The One-, Three-, Six- and Twelve-Month Eurodollar LIBOR Rates All Declined On the Day, But Rose on the Week

The one-, three-, six- and twelve-month Eurodollar LIBOR rates all waned on the day, but rose on the week. The TED spread widened.


Image courtesy The Wall Street Journal.

Right now, the yield on the 3-month U.S. Treasury Bill is 0.265%. Therefore, the TED spread is currently 0.98375 percentage point; it was 0.95063 yesterday, 0.9475 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 functioning normally.

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. Kenya.

Click here for historical LIBOR values.

Click here for a chart that compares American benchmark rates to LIBOR.