TED spread

British  

/ tɛd /

noun

1. finance the difference in value between three-month futures contracts for Treasury bills and for Eurodollars, used to gauge the willingness of banks to lend money

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Etymology

Origin of TED spread

C20: from _T ( _{reasury bill} ) + ED (symbol for Eurodollars)

Example Sentences

The TED spread, the difference between what lenders and the U.S. government pay to borrow for three months, was 49 basis points, the most since June 2009.

From BusinessWeek • Nov. 21, 2011

Demand for Treasuries increased the so-called TED spread in September as the difference between what lenders and the U.S. government pay to borrow for three months rose.

From BusinessWeek • Sep. 20, 2011

Still, “the rise in the TED spread would suggest there is anxiety building in the financial system,” said Michele Gambera, head of quantitative analysis at UBS Global Asset Management in Chicago.

From New York Times • May 29, 2010

One way to tell is by looking at the so-called TED spread, the difference between the rates that banks charge one another for short-term loans and low-risk Treasury debt.

From New York Times • May 29, 2010

"Choose me!" shouts my ill-fated "TED spread," a bet in May that the unusually narrow spread between Treasury bills and Eurodollars would widen.

From Time Magazine Archive