yield spreadnoun [ C ]
ukusalso yield gap FINANCE the difference between the rates of interest on two different types of share, bond, etc.:
yield spread between sth and sth Demand has narrowed the yield spread between high- and low-quality bonds.
The positive yield gap between shares and index-linked gilts has widened.
BANKING the difference between what banks pay to borrow money and what they charge for lending it:
The yield spread is an economically significant predictor of real economic activity.