Convexity is a second-order measure of a bond’s expected price performance.  The chart below shows the durations of two different bonds.  One is a fixed-cash-flow bond (such as a ...

Such convexity is powerful as it helps us generalize from a few examples, learn new things quickly, and even helps us communicate and agree on what things mean.

Convexity tends to be more sensitive in the shorter end of the yield curve, thus greater variance as yields may be moving higher or lower. In 2013, it was the “taper tantrum” when the Fed was ...

Convexity buying looks to have started early this month, as yields slid to the lowest since late October, from 15-month highs in February, analysts said.

An explainer on negative convexity (what is it, why do we care, and why some folks think hedging against it played a role in the August bond rally). Photo Illustration by Emil Lendof/The Wall ...