The One-,Three-, Six- and Twelve-Month Eurodollar LIBOR Rates All Eased Today
The one-, three-, six- and twelve-month Eurodollar LIBOR rates all eased today; the TED spread narrowed.
Image courtesy The Wall Street Journal.
Earlier today, in the first monetary policy meeting of the year, the Federal Open Market Committee (FOMC) of the Federal Reserve opted to make no changes to short-term interest rates.
Right now, the yield on the 3-month U.S. Treasury Bill is 0.18%. Therefore, the TED spread is currently 0.99438 percentage point; it was 1.05438 yesterday, 1.07938 last Friday and 4.34 on October 15, 2008. For the TED spread, a figure between zero and 50 basis points (50 basis points = 0.50 percentage point) is a strong indication that the international banking system is normal and healthy.
A Eurodollar is a U.S. dollar deposited in any bank outside the United States, and therefore not subject to regulation by the U.S. Federal Reserve. U.S. dollars deposited in a London bank are Eurodollars, as are U.S. dollars deposited in a bank in e.g. Chad.
Click here for historical LIBOR values.
Click here for a chart that compares American benchmark rates to LIBOR.
Image courtesy The Wall Street Journal.
Earlier today, in the first monetary policy meeting of the year, the Federal Open Market Committee (FOMC) of the Federal Reserve opted to make no changes to short-term interest rates.
Right now, the yield on the 3-month U.S. Treasury Bill is 0.18%. Therefore, the TED spread is currently 0.99438 percentage point; it was 1.05438 yesterday, 1.07938 last Friday and 4.34 on October 15, 2008. For the TED spread, a figure between zero and 50 basis points (50 basis points = 0.50 percentage point) is a strong indication that the international banking system is normal and healthy.
A Eurodollar is a U.S. dollar deposited in any bank outside the United States, and therefore not subject to regulation by the U.S. Federal Reserve. U.S. dollars deposited in a London bank are Eurodollars, as are U.S. dollars deposited in a bank in e.g. Chad.
Click here for historical LIBOR values.
Click here for a chart that compares American benchmark rates to LIBOR.
Labels: libor, TED_spread
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posted by Steve Brown | Wednesday, January 28, 2009
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