I guess my concerns about the climbing TED spread and 3Mth LIBOR – OIS spread have been misplaced, the TED spread at least falling to ‘no stress’ territory quite rapidly:
LOL … Nothing to see here, move along.
(Hi to all the folks at Bloomberg, I think the error in your TED spread measure is you have put the current value into the “Change” cell of whatever spreadsheet you are using, hence it looks like a fall of 100%).
All right … I’ll stop mucking around with obvious errors, the 3 Mth LIBOR – OIS spread keeps on climbing:
Is this trying to tell us something? I think it is, otherwise I wouldn’t be highlighting it. Is it fear of ‘contagion’ in the Middle East from the Tunisian and Egyptian events? Unrest does seem to be spreading, according to the media. The USD is up, too. The ‘risk’ currency du jour (the AUD) is down (a bit).
And yet oil is down (again, a bit). So maybe it ain’t the Middle East. Like I said before, I don’t know. But the persistence of the climb of the two spreads is a little eerie, even though the spreads are actually off a little today.
Here is a correct chart for the TED spread. This chart from Stockcharts, code is $TED for those interested: