Fix income portfolio management Mock 2010 Q36

contribution to spread durantoin:credit sector is 1.1,treasury sector is 0

Forecast1:spreads to narrow in all other spread sectors

Forecast2:a positively sloped yield curve with short rates rising 25 basis points and long rates rising by about 75 basis points.

ans :lengthen duration in credit sector and shorten it in the treasury sector

in my opinion :in a rising interest environment, investor should shorten duration in credit sector

what 's wrong with my answer?

Forecast 1 says spreads will narrow, therefore prices will go up, therefore increase your duration/exposure to that sector