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Pastimes : Ask Mohan about the Market

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To: robnhood who wrote (14098)2/14/1998 10:16:00 AM
From: tekgk  Read Replies (1) of 18056
 
Russell,

Thanks for the effort. What I am thinking of doing is shorting the Euro dollar and going long the US T-Bill. This spread is known as the TED spread as far as I know. I have no idea what an ed bed and ded spreads are since I generally stay away from the futures. The TED spread will be one of my few exceptions.

My reasoning is that there will be a lot of uncertainty about the Euro and it's effect. The volatility should be starting any day now, since the participating currencies will be announced on May 1 and they will be bolted together at that time. Getting historical Euro dollar rates is all I really need. I can get T-Bill rates from the fed. I can then subtract the two to get the spread.
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