Expand chart
Data: Federal Reserve Bank of St. Louis, FactSet; Chart: Axios Visuals

The TED spread, a measure of the perceived credit risk in the U.S. economy, matched its lowest level in at least 40 years last week.

The breakdown: As Ken Faulkenberry at Arbor Investment Planner explains it: "Comparing the risk free rate [of 3-month U.S. Treasuries] to LIBOR provides an indication of the risk the global markets perceive in the global banking system."

  • "A rising or high TED spread will often precede a downturn in the stock market because it indicates increasing risk of bank defaults and economic instability. A falling or low TED spread would indicate low risk of bank defaults and economic stability."

How it works: The metric tracks the 3-month U.S. Treasury bill yield and the value of the 3-month eurodollar futures contract, or 3-month LIBOR. ("T" for Treasury bill and "ED" for eurodollar.) It essentially measures the level of trust between banks or how creditworthy they deem one another.

Go deeper ... Warning: Signs of credit crisis grow

Go deeper

Updated 20 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: The swing states where the pandemic is raging — Pence no longer expected to attend Barrett confirmation vote after COVID exposure.
  2. Health: 13 states set single-day case records last week
  3. Business: Where stimulus is needed most.
  4. Education: The dangerous instability of school re-openings.
  5. States: Nearly two dozen Minnesota COVID cases traced to 3 Trump campaign events
  6. World: Unrest in Italy as restrictions grow across Europe.
  7. Media: Fox News president and several hosts advised to quarantine.
Updated 38 mins ago - World

In photos: Unrest in Italy as coronavirus restrictions grow across Europe

An anti-government demonstration against the economic consequences of the new measures in Turin, Italy, where luxury stores were "ransacked," on Oct. 26, the Guardian reports. Photo: Diego Puletto/Getty Images

Protests in Italy against fresh COVID-19 pandemic restrictions that came into effect Monday descended into violence in Milan and and Turin, where police used tear gas to disperse demonstrators, per the Guardian.

The big picture: The protests in Italian cities still reeling from the first lockdown mark some of the biggest resistance against measures seen yet as restrictions return across Europe, which is facing a second coronavirus wave. From Denmark to Romania, this is what's been happening, in photos.

Republicans and Dems react to Coney Barrett's Supreme Court confirmation

President Trump stands with Judge Amy Coney Barrett after she took the constitutional oath to serve as a Supreme Court justice during a White House ceremony Monday night .Photo: Tasos Katopodis/Getty Images)

President Trump said Judge Amy Coney Barrett's Senate confirmation to the Supreme Court and her subsequent taking of the constitutional oath Monday was a "momentous day," as she she vowed to serve "without any fear or favour."

  • But as Republicans applauded the third conservative justice in four years, many Democrats including Speaker Nancy Pelosi (Calif.) warned of consequences to the rush to replace the late Justice Ruth Bader Ginsburg ahead of the Nov. 3 election, with progressives leading calls to expand the court.