Financial ConditionsCalculatedContinuous

TED Spread

What is TED Spread?

Difference between 3-month SOFR and 3-month Treasury bill yield.

Why it matters

Measures interbank credit risk and systemic trust.

How to read prints

When it rises

Bank funding stress rising; counterparty risk elevated.

When it falls

Bank funding stress easing; interbank market healthy.

Frequently asked

What is the TED spread?⌄
Historically: 3-month LIBOR minus 3-month T-bill yield. With LIBOR retired (June 2023), the comparable measure is 3-month SOFR or BSBY minus 3-month T-bills.
What did it measure?⌄
Bank credit risk vs. the risk-free rate. A widening TED spread signaled banks were demanding more compensation for lending to each other.
Is TED still useful?⌄
The classic TED is no longer published. The current functional equivalents are the FRA-OIS spread and SOFR-OIS basis.
What level signaled stress?⌄
Pre-2008 normal was 20-50 bp. The spread blew out to 460 bp during the GFC.

Track it on Market Ontology

Monitor TED Spread in real time on Financial Conditions, alongside regime classification, transmission mapping, and cross-asset context.

SourceCalculated
FrequencyContinuous
CategoryFinancial Conditions
FRED SeriesTEDRATE
Unitbp
Related ModuleFinancial Conditions

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