Convexity

Convexity describes the relationship between price and yield for a standard, noncallable bond.

Bond prices and yields move in opposite directions: A bond's yield rises when its price falls, and falls when its price rises.

When the relationship between price and yield is graphed, it produces a line that is curved, or convex, as this graph shows. For more detailed information on convexity, click here.

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Dow Jones S&P 500 NASDAQ 10-Year Note
12,454.83 1,317.82 2,837.53 17.45
Oil *
107.26
DOWN
74.92
DOWN
2.86
DOWN
1.85
DOWN
0.14
10 Yr
1.74%
SPDR Gold
152.68
-0.60%
-0.22%
-0.07%
-0.80%
Data delayed 20 minutes

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