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A yield spread is the difference in yield between debt instruments with different characteristics.
The yield spread on government bonds with different maturities is an often-cited metric. For example, the yield of 10-year treasuries minus 3-month treasuries. If the former is 5% and the latter is 4% then the spread is 1% (5 minus 4).
Related Links
Wikipedia’s article on yield spread
DSP article about yield spread uses
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