Meaning of “yield spread” in the English Dictionary

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"yield spread" in Business English

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yield spreadnoun [ C ]

uk us

also 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.

(Definition of “yield spread” from the Cambridge Business English Dictionary © Cambridge University Press)