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'''Swap spreads''' are the difference between the [[swap rate]] (a fixed interest rate) and a corresponding government [[bond yield]] with the same maturity ([[United_States_Treasury_security#Treasury_bond|Treasury securities]] in the case of the United States).<ref>{{Cite web|url=https://www.cfainstitute.org/learning/products/publications/inv/Documents/fixed_income_chapter10.ppt|title=The term structure and interest rate dynamics Chapter 10|publisher=CFA Institute}}{{Dead url|date=February 2024}}</ref>
For example, if the current market rate for a five-year swap is 1.35 percent and the current yield on the five-year Treasury note is 1.33 percent, the five-year swap spread would be 0.02 percentage points, or 2 [[Basis point|basis points]].<ref>{{Cite web |last= |first= |date= |title=an empirical analysis of interest rate swap spreads |url=http://faculty.mccombs.utexas.edu/keith.brown/Research/JFI-03.94.pdf
Often, [[fixed income]] prices will be quoted in "SWAPS +", wherein the swap rate is added to a given number of basis points. The swap rate there is simply the yield on an equal-maturity Treasury plus the swap spread.
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