i g u r e s are end-of-month. Quarterly and annual f i g u r e s are averages of t h e
monthly f i g u r e s .
£ / Weighted average of y i e l d s t o maturity of 12 Government and Federal Railway bonds with
m a t u r i t i e s of a t l e a s t 5 y e a r s .
6 / Rate f o r new mortgages on houses and i n d u s t r i a l b u i l d i n g s .
y As of December 1$.
6 / Average of f i r s t t h r e e weeks.
Sources:

c a l l money r a t e and g o v ' t bond y i e l d from I . M . F . , I n t e r n a t i o n a l F i n a n c i a l
S t a t i s t i c s ; other d a t a from Monthly Reports of t h e Swiss National Bank.




-3UTable 2 .

New money r a i s e d on Swiss c a p i t a l market through bond and share i s s u e s
( i n m i l l i o n s of Swiss f r a n c s )

New Issues
BONDS

Swiss
Swiss| Foreign 1 T o t a l shares

Retirement

Total

securities^/
Bonds I Shares | T o t a l

Net
Money

Total new i s s u e s ( p u b l i c l y and p r i v a t e l y subscribed)

.

1957
1958

1527
1190

5
11*0

1532
1330

518
565

2050
1895

•

-

-

°

1959
1 s t quar„
2d
"
3rd «
l*th «

999
"225
281
189
303

1*81*
21?
55
139
75

11*83 1 0 U 3
UU1 "15IT
269
336
328
319'
291
378

2526
-S55
605
617
669

0

0

»

•

I960
1 s t quar«
2d
»
3rd »

397
231
151

m
135
75

361*
225

"203
230
221

"709
591*
1*1*6

0

0

0

1957
1958

1118
827

5
137

1153
96k

186
111*

1339
1077

203
61*5

12
9

215
65U

112U
1*23

1959
1 s t quar.
2d
3rd
l*th

686
"12?
163
119
179

U79
21?
55
135
75

1165
UHo
218
251*
251*

1*03
32
90
229
52

1568
1*72
308
1*83
305

137

163

12h
2
8

27
1
1
11
11

125
13
19

11:05
" W
183
1*70
286

I960
1 s t quar 6
2d
3rd

377
181
89

m
135
75

T9F
316
161*

13
90
l*o

" W
U06
205

"75
172
0

~0
3
2

"75
175
2

1*63
231
203

0

Publicly-subscribed new i s s u e s

Notes

.

—

D e t a i l s may not add t o t o t a l s , due t o rounding 0

1 / Swiss bonds and Swiss shares„
Sources:

La S i t u a t i o n Economique (November I960 supplement of La Vie Economique), p e 5*
and Monthly Reports of the Swiss National Bank,




-35-

Table 3 .

Subscription
period

Foreign bonds p u b l i c l y issued i n Switzerland i n I960

Borrower

Amount ( S F m i l l i o n s )
Total
Conversion

Rate
of
interest

Issued
at

Yield Mattxrity

jTan. 29-Feb.5

I.B.R.D.

60

—

k 1/2

100

U.50

1972

> b . 23-29

Belgium

50

50

k 1/2

98

U.7U

1972

Australia

60

—

k 1/2

99

U.60

1975

B r i t i s h Petroleum
Co., Ltd.

60

k 1/2

100

U.5o

1975

^ a r . 16-23
Dr. 25-29
1
19-21
1
J ; 21^-29

1

; 3- 15-22

1

: - p t . 23-29

I n t e r n a t i o n a l Standard
E l e c t r i c Corp., N.Y.

50

15

4 1/2

100

U.5o

1970-78

Saskatchewan Province

UO

—

4 1/2

100

U.5o

1975

Badenwerk S k t i e n g e s e l l schaft

50

3U.9

h 1/2

60

I.B.R.D.

apt. 29-0ct.U Cal-Tex
w. 7-12

City of Quebec

& U.501Z 1966-77
U.621/

—

h

100

60

—

hl/h

100

U.25

1975

20

—

U 1/2

100

U.50

1972-78

U.oo

1975

B r i t i s h Aluminum Co.,
Ltd.

50

—

U 1/2

100

u.50

1965-75

?Nov. 8-lit

Norway

50

—

h 1/2

100

u.50

1975

Nov. 29-Dec.5

Denmark

50

——

k 1/2

100

U.50

1975

let. 19-25

1 / For the conversion.
y For t h e cash s u b s c r i p t i o n s .
Source:

Swiss National Bank, Monthly Report ( B u l l e t i n nensuel) f o r December I960.




. .

UNITED

, WEEKLY

SPOT

AND

FORWARD

KINGDOM

STERLING

Y

RATES

SPOT

Million)

CHANGE

TRADE

ON

OFFICIAL

FOI t E l G N

EXCHANGE

RESERVES

ACTUAL C A G
HN E

L

fii

n

h

«

of X

BALANCE

»d.
Ii n

of t

MHIIom

MONTHLY

6U T D C A C .
J SE
HNE
iMdol

n

/

I

-

1
I

n H i i » - i > i t l r l i L i r . i i

11

—

1959




1940

11*1

. .

)'


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102