http://www.bloomberg.com/apps/cbuilder?ticker1=.TEDSP%3AIND really high . . . 3.47655 at 9:28am
batton down the hatches!
Can someone explain, in simple English, what this means? I believe it’s the Treasury - Eurodollar spread, but I’m not firm on the implications.
It’s a measure of short-term risk of some kind usually credit and/or political risk. People would much rather have their dollars in completely, utterly secure T-bills than AA banks. It’s a remarkable spread right now.
That spike in September is just amazing. 1% to 3.5% in a matter of days. Unreal.
It means sell treasuries.
it makes me want to cry. credit markets are froooozen. banks afraid to lend to banks either because they don’t trust other banks’ ability to repay, or they think that they will need the liquidity in the short term. i love the cnbc talking heads: ‘this is the bottom, how much worse could it get?’ speaking of the bear market. arg.