No LIBOR News Today (Boxing Day Holiday)

London markets were closed for the Boxing Day holiday today, so no LIBOR news to report. The 3-month TED spread narrowed.

Image courtesy: The Wall Street Journal Online

Right now, the yield on the 3-month U.S. Treasury Bill is 0.1%. Therefore, the 3-month TED spread is currently 0.15063 percentage point; it was 0.21063 last Friday and 4.60875 on October 10, 2008 during the peak of the global banking crisis.

For the 3-month TED spread, a figure between zero and 0.50 percentage point (0.50 percentage point = 50 basis points) 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.

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.