QUICK DEFINITION
DV01 is the approximate change in a bond or portfolio's value for a one-basis-point move in yield.
WHY IT MATTERS
Why DV01 matters in bond markets
DV01 converts interest-rate exposure into a monetary amount, making risk comparable across positions and portfolios.
MARKET CONTEXT
How to think about it
Bond investors use dv01 as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is DV01 important for fixed-income investors?
← Back to the Bond Market Glossary Yes. DV01 converts interest-rate exposure into a monetary amount, making risk comparable across positions and portfolios.