Interest Rate Spread Against German 10-Year Bonds One indicator of investors’ perceptions of the risk of government default is the spread of interest rates on government bonds between that country and a country that is perceived as a safe investment. The spread of the interest rates on 10-year government bonds for Italy and Spain, measured against the interest rate on German bonds, rose as investors’ fears of default by Italy and Spain increased, then fell after the European Central Bank announced that it would, if necessary, buy national bonds to avert a cash crunch.Sources: Federal Reserve Bank of St. Louis; OECD.