yield curve

CFA Level III
#1

hi if someone has greater exposure to Long term bonds why would they be more concerned with a flattening yeild curve? i understand it means they will not be receiving much more benifit in yield for holding longer term bonds but when the yield curve flatterns wont the LT bonds - which have higher dureation, go up in value?

thanks,

Keval

#2

yield curve also rises when it flattens (and gets lower when it steepens.)

Admittedly, both long and short-term bondholders would be screwed.