This is currently happening in the United States and has happened in Japan since 2006.9  The reason many market participants think that the yield curve will steepen and hence the term spread will increase when the Bank raises interest rates is probably that they expect the opposite to happen of the flattening of the yield curve seen at the time the Bank introduced the negative interest rate policy on January 29, 2016.
T2S will create a single European, borderless, settlement platform, offering highly secure delivery versus payment for the settlement of securities, using central bank money. By combining cash and securities settlements in one shared platform, it will create a single pool of securities available to market users through their chosen CSD, irrespective of the location of the issuer, the security or the settlement counterparty.