The Three-, Six- and Twelve-Month Eurodollar LIBOR Rates Eased On the Week

The three-, six- and twelve-month Eurodollar LIBOR rates eased on the week, while the 1-month rate edged higher. On the day, the 6- and 12-month rates waned, while the 1- and 3-month rates crept higher. The 3-month TED spread contracted on the week but expanded on the day.


Image courtesy: Wall Street Journal Online

Right now, the yield on the 3-month U.S. Treasury Bill is 0.145%. Therefore, the 3-month TED spread is currently 0.14656 percentage point; it was 0.14141 yesterday, 0.15719 last Friday and 4.60875 on October 10, 2008 at 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.

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