TED spread

/ 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

Word History and Origins

Origin of TED spread¹

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 Wall Street Journal

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

From 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 Wall Street Journal

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

From 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 Wall Street Journal