\ DIVISION OF INTERNATIONAL FINANCE BOARD OF OOV RK'3RI N H ; % 3 1 4 ' 1 9 6 7 ' CAPITAL MARKET DEVELOPMENTS ABROAD - l TeW Charts on Financial Markets Abroad II. Latest Figures Plotted in H.13 Chart Series, 1967 I. Ten Charts on Financial Markets Abroad Chart 1 - Nevv 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 U - 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 5-3-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 EURO-DOLLAR DEPOSIT U.S. CERTIFICATE OF DEPOSIT I EURODOLLAR OVER I U.S. CERTIFICATE OF DEPOSIT FINANCE CO. PAPER RATES (covered) : QUOTED IN NEW YORK U.K. HIRE PURCHASE CANADIAN COMPANY FINANCE U.S. FINANCE COMPANY Mar. Jun. Sept. Die. Mir. Sept. Dec. Mar. Jun. 1965 1966 1967
LONDON: Y I E L D S FOR U.S. DOLLAR INVESTORS ON 3-MONTH FUNDS EURO-DOLLAR DEPOSIT RATES 30 DAY 180 DAY 90 DAY CALL IRE. PURCHASE AND LOCAL AUTHORITY DEPOSIT PATES (covered) HIRE PURCHASE E U R O D O L L A R DEPOSIT DIFFERENTIAL 5 FAVOR HIRE P U R C H A S E FAVOR E U R O D O L L A R EURO -u DLL An DEPOSIT LOCAL AUTHORITY D E P O S I T DIFFERENCIAL FAVOR LOCAL AUTHORITY AVOR E U R O D O L L A R
4 I INTEREST ARBITRAGE: FRANKFURT/LONDON, ZURICH/LONDON FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO-DOLLAR RATE (COVERED) INTERBANK LOAN RATE IN TERMS OF DM 8 EURO-DOLLAR 6 4 DIFFERENTIAL FAVOR FRANKFURT 2 0 ;! : : ;!! ' 1 1 ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE (COVERED) IN TERMS OF SWISS FRANCS 8 EURODOLLAR 6 SWISS DEPOSIT RATE 4 DIFFERENTIAL FAVOR ZURICH 0 2 PRICE OF GOLD IN LONDON 35.3 1965 1861 1967 35.0
< INTEREST ARBITRAGE, UNITED STATES/CANADA 3-MONTH TREASURY BILL RATES CAN. FIN. CO. PAPER CANADA UNITED STATES : DILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR SPREAD IN FAVOR OF CANADA V Al /V x iv" v FORWARD RATE DISCOUNT 3-MONTH COVERED RATE DIFFERENTIALS (NET INCENTIVES) FAVOR CANADA PRIME FINANCE PAPER TREASURY BILLS FAVOR CANADA N J S D M J S 0 M J S D M J S D 1964 1965 HIS 1967
INTEREST ARBITRAGE, NEW YORK/LONDON 3-MONTH TREASURY BILL RATES ; U.K. LOCAL AUTHORITY DEPOSITS! LONDON NEW YORK /V RATE DIFFERENTIAL AND 3-MONTH FORWARD STERLING SPREAD IN FAVOR OF LONDON FORWARD RATE j DISCOUNT RATE DIFFERENTIAL WITH FORWARD EXCHANGE COVE* (NET INCENTIVE)! IN FAVOR OF LONDON IN FAVOR OF NEW YORK 1964 1965 1966 1967
vl SHORT-TERM INTEREST RATES * EURO-DOLLAR - LONDON + SWITZERLAND :. 2 JAPAN GERMANY i i - 6 CANADA U.S. 1963 1964 1965 1966 1967
LONG-TERM BOND YIELDS NETHERLANDS CANADA SWITZERLAND GERMANY EURODOLLAR BONDS 1963 1964 1965 1966 1967
SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U.S. DOLLAR SWISS FRANC I GERMAN MARK U.K. STERLING FRENCH BELGIAN FRANC FRANC DUTCH GUILDER CANADIAN DOLLAR ITALIAN LIRA JAPANESE YEN 1965 1966 1967
3-MONTH FORWARD EXCHANGE RATES AGAINST U.S. DOLLARS NEW YORK SWISS FRANC y GERMAN MARK ' x 7 POUND STERLING DISCOUNT DUTCH GUILDER FRENCH FRANC CANADIAN DOLLAR DISCOUNT AGAINST POUND STERLING LONDON SWISS FRANC GERMAN MARK U.S. DOLLAR 1965 1966 1967
INDUSTRIAL STOCK INDICES 320 280 SWITZERLAND 240 200 GERMANY 160 J 120 360 320 280 JAPAN 240 CANADA 200 160 1964 1965 1966 1967 J 120
H. 13 June 14, No. 303 11. Latest Figure; > Plotted in H. 13 Chart Series, 1967 (all figures per cent per annum) Chart 1 Chart 5 Upper Panel (Wednesday, June 7 ) (Friday, June 9 ) Euro-$ deposit 5. 75 Treasury bills: U.K. 5.12 U.S. 3.40 U.S. certif. of deposit 4.48 Spread favor U.K. +1.72 Lower Panel (Friday, June 9 ) Forward pound -0.45 Finance co. paper: U.S. 4.38 Canada 4. 77 Net incentive (U.K. +) +1.27 Hire-purchase paper, U.K. Chart 6 Chart 2 (Friday, June 9 ) (Friday, June 9 ) Treasury bills: U.S. 3.40 Euro-$ deposits: U.K. 5.12 Canada 4.23 Call 4.88 90-day 5.25 30-day 5.00 180-day 5.44 Interbank loan rate (German) 3.79 Hire-purchase paper 5.00 Euro-$ deposit (London) 5.25 (June 2) Local-authority deposit 4.81 Zurich 3-month deposit (June 2) (Date: May 15 ) 4.25 Chart 3 Japan composite rate Upper Panel (Period: June 1-7 ) (Date: March 31 ) 7.32 Interbank loan (mid-point) 3.79 Chart 7 Euro-$ deposit (average) 4.49 U.S. Gov't. (Wed., June 7 ) 4.79 Lower Panel (Date: May 15 ) U.K. War Loan (Thurs., June 8 ) 6.69 Zurich 3-month deposit 4.25 German Fed. (Fri., May 26 ) 6.72 4-1/2%,June 2 6.74 Price of gold 35.188 Swiss Confed./(Fri., June 2 ) 4. 75 (Friday, June 2 ) Canadian Gov't. (Wed., June 7 ) 5.79 Chart 4 (Friday, June 9 ) Netherlands Gov't, perpetual 37. (Friday, June 2 ) 5.47 Treasury bills: Canada 4.23 U.S. 3.40 Euro-$ bonds (Fri., June 9 ) 6.29 Spread favor Canada 40.83 For descriptions and sources of data, see Forward Canadian $ -0.22 special supplement to H.13, Number 239, March 16, 1966. Net incentive (Canada +) +0. 61 Canadian finance paper 5.25 v>-