Wednesday, October 22, 2008

Financial Market Improvements? Yup. Some.

Since the Fed (and Congress) have jammed several bazillion dollars into the markets, things have improved slightly.

Key indicators:

The TED spread: 2.74 down from 3.04 yesterday (and over 4.00 only 10 days ago)

The yield on 3 month treasuries: 1.09% up from 0.93% (which tells us that investors are moving away from T-bills to other securities--like commercial paper, or short-term bank/commercial notes.)

The A2P2 spread is 4.18 for Monday, down from 4.36 on Friday This is the difference in interest yield between high-quality and mid-quality non-financial commercial paper.

HT: CR

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