Regular readers will know that I look at the TED spread as somewhat of a warning bell. When it is rising, especially when rising rapidly, at the very least I tend to respect that as an alert to take special care with longs.
This is a useful article discussing recent activity in short-dated Treasury instruments, and, by implication, the TED spread. Worth a read of you are interested.
New Fee Shakes Up a Lending Market
(Subscription may be required to access this WSJ page. I don’t have another source, sorry. A digg around on Google can be helpful in accessing WSJ articles.).