There is news on Bloomberg.
"The cost of exchanging fixed for floating interest-rate payments for two years climbed to a record high as investors sought to lock in rates. The spread between the rate on a two- year interest-rate swap, used to hedge against and speculate on interest-rate swings, and the Treasury two-year note yield, reached 110.06 basis points, the largest since at least November 1988, when Bloomberg began compiling data."
I charted the 2-year swap and find that its downtrend is bearish for stocks and its uptrend is bullish for stocks. But I don't know why its trend has such implication. In addition, I have got only 8 year data and I don't know whether the above conclusion can stand the test of time.
When I charted the spread between the 2-year swap and 2-year T-Note, I don't find any hints to develop a trading strategy for stocks.
I don't know whether higher spread is bearish for stocks and the reasons why.