Lecture 12Domestic & International Money Markets

What I want you to learn

Domestic & International Money Markets Matter, especially in illiquid times.

Domestic

T-Bills

Public IssueTender IssueAuction Issue

Direct Placement+ Tranches

Commercial Paper

Interbanks

Acceptances, Repurchases

CDs

Also:

International

Eurodollars/Euromarket

Bonds

What is a bond?

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Eurozone Bond Spreads over Germany (bps)

Exchange RatesReal Effective Exchange

Rate

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56:99

;9:99

;6:99

49:99

46:99

399:99

396:99

339:99

336:99

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<"=754

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<"=7;6

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<"=743

<"=748

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<"=746

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<"=744

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1$2766

B(C766

A$-799

1$2799

B(C799

A$-795

1$2795

B(C795

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1$2798

B(C798

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1$279<

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B(C79=

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B(C79@

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1$279;

B(C79;

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Dollar/Euro Ex. Rate (monthly)

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>1'689

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Sterling/Euro Ex. Rate

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