, CAPITAL MARKET DEVELOPMENTS ABROAD

Transcription

1 DIVISION OF INTERNATIONAL FINANCE BOARD OF SOVERNOM OF THE 1 * 2 6 2, CAPITAL MARKET DEVELOPMENTS ABROAD A U G U S T ' 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 4 Chart 5 Chart 6 Chart 7 Chart 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 Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months)

2 NEW YORK, LONDON, MONTR HAL: YIELDS FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS DOLLAR DEPOSIT RATES± NEW YORK^ONDON RO DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURO DOLLAR OVER U.S. CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES (covered), QUOTED IN NEW YORK AUG IP 7 28 CANADIAN FINANCE. COMPANY! U.K. HIRE PURCHASE U7S. FINANCE COMPANY Mar. 'l964 Sept. Dec. Mar. Jun. Sept. Dec. Mat Sept. Dec S6

3 LONDON: YIELDS FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS EURO-DOLLAR DEPOSIT RATES 180 DAY 90 DAY CALL HIRE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered). EURO-DOLLAR DEPOSIT HIRE P U R C H A S E DIFFERENTIAL FAVOR HIRE PURCHASE 1 I FAVOR EURO-DOLLAR f LOCAL AUTHORITY DEPOSIT EURO DOLLAR DEPOSIT D I F F E R E N T I A T FAVOR LOCAL AUTHORITY FAVOR EURODOLLAR

4 INTEREST ARBITRAGE: FRANKFURT/LONDON, ZU R ICH / LO N DO Nj FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF DM_ INTERBANK LOAN RATE E U R O D O L L A R r T DIFFERENTIAL FRANKFURT FAVOR EURO DOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO DOLLAR RATE (COVERED) IN TERMSVok/W* S FRANCS EURO DOLLAR S W I S S DEPOSIT RATE j p DIFFERENTIAL FAVOR ZURICH FAVOR EURODOLLAR -Kill PRICE OF GOLD IN LONDON

5 INTEREST ARBITRAGE, UNITED STATES/CANADA fridoyligurei f«3-month TREASURY BILL RATES. FIN. CO. PAPER CANADA UNITED STATES BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR SPREAD IN FAVOR OF CANADA 'REMIUM FORWARD RATE DISCOUNT 1,,,, r~ 3 -MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CANADA PRIME FINANCE PAPER / M. I\J I M L AVON U.S. FAVOR CANADA FAVOR U S I I I I I I I I

6 INTEREST ARBITRAGE, NEW YORK/LONDON Friday figures 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS HEW YORK RATE DIFFERENTIAL AMD 3 - MO NT H FORWARD STERLING SPREAD IN FAVOR OF LONDON 1 I FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) I IN FAVOR OF LONDON -LA- IN FAVOR OF NEW YORK 1 I 1 I I I I I I I I I I 1 1 I I 1 1 I I I I I I I I I I I I I I M J S D M J S O M J S D M J S D

7 I SHORT-TERM INTEREST RATES * U.K. A / EURO-DOLLAR - LONDON U.S. SWITZERLAND JAPAN CANADA GERMANY U.S Switzerland (3 month df poul ftiie) nnd Germany I 3 month role I or U S dollar de po VH m t on do n (interbank loon Rn'f)

8 LONG-TERM BOND YIELDS GERMANY JUL V EURO-DOLLAR BONDS U.S.I NETHERLANDS CANADA US. SWITZERLAND

9 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS'FRANC K. STERLING II I 11 JAPANESE YEN

10 3-MONTH FORWARD EXCHANGE RATES AGA NST U.S. DOLLARS NEW YORK Friday figures P< GERMAN MARK SWISS FRANC V D STERLING T DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNT- DISCOUNT- AGAIN ST POUND STERLING LONDON Friday ligurei PREMIUM* SWISS FRANC,V\A GERMAN MARK U.S. DOLLAR DISCOUNT- M D M J S D M I S D

11 INDUSTRIAL STOCK INDICES Roiio teal* 300 SWITZERLAND- 250 GERMANY U.K. 200 U.S JAPAN 250 CANADA Swm Bank Corporation induilnol slock indes J o p o n m de * ol mduiif iol and other 11 o c k t traded on the Tokyo * C h o nge 100

12 H. 13 No.262 II. Latest Figures Plotted in H.13 Chart Series, 1966 (all figures per cent per annum) August 24, Chart 1 Upper Panel (Wednesday, August 17 ) Euro-$ Deposit U.S. certif. of deposit Lower Panel (Friday, August 19 ) Finance co. paper: U.S. Canada Hire-purchase paper, U.K. Chart 2 (Friday, August 19) Chart 5 (Friday, August 19 ) Treasury bills: U.K. U.S Forward pound Net incentive (U.K. 4-) Chart 6 (Friday, August 19 ) Euro-$ deposits: Treasury bills: U.S U.K Call day 6.56 Canada day day day 6.62 Interbank loan rate (German) 6.84 (August 8-15) Hire-purchase paper (August 5) 6.13 Euro-$ deposit (London) 6.56 Local-authority deposit 5.75 Zurich 3-mo. deposit (August 5) (Date: July 15 ) 4,25 Chart 3 Japan composit rate Upper Panel (Period: Augis t 8-15 ) (Date: April 30 ) 7.53 Interbank loan (mid-point) 6.84 Chart 7 Euro-$ deposit (average) 6.21 U.S. Gov't. (Wed., August 17) 4,88 Lower Panel (Date: July 15 ) U.K. War Loan (Thurs., Aug. 1.1) 7.29 Zurich 3-mo. deposit 4.25 German Fed. (Fri., August 12) 8.29 Price of pold Swiss Confed. (Fri., Aug. 12) 4.07 (Friday, August 5 ) Canadian Gov't. (Wed., Aug. 10) 5.88 Chart 4 (Friday, August 19 ) Netherlands Gov't perpetual 3% (Friday, August 12 ) 5.91 Treasury bills: Canada 4.96 U.S Euro-$ bonds (Fri., August 12) 6.79 Spread favor Canada For descriptions and sources of data, Forward Canadian $ see special supplement to H.13, Number 239, March 16, Net incentive (Canada +) Canadian finance paper 6.25