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The gap between two yields, for instance France against Germany at 10 years.
Definition
The gap between two yields, for instance France against Germany at 10 years.
Why it matters
Rates are the price of money: they set the cost of credit, the value of bonds and, in turn, that of nearly every other asset.
How to read it in the news
Remember the golden rule: when rates rise, existing bond prices fall, and vice versa. Moves are read in basis points (0.01 point).
Notitia newsroom · education, not investment advice.