The One-, Three-, Six- and Twelve-Month Eurodollar LIBOR Rates All Moved Lower On The Week

The one-, three-, six- and twelve-month Eurodollar LIBOR yields all moved lower on the week. On the day, the 1-, 3- and 6-month rates declined, while the 12-month rate advanced. The TED spread contracted on both the day and the week.

Image courtesy The Wall Street Journal Online


Right now, the yield on the 91-day U.S. Treasury Bill is 0.20%. Therefore, the TED spread is currently 0.96094 percentage point; it was 0.97594 yesterday, 1.095 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. India.

Click here for historical LIBOR values.

Click here for a chart comparing LIBOR to the Prime Rate and the target fed funds rate.