Even further, which is most important, in a rate cut cycle which where we will be for next 2-3 years, Duration is HUGELY positive to long bond. Every 0.1% down tick in 20Y long bond adds roughly 2% appreciation in bond value.
Buying 20Y long bond at 4.8% today, means 20%+ bond value appreciation when that yield goes down to 3.5% in a few years, and this does not even include the coupon payment each year (which adds another 10-15% in 3 years).
The duration HURTs long bond only when we are in the rate inrease cycle.
