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yield spread investment & finance definition
The
difference in the yield between different issues of securities. There is a
yield spread between the U.S. Treasury’s 2-year notes and the 30-year bond.
Yield spread also exists between corporate and Treasury debt. For instance, the
yield spread between a 10-year corporate bond and the 10-year Treasury note
could be 75 basis points. This means that the corporate bond pays 0.75 percent
more than the Treasury note.
See yield spread in Wall Street Words
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