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TED spread - Sweden

by elBulli, 5306 days ago
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The TED spread is the difference between the interest rates on interbank loans and short-term government debt ("T-bills"). TED is an acronym formed from T-Bill and ED, the ticker symbol for the Eurodollar futures contract.

Initially, the TED spread was the difference between the interest rates for three-month U.S. Treasuries contracts and the three-month Eurodollars contract as represented by the London Interbank Offered Rate (LIBOR).

The Swedish TED spread is caculated as the difference between the Swedish 3-Month STIBOR - Historical data (Stockholm Interbank Offered Rate) and the Swedish 3-Month Treasury Bill - Historical data..

The size of the spread is usually denominated in basis points (bps). 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 historically has often remained within the range of 10 and 50 bps (0.1% and 0.5%), until 2007. A rising TED spread often presages a downturn in the stock market, as it indicates that liquidity is being withdrawn.




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Type: Trading Indicator

Object ID: 543


Country:
Sweden

Market: Bonds Market

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All

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