DV01 / PV01¶
One-line definition¶
Approximate dollar change in value for a one-basis-point yield move.
Approximation¶
DV01 ≈ ModifiedDuration * Price * 0.0001
For a portfolio, use market value / instrument-level sensitivities consistently.
Units¶
Currency per basis point.
Why PMs care¶
It makes rate exposure additive and hedgeable in dollar terms.