Bond Market Turmoil Could Last a While. How to Ride It Out.

It is an exciting time for fixed income—and a terrifying one, too. Central banks are in the midst of the most dramatic tightening of monetary policy in a generation, which has helped push yields on some risk-free U.S. Treasuries to 15-year highs. No wonder fixed income is back in vogue as a competitive alternative to equities.

Yet, because bond prices move inversely to yields, price loss has been as ugly as yield growth has been alluring. The


iShares U.S. Treasury Bond


(ticker: GOVT) and


iShares Core U.S. Aggregate Bond


(AGG) exchange-traded funds are both down more than 14% in 2022.