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 spread between interest rates on super-safe Treasury bills and slightly less safe offshore three-month interbank dollar loans, known as the “TED spread,” a gauge of financial stress, has jumped.

From The Wall Street Journal

Like anything that measures the difference between two gauges, the TED spread tells two stories.

From The Wall Street Journal

So the TED spread’s surge is a mechanical result of its two components moving in different directions for reasons mostly unrelated to the creditworthiness of banks.

From The Wall Street Journal

Treasury bill yields are down, Libor is up, so the TED spread is up too.

From The Wall Street Journal

Yet even if factors other than financial stress are driving the move in the TED spread, there is an inkling of unease.

From The Wall Street Journal