The Three- and Six-Month Eurodollar LIBOR Rates Fixed Lower Today

The three- and six-month Eurodollar LIBOR rates fixed lower today, while the 12-month rate edged higher and the 1-month rate held steady. The 3-month TED spread contracted.

Image courtesy: The Wall Street Journal Online

Right now, the yield on the 3-month U.S. Treasury Bill is 0.04%. Therefore, the 3-month TED spread is currently 0.21344 percentage point; it was 0.23375 yesterday, 0.23363 last Friday and 4.60875 on October 10, 2008 during the peak of the global credit 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.