yield spread
noun[C]
ukusFINANCE(alsoyield gap)
thedifferencebetween theratesofintereston two differenttypesofshare,bond, etc.:
yield spread between sth and sthDemand hasnarrowedtheyieldspreadbetween high- and low-qualitybonds.
Thepositiveyieldgapbetweensharesandindex-linkedgiltshaswidened.
BANKING
thedifferencebetween whatbankspaytoborrowmoneyand what theychargeforlendingit:
Theyieldspreadis aneconomicallysignificantpredictor ofrealeconomicactivity.