DIVISION OF INTERNATIONAL FINANCE BOARD OF ecveknohs H. 13 December 21, 1966 No. 279, I CAPITAL MARKET DEVELOPMENTS ABROAD 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 Dollar Investors on 3-month Funds London: Yields for 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 Dollar 3-month Forward Exchange Rates Industrial Stock Indices Europe and British Commonwealth Section. OFFICIAL USE ONLY (Decontrolled after six months)
NEW YORK, LONDON, MONTREAL: YIELDS FOR DOLLAR INVESTORS ON 3-MONTH FUNDS DOLLAR DEPOSIT RATES: NEW YORK-LONDON Wedneidoy figures EURO-DOLLAR DEPOSIT CERTIFICATE OF DEPOSIT EURODOLLAR OVER I I I CERTIFICATE OF DEPOSIT,. FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK U.K. HIRE PURCHASE
LONDON; YIELDS FOR DOLLAR INVESTORS ON 3-MONTH FUNDS EURO-DOLLAR DEPOSIT RATES 180 DAY 90 DAY CALL 30 DAY KURE PURCHASE AND LOCAL AUTHORITY DEPOSIT RATES (covered) EURO-DOLLAR DEPOSIT HIRE PURCHASE DIFFERENTIAL 1 FAVOR EURO-DOLLAR LOCAL AUTHORITY DEPOSIT EURO-DOLLAR DEPOSIT DIFFERENTIAL FAVOR LOCAL AUTHORITY 1964 1965 L_.i- 1966
[INTEREST ARBITRAGE; FRANKFURT/LONDON, ZURICH/LONDON) FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE (COVERED) Per cent par efine* IN TER MS Optfi- INTERBANK LOAN RATE EURO-DOLLAR 1 r DIFFERENTIAL I FAVOR EURODOLLAR ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE (COVERED) 'NCS EURO-DOLLAR SWISS DEPOSIT RATE 1 r DIFFERENTIAL FAVOR ZURICH FAVOR EURO-DOLLAR 2X PRICE OF GOLD IN LONDON 35.2 35.0 1964 1965 1966
INTEREST ARBITRAGE, UNITED STATES/CANADA Friday figures pi 3-MONTH TREASURY BILL RATES CAN. FIN. CO. jpaper CANADA UNITED STATES I 1 1 1 I 1 I I I 1 1 [ BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR SPREAD FORWARD RATE 1 1 1 i i i i i i 1 i r~ 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CAR PRIME FINANCE PAPER TREASURY BILLS FAVOR FAVOR CANADA w I- 0 Lt_L J_L j s 1963 I I I I I I I I I I I I I I I I I 1964 1965 1966
INTEREST ARBITRAGE, NEW YORK/LONDON Friday (igurei 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING I I I SPREAD IN FAVOR OF LONDON PREMIUM DISCOUNT FORWARD RATE RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) IN FAVOR OF LONDON IN FAVOR OF NEW YORK 1963 1964 1965 1966
SHORT-TERM INTEREST RATES * EURO-DOLLAR - LONDON f S v J SWITZERLAND JAPAN CANADA GERMANY 1962 1963 1964 1965 1966 Swilzerlond fj monih (inpnui futv) unri G» r m <i n > ( I n t»* i h n n k I o <i n Kuie)
LONG-TERM BOND YIELDS 9 GERMANY 8 U.K. 7 V 'C7 6 EURO-DOLLAR BONDS 5 4 NETHERLANDS -'TvL-Z CANADA 1962 1963 1964 1965 1966
SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST DOLLAR Above par SWISS FRANC / V f v r / - GERMAN MARK U.K. STERLING FRENCH FRANC r BELGIAN FRANC DUTCH GUILDER ITALIAN LIRA CANADIAN DOLLAR 1 JAPANESE YEN M J S D M S D M J 1964 1965 1966 S D
3-MONTH FORWARD EXCHANGE RATES AGAINST DOLLARS NEW YORK Friday (igi GERMAN MARK SWISS FRANC POUND STERLING DUTCH GUILDER PREMIUM CANADIAN DOLLAR AGAINST POUND STERLING LONDON Friday figures SWISS FRANC GERMAN MARK A 1 i - ; / v r m J HJ X V V\i v V U DISCOUNT- DISCOUNT- I 1 1 1 1 J s 0 1966
INDUSTRIAL STOCK INDICES Ratio itole 300 SWITZERLAND 250 GERMANY U.K. 200 150 100 300 250 JAPAN Vv 200 CANADA x w / 150 100 1963 1964 1965 1966 * * Japan: inde* of 225 industrial and other ilocki traded on the Tokyo exchange
H.13 NO. 2 7 Latest Fleure# Plotted in H.13 Chart Series. 1966 (all flguree par cant per annua) December 21, 1966 \V Chart 1 Upper Panel (Wedneaday, Dec. 14 ) Chart 3 (Friday, Dec, 16) Euro-$ Depoalt eertlf. of depoalt Lower Panel (Friday, _ Finance co. paper: Canada Hlre-purchaae paper, U.K. 6.62 6.87 97 Treasury bills: U.K. Spread favor U.K. Forward pound Net Incentive (U.K. +) 6.47 4. WW +1-59 -0.59 +1.00 Chart 2 (Friday, -. Chart 6 (Friday. Qec. 16) Buro-$ deposits: Call 6.:2 90-day 7-day 6 23 180-day 30-day 6 A8 Hire-purchase pspee- (Dec. 9) Local-authority deposit (Dec. 9) Chart 3 Upper Panel (Period: Dec Treasury bills: U.K. Canada Interbank loan rate (German) (Dec.,-7) Euro-* depoalt (London) Zurich 3-mo. deposit (Date: "o/. :5 ) Japan eemposlt rate (Date: 30 J 4.88 6.47 4.94 7 c 12 6 75 4 25 7.42 Interbank loan (mid-point) Buro-$ depoalt (average) Gov't. (Wed., 3e: ii> Lower Panel (Date: -13 U.K. War Loan fthurs.. 15 ) Zurich 3-mo. depoalt Price of nold (Friday, Dec, 9 ) Chart A (Friday, Pec- 16 ) Treasury bills: Canada Spread favor Canada Forward Canadian $ Net Incentive (Canada +) Canadian finance paper 4.94 +0 06 +0/33 +0o 39 German Fed. (Fri., ^ - 1 ) Swiss Confed. (Fri., Dec, 9) Canadian Gov't. (Wed., Netherlands Gov't perpetual 3% (Friday, Qe..: 2 ) Euro-* bonds (Fri., _ e J±) For deacrlptlona and sources of data, see special supplement to H.13, Number 239,March 16, 1966.