Basisbreiten

Basisbreiten is a term used in economics and finance that refers to the difference between the yield of a benchmark bond and the yield of a similar bond with a slightly different maturity. This difference is often used as an indicator of market sentiment and expectations about future interest rates. For example, if the basisbreiten between a 10-year Treasury bond and a 9-year Treasury bond is positive, it suggests that investors expect interest rates to rise in the future. Conversely, a negative basisbreiten would imply an expectation of falling interest rates.

The concept is closely related to the yield curve, which plots the yields of bonds with different maturities at a single point in time. Changes in the basisbreiten can signal shifts in the shape of the yield curve. Market participants pay close attention to basisbreiten as a tool for understanding and predicting economic conditions. It is a metric that can influence investment decisions and monetary policy. The term itself is of German origin, literally translating to "basis width."