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ps to make them in some way ‘equivalent’ to a bo nd. The spread is bond-specific. Becaus e the Par/Par spread involves the application of a s pread to the floating leg of the swap, swap spreads are often referred to as Libor Spreads . <span>Government bonds and bonds of ver y good credit issuers, such as agencies and supras – especially shorter issues, trade at negative spreads to swaps. A ‘widening’ of spreads, therefore, refers to a richening of the bond (a decline i n bond yield compared to s waps). For credits with a positive Libor spread, the opposite is true.