The One-, Three-, Six- and Twelve-Month Eurodollar LIBOR Yields All Sank Lower On The Day and The Week
The one-, three-, six- and twelve-month Eurodollar LIBOR yields all sank lower on the day and the week. The TED spread followed suit and narrowed on both the day and the week.
Image courtesy The Wall Street Journal Online
Right now, the yield on the 3-month U.S. Treasury Bill is 0.155%. Therefore, the TED spread is currently 0.67063 percentage point; it was 0.69938 yesterday, 0.7725 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 large, international banks are lending money to each other with confidence.
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 3-month U.S. Treasury Bill is 0.155%. Therefore, the TED spread is currently 0.67063 percentage point; it was 0.69938 yesterday, 0.7725 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 large, international banks are lending money to each other with confidence.
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 | Friday, May 15, 2009
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