The One-, Three-, Six- and Twelve-Month Eurodollar LIBOR Yields All Declined Today
The one-, three-, six- and twelve-month Eurodollar LIBOR rates all declined today. The TED spread contracted.
The 3-month Eurodollar LIBOR rate dropped below the 1% mark for the first time since the British Bankers' Association began publishing LIBOR rates back in the mid-1980's.
The 3-month Eurodollar LIBOR rate dropped below the 1% mark for the first time since the British Bankers' Association began publishing LIBOR rates back in the mid-1980's.
Image courtesy The Wall Street Journal Online
Right now, the yield on the 91-day U.S. Treasury Bill is 0.175%. Therefore, the TED spread is currently 0.81125 percentage point; it was 0.83188 yesterday, 0.87125 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 capital is flowing through international credit markets 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.
Click here for historical LIBOR values.
Click here for a chart comparing LIBOR to the Prime Rate and the target fed funds rate.
Click here to read about how U.S. Dollar LIBOR fixing works.
Right now, the yield on the 91-day U.S. Treasury Bill is 0.175%. Therefore, the TED spread is currently 0.81125 percentage point; it was 0.83188 yesterday, 0.87125 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 capital is flowing through international credit markets 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.
Click here for historical LIBOR values.
Click here for a chart comparing LIBOR to the Prime Rate and the target fed funds rate.
Click here to read about how U.S. Dollar LIBOR fixing works.
Labels: libor, TED_spread
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posted by Steve Brown | Tuesday, May 05, 2009
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