CAPITAL MARKET DEVELOPMENTS ABROAD. I. Ten"Charts on Financial Markets Abroad. II. Latest Figures Plotted in H.13 Chart Series, 1967

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1 PEDEHALHESEItVESYSTEM H. 13 September 20, No.317 CAPITAL MARKET DEVELOPMENTS ABROAD I. Ten Charts on Financial Markets Abroad II. Latest Figures Plotted in H.13 Chart Series, 1967 I. Ten"Charts on Financial Markets Abroad Chart 1 - New York, London, Montreal: Yields for U.S. Dollar Investors on 3-month Funds Chart 2 - London: Yields for U.S. Dollar Investors on 3-month Funds Chart 3 - Interest Arbitrage: Frankfurt/London, Zurich/London Chart 4 - Interest Arbitrage: New York/Canada Chart 5 - Interest Arbitrage: New York/London Chart 6 - Short-term Interest Rates Chart 7 - Long-term Bond Yields Chart 8 - Spot Exchange Rates Major Currencies Against U.S. Dollar Chart 9-3-month Forward Exchange Rates Chart 10 - Industrial Stock Indices Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months)

2 NEW YORK, LONDON, MONTREAL: YIELDS FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS DOLLAR DEPOSIT RATES: NEW YORK-LONDON EURO DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURODOLLAR OVER U.S. CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK U.K. HIRE PURCHASE n CANADIAN FINANCE COMPANY. un. Sept Mar Jun.

3 LONDON: YIELDS FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS EURO-DOLLAR DEPOSIT RATES 30 DAY 180 DAY 90 DAY 4 CALL PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered) HIRE PURCHASE EURO-DOLLAR DEPOSIT FAVOR HIRE PURCHASE EURO-DOLLAR DEPOSIT LOCAL AUTHORITY DEPOSIT FAVOR LOCAL AUTHORITY

4 INTEREST ARBITRAGE: FRANKFURT/LONDON, ZURICH/LONDON FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE (COVERED) INTERBANK LOAN RATE IN TERMS OF DM DIFFERENTIAL FAVOR FRANKFURT ZURICH DEPOSIT RATE VS. LONDON EURO- DOLLAR RATE (COVERED) FAVOR EURODOLLAR IN TERMS OF SWISS FRANCS EURO-DOLLAR SWISS DEPOSIT RATE DIFFERENTIAL FAVOR ZURICH FAVOR EURO-DOLLAR PRICE OF GOLD IN LONDON

5 z INTEREST ARBITRAGE, UNITED STATES/CANADA 3-MONTH TREASURY BILL RATES CAN.^FIN^CO. PAPER^-! : i i : CANADA / UNITED STATES A \l : BILL RATE DIFFERENTIAL AND h O R W A R D CAN AD 1 A ;: L. u L L A R PREMIUM SPREAD IN FAVOR Of CANADA! / v V ^ A s FORWARD RATE 1 1 V! ^ -j DISCOUNT ' ' i! : 1 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) ; FAVOR CANADA l PRIME FINANCE PAPER l\k.. FAVOR U.S. 1 A TREASURY BILLS A FAVOR CANADA 1964 \AV0R U.S., : V! : 1 M J S 0 M J

6 INTEREST ARBITRAGE, NEW YORK/LONDON 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING SPREAD IN FAVOR OF LONDON FORWARD RATE DISCOUNT RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN FAVOR OF LONDON IN FAVOR OF NEW YORK I

7 r SHORT-TERM INTEREST RATES* n 8 EURO-DOLLAR - LONDON "t SWITZERLAND 2 9 JAPAN GERMANY! 6 CANADA U.S. _ : j

8 LONG-TERM BOND YIELDS Wceklv tigv'et Percent NETHERLANDS CANADA SWITZERLAND GERMANY EURO DOLLAR BONDS

9 SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC GERMAN MARK U.K STERLING FRENCH FRANC BELGIAN FRANC, DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA JAPANESE YEN S

10 10 3-MONTH FORWAID 1XCHAN01 KATIS AGAINST U.S. DOLLARS NEW YORK SWISS FRANC / GERMAN MARK POUND STERLING DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR AGAINST POUND STERLING LONDON day figures SWISS FRANC GERMAN MARK U.S. DOLLAR V DISCOUNT

11 W ' INDUSTRIAL STOCK INDICES R O»ccit C 280 SWITZERLAND GERMAN JAPAN CANADA 160 J 120

12 H. 13 No.317 (all figures per cent per annum) September 20, 1967 I : - Chart 1 Chart 5 Upper Panel (Wednesday. Sent. 13 ) (Friday, Sept. 15) Euro-$ deposit 5.12 Treasury bills: U.K U.S U.S. certif. of deposit Spread favor U.K Lower Panel (Friday, Sept. 15 ) Forward pound -,.80 Finance co. paper: U.S Canada 4.29 Net incentive (U.K. +) -,.02 Hire-purchase paper, U.K Chart 6 Chart 2 (Friday, Sept. 15 ) (Friday, Sept. 15) Treasury bills: U.S Euro-$ deposits: U.K Canada Call day day day 5.62 Interbank loan rate (German) Hire-purchase paper 4.80* Euro-$ deposit (London) 5, 12 (Sept. 8) Local-authority deposit 4.70** Zurich 3-month deposit (Sept. 8) (Date: Aug. 15 ) Chart 3 Japan composite rate Upper Panel (Period: Sept. 15 ) (Date: June 30 ) Interbank loan (mid-point) 3.38 Euro-$ deposit (average) 3.53 Lower Panel (Date: Aug. 15 Chart 7 U.S. Gov't. (Wed., Sept. 13 ) Zurich 3-month deposit 3,.25 German Fed. (Fri., Sept. 15) 6.,65 Price of gold 35.,185 (Friday, Sept. 8 ) Chart 4 (Friday, Sept. 15) Treasury bills: Canada U.S Spread favor Canada 0 Forward Canadian $ Net incentive (Canada +) Canadian finance paper Swiss Confed. (Fri., Netherlands Gov't, perpetual 3% (Friday, Sept. 8 ) Sept. 8 ) 4.,52., Sept. 13) Euro- $ bonds (Fri., Sept. 15 ) 6.42 For descriptions and sources of data, see special supplement to H.13, Number 239, March 16, June 9 - v 5,42r **5.17r Aug. 4 *5.15r **4.99r M kul II MX r 5.06r r 4.75r July r 5.26r Sept r 4.73r r 5.16r r 4.90r r 4.96r