#finance #ted-spread
For example, if the T-bill rate is 5.10% and ED trades at 5.50%, the TED spread is 40 bps.
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TED spread - Wikipedia, the free encyclopediage dropped T-bill futures after the 1987 crash,[1] the TED spread is now calculated as the difference between the three-month LIBOR and the three-month T-bill interest rate.
The size of the spread is usually denominated in basis points (bps). <span>For example, if the T-bill rate is 5.10% and ED trades at 5.50%, the TED spread is 40 bps. The TED spread fluctuates over time but generally has remained within the range of 10 and 50 bps (0.1% and 0.5%) except in times of financial crisis. A rising TED spread often presages a Summary
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