DIVISION OF INTERNATIONAL FINANCE BOARD OF «OVEftNORS OF THE H. 13. No. 295 April 19, 1967 CAPITALMARKETDEVELOPMENTSABROAD 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, Chart Chart Chart Chart Chart Zurich/London 4 - Interest Arbitrage: New York/Canada 5 - Interest Arbitrage: New York/London 6 - Short-term Bond Yields 7 - Long-term Bond Yields 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)
NEW YORK, LONDON, MONTREAL: YIELDS FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS DOLLAR DEPOSIT RATES: NEW YORK.LONDON Wednesday figu'es Per cent per EURODOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT EURO-DOLLAR OVER j U.S. CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES (covered): QUOTED IN NEW YORK HIRE PURCHASE CANADIAN FIBAWCt COMPANY U.S. FiBAttCt C9MPANY Mar. Jan. Sept uei tie;. Sept Bee. Mir. Jun. 1965 1967
LONDON: YIELDS FOR US. DO! LA k inv'tsvoxs ON J feumi.t t'utfds EURO-DOLLAR DEPOSIT RATES 180 DAY 30 DAY A v ' i 90 DAY UAH HIRE PURCHASE AND LOCAL A IJ THORN Y DtPOSIl fc A T K S HIRE PURCHASE. EURO-DOLLAR BEPISIT IFFFCENTIAL FAVOR HIRt PURCHASE FAVOR EURODOLLAR EMkQ DOLLAR BEfiSlY v L6CAL ADtMiilTY»EmST DIFFERENTIAL FMV8* LOCAL AUTHORITY I FAtfl* EURODOLLAR 1868 1967
I INTEREST ARBITRAGE: FRANKFURT/LONDON, ZURICH/LONDON FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE (COVERED) INTERBANK LOAN RATE IN TERMS OFDM EURO-DOLLAR DIFFERENTIAL FAVOR FRANKFURT ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLA* RATE (COVERED) IN FAVOR EURODOLLAR TERMS OF SWISS FRANCS EVffl-MUAR SWISS SEMSIT RATE DIFFERENTIAL V - ^ v... 1! FAVOR ZURICH 1 FAVOR E URO DOLLAR i i i i 1 1 1 1 1 1 I 1 1 1 i i 1 1 I I 1
INTEREST ARBITRAGE, UNITED STATES/CANADA Friday figures 3-MONTH TREASURY BILL kales CAN. FIN. CO. PAPER CANADA \ r UNITED STATES BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR V\ SPREAD IN FAVOR OF CANADA FORWARD RATE L_L 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES! FAVOR CANADA!! PRIME FINANCE PAPER TMAttWY MILS FAVOR CANADA ~ J $ 1 * 0 M $ J S D 1914 1365 ItftS 1967
INTEREST ARBITRAGE, NEW YORK/LONDON 3-MONTH TREASURY BILL RATES U.K. LOCAL AUTHORITY DEPOSITS LONDON NEW YORK /V RATE DIFFERENTIAL AND 3 - MO NTH FORWARD STERLING SPREAD l» FMfVit OF LONDON FORWARD RATE DISCOUNT 0 RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVER (NET INCENTIVE) I IN FAVOR OF NEW YORK 1964 1965 1966 1967
1 SHORT-TERM INTEREST RATES * EURO-DOLLAR - LONDON + U.K. U.S. SWITZERLAND JAPAN GERMANY CANADA U.S. 196& 1964 1965 1966 1967 * 3 month treasury bill rotes for oil countries except Jopon (Averoge rd'e on bank foam and discounts) Switzerland (3 month deposit rate! and Germany (interbank Loan Rale*, ~j" 3-month rate for U 5 dollar deposits in London Digitized for FRASER
LONG-TERM BOND YIELDS NETHERLANDS CANADA lor Germany
0\ SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR ~T SWI SS FRANC / "V GERI MAN MARK r / ^ VXI i A \ ) _ / / U.K. 1 STERLING " 1 /! FRENCH FRANC- BELGIAN FRANC; DUTCH (WILDER DOLLAR ITALIAN LIRA JAPANESE YEN M J s D J S D M 1965 1966 1967
3-MONTH FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS-NEW YORK Fridoy figurei PREMIUM SWISS FRANC V POUND STERLING T 2 PREMIUM DUTCH GUILDER FRENCH FRANC ] CANADIAN DOLLAR AG A I N ST POUND STERLING LONDON frtdoy ligurei Per cent per annum SWISS FRANC PREMIUM GERMAN MARK U.S. DOLLAR DISCOUNT- DISCOUNT- DISCOUNT- M S 0 M J S D M J S D 1964 1965 1966
Vv INDUSTRIAL STOCK INDICES W5B 100 360 320 280 SWITZERLAND 240 200 GERMANY 160 120 360 320 280 JAPAN 240 CANADA 200 160 1964 1965 1111 1967 120
\V H. 13 April 19, No. 295 Latest Figures Plotted in H.13 Chart Series, 1967 (all figures per cent per annum) Chart 1 Chart 5 Upper Panel (Wednesday, April 12 ) (Friday, April 14) Euro-$ deposit 4.88 Treasury bills: U.K. 5.30 U.S. 3.86 U.S. certif. of deposit 4.36 Spread favor U.K. +1.44 Lower Panel (Friday, April ] 14 ) Forward pound -0.89 Finance co. paper: U.S. 4. 38 Canada 4.96 Net incentive (U;K. +) 40.55 Hire-purchase paper, U.K. 5.17 Chart 6 Chart 2 (Friday, April 14) (Friday, April 14) Treasury bills: U.S. 3.86 Euro-$ deposits: U.K. 5.30 Canada 3.86 Call 6.38 90-day 4.88 30-day 4.62 180-day 4.88 Interbank loan rate (German) 4.45 (April 8-15) Hire-purchase paper 5.42 Euro-$ deposit (London) 4.88 (April 7) Local-authority deposit 5.27 Zurich 3-month deposit (April 7) (Date: March 15 ) 4.50 Chart 3 Japan composit rate Upper Panel (Period: April 8-15 ) (Date: January 31 ) 7.35 Interbank loan (mid-point) 4.45 Chart 7 uro-$ deposit (average) 4.90 U.S. Gov't. (Wed., April 12 ) 4.52 Lower Panel (Date: March 15 ) U.K. War Loan (Thurs.,April 13) 6.42 Zurich 3-month deposit 6.50 German Fed. (Fri., April 14 ) 6.74 Price of gold 35.169 Swiss Confed. (Fri., April 7 ) 4.31 (Friday, April 7 ) Canadian Gov't. (Wed..April 12) 5.51 Chart 4 (Friday, April 14 ) Netherlands Gov't, perpetual 3% (Friday, April 7 ) 5.46 Treasury bills: Canada 3.86 U.S. 3.86 Euro-$ bonds (Fri., April 14 ) 6.16 Spread favor Canada 0.00 For descriptions and sources of data, see Forward Canadian $ -0. 10 special supplement to H.13, Number 239, March 16, 1966. Net incentive (Canada 4-) -0.10 Canadian finance paper 4,86