Curve Steepening
Long-term rates rise relative to short-term rates.
A steepening yield curve occurs when the spread between long-term and short-term rates increases. This can happen through a 'bear steepener' (long rates rise faster than short rates) or a 'bull steepener' (short rates fall faster than long rates). Steepening typically signals expectations of future economic growth or inflation.
Curve Flattening
Long-term rates fall relative to short-term rates.
Key Rate Duration
Sensitivity to rate changes at specific maturity points on the curve.
DV01
Dollar change in value for a 1 basis point (0.01%) yield move.
CS01
Dollar change in value for a 1 basis point move in credit spread.
Macaulay Duration
The weighted average time (in years) to receive the bond's cash flows.
Modified Duration
Measures the percentage price change for a 1% yield change.