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German-Bond Investors Just Lost 25 Years of Yield in 14 Days

Exit bull, pursued by bear
The Frankfurt Stock Exchange.

The Frankfurt Stock Exchange.

Photographer: Hannelore Foerster/Bloomberg

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.