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Chart of the day | Wrong said TED

Chart of the day | Wrong said TED
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First Published: Wed, Nov 23 2011. 10 40 PM IST

Yogesh Kumar/Mint
Yogesh Kumar/Mint
Updated: Wed, Nov 23 2011. 10 40 PM IST
The TED Spread, or the gap between three-month London interbank offered rate and three-month US treasury bills, is at its highest since the Lehman crisis, indicating liquidity problems in the developed nations.
Yogesh Kumar/Mint
How does its Indian equivalent look? The spread between three-month Mumbai interbank offered rate (Mibor) and local T-bills, has narrowed, as the chart shows. That flies in the face of the borrowing of amounts up to Rs 1.3 trillion by banks through the repo window. Bond traders say the metric indicates that liquidity is not as tight as it was in 2008, when there was a global shock. It is at even this level because the Reserve Bank of India wants it there. What it also possibly means is that the money markets are not worried about the current crisis to the extent equities or forex markets indicate.
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First Published: Wed, Nov 23 2011. 10 40 PM IST