TED Spread at 2.00!!!!

Quote from MrDODGE:

Not a good sign people. For those who do not know the Ted Spread is an indictor of credit risk.

http://www.bloomberg.com/apps/quote?ticker=.TEDSP:IND

The market crashed in '87 when this exact number was around 2.8.
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"The price difference between three-month futures contracts for U.S. Treasuries and three-month contracts for Eurodollars having identical expiration months. "

"When the euro was launched in 1999, replacing the Mark and other European
currencies......"

Just double checking the dates involved. Perhaps the credit spreads to the Mark or something in 1987 (can't remember for sure).

Don
 
thumb_480_ted_spread.png


The spike at the end occurred in August.
 
Quote from MrDODGE:
The market crashed in '87 when this exact number was around 2.8.
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The market crashed "first", then short term bonds rallied driving down yields if I am not mistaken. I think you might imply the wrong causality.
 
Quote from makloda:

The market crashed first, then short term bonds rallied driving down yields if I am not mistaken. I think you imply the wrong causality.
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The article I was reading made it sound like it happened the other way around.
 
There is a squeeze in T-Bills this morning. All the money-market funds are looking for nothing but the best quality.

This means nothing with regard to the share markets
 
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