Indicators Mixed

• The yield on 3 month treasuries declined sharply to 0.42% from 0.48%.

It was 0.48 yesterday and slightly getting worse. Usually the 3 month trades below the target Fed Funds rate by around 25 bps, so this is too low with the Fed funds rate at 1.0%. It should increase closer to the target rate.

• Libor declined again today.Three-month U.S. dollar slid 0.16 point to 3.03 percent from 3.1925.

U know i will be happy when libor comes below 3. Nice challange.

• The TED spread 2.60, down from 2.70.

Slightly better also today. But im still waiting to move below 2.

• USD-JPY currencies up to 98.5100.

Same with yesterday. It will be nice if currency up over 100.

• Nonfinancial A2/P2 spread is at a new record ! Up to 4.72 from 4.69.

Its about commercial paper rates and outstanding. The risk of default for lower quality paper increases because of a recession.This spread increases too. If we can say that credit crisis is over,this spread would decline. But its still increasing.

• VIX down to 59.89.

Best data. This is still way too high, but significantly below the peak of 80.6. If volatility decreases, markets would calm down.

- Today Libor and VIX down, but 3 months treasuries yield down too. TED and A2/P2 spread still too high. But FED buys commercial papers thats why A2/P2 spread is at a record high. If we think like this, there is some progress on credit crisis.