Treasury yields are lower than pre-crash levels and will eventually normalize, putting downward pressure on government bonds.
Corporate bond yields are comparable to pre-2008 levels and therefore corporate bonds are somewhat less vulnerable to rate increases than Treasuries.
Intermediate-term bonds have performed better than short-term and long-term bonds over the past 3 years, 1 year and year-to-date. If rates, rise intermediate-term bonds should outperform long-term bonds.
Intermediate-term Treasuries out-performed intermediate-term corporates and intermediate municipals over 3 years, but are down over 1 year, whereas corporates and municipals are up.
High yield corporates under-performed investment grade corporates and municipals over 3 years, but have out-performed year-to-date...
Charts Window on Key Bond Categories