philgoddard Mar 22, 2020:

Up or down? Down. The shorter the duration, the quicker you get your money back.

Laura Vinti (asker) Mar 22, 2020:

Thanks for the link -- it seems that often people use the same work but mean different things.
"The dual use of the word "duration", as both the weighted average time until repayment and as the percentage change in price, often causes confusion. Strictly speaking, Macaulay duration is the name given to the weighted average time until cash flows are received, and is measured in years. Modified duration is the name given to the price sensitivity and is the percentage change in price for a unit change in yield.
Both measures are termed "duration" and have the same (or close to the same) numerical value, but it is important to keep in mind the conceptual distinctions between them." (from Wikipedia)

Laura Vinti (asker) Mar 22, 2020:

Yes, I am translating into Italian ...but I still need to understand what it means. What does it really mean that the "duration improved"? Did it go up? Down?
I also wonder if fund managers really mean "modified duration" when they talk about duration.
Thank you!

philgoddard Mar 22, 2020:

http://en.wikipedia.org/wiki/Bond_duration

philgoddard Mar 22, 2020:

Are you translating into Italian? If so, Italian uses the English word, duration, so you don't need to know what it means - though you could always look it up if you're interested. Rallied means improved, as Lydia says.