A financial analyst is investigating the dynamics of interest rates using the Vasicek model, which is one of the popular short-rate models in fixed income analysis. The Vasicek model assumes that interest rates follow a mean-reverting process characterized by the following stochastic differential equation (SDE):

d r(t) = θ(μ - r(t))dt + σ dW(t)

where r(t) is the short interest rate at time t, θ is the speed of reversion, μ is the long-term mean interest rate, σ is the volatility of interest rates, and dW(t) represents a Wiener process. The analyst is interested in the implications of this model for bond pricing and the term structure of interest rates and wants to know which of the following statements about the Vasicek model and its influence on interest rate movement is correct.