Perspectives · Fixed income · 2026
Duration: the number that decides how much rates hurt
Duration measures how sensitive a bond's price is to a change in interest rates. A bond with a duration of seven years might fall about 7% if yields rise by one percentage point, all else equal. Longer-dated and lower-coupon bonds have longer durations.
That's why the same rate rise can leave a short-dated portfolio almost untouched while badly hurting a long-dated one, as the market history in this archive shows repeatedly.
Asset classes:Bonds
General information only; not investment advice. Read the risk warning.