Thursday, May 21, 2009

Basic Borrowing Costs (TED) - down "Another fear gauge returns to normal"
TED spread (wiki it) slides to summer 2007 levels

The TED spread (quote from bloomberg), one of the most popular barometers for the credit crunch among money managers, has fallen to July 2007 levels, a sign that one of the underlying triggers for the bear market has dissipated.

The gap between the 3-month Treasury bill rate and 3-month Libor fell to 48 basis points Thursday, down from more than 450 basis points at the peak of credit panic in October and near its long-term average of about 50 basis points. One basis point is one one-hundredth of a percentage point. read more...

Associated Press reports "Economic indicators up more than expected in April"

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