Web Trader MT5
The term spread compares interest rates on similar debt with different times to maturity. A commonly watched version subtracts the 2-year US Treasury yield from the 10-year yield. If the 10-year yields 4.5% and the 2-year yields 4%, the spread is 0.5 percentage points. Longer-term yields are normally higher because investors commit their money for more time. When short-term yields rise above long-term yields, the spread becomes negative and the yield curve is said to be inverted. Different analysts may use different maturity pairs, so “the term spread” is incomplete unless the two rates are identified.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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