Lets Check Indicators Today

• The yield on 3 month treasuries declined sharply to 0.48% from 0.60%.

The 3 month yield is still some improvement from the worst of the credit crisis. It was close to zero couple days ago. So this is worse data.

• Libor declined today.Three-month U.S. dollar Libor fell to 3.1925%.

This is good data. I am still waiting for Libor comes to below 3.

• The TED spread 2.70, down from 2.82.

Slightly better but still too high. I will be happy the spread move back down at least 2.0.

• USD-JPY currencies up to 98.6650.

Seems good. Dollar needs to get strengthen versus Yen. It means investors are still interested in carry-trade.

• Nonfinancial A2/P2 spread is at a record ! Up to 4.69 from 4.55.

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.

After these indicators change, i cant say that things going well. Still problem on economy and volatility still too high. We need to follow and see.