German-Bond Investors Just Lost 25 Years of Yield in 14 Days
Exit bull, pursued by bear
The Frankfurt Stock Exchange.
Photographer: Hannelore Foerster/BloombergThis article is for subscribers only.
Duration: d(y)o͝orˈāSH(ə)n/ Noun -- The time in which an event takes place. Also, the sensitivity of a bond’s price to changes in its yield.
Over the past couple of weeks, investors in German government bonds have received a crash course in "duration," a geeky concept that is nevertheless a driving force in fixed income.