These prepayments shorten the average life of the mortgage bond, reducing its yield, with the price increasing less than expected when rates fall. This is called "negative convexity" and leaves ...

GOVT invests throughout the treasury yield curve. The fund currently possesses a 4.14% SEC yield, convexity of 0.71, and ...

US Treasury spreads have barely tightened since the Fed began easing in September, challenging previous cyclical patterns.

These prepayments shorten the average life of the mortgage bond, reducing its yield, with the price increasing less than expected when rates fall. This is called “negative convexity” and ...