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{{Underlinked|date=October 2019}}
'''Swap spreads''' are the difference between the '''[[Interest rate swap|swap rate]]''' (a fixed interest rate) and a corresponding '''government bond yield''' with the same maturity (Treasury securities in the case of the United States). <ref>{{Cite web|url=https://www.thestreet.com/tsc/basics/tscglossary/Swaps&_SwapSpreads.html|title=▼
▲'''Swap spreads''' are the difference between the '''[[Interest rate swap|swap rate]]''' (a fixed interest rate) and a corresponding '''government bond yield''' with the same maturity (Treasury securities in the case of the United States).
swaps and swap spreads|publisher=The Street}}</ref><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}}</ref>
For example, if the current market rate for a 5-year swap is 1.35 percent and the current yield on the 5-year Treasury note is 1.33 percent, the 5-year swap spread would be 0.02 percentage points, or 2 basis points.<ref>{{Cite web|url=http://faculty.mccombs.utexas.edu/keith.brown/Research/JFI-03.94.pdf|title=an empirical analysis of interest rate swap spreads|last=|first=|date=|website=|archive-url=|archive-date
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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