My concern remains that regardless of how long the fed wants to keep rates low, those in bond funds are almost guaranteed to feel pain because what the funds currently hold have no place to go but down. In simpliest terms, if they are trading, they are trading rate for risk. If they are not trading, they are holding bonds that will have to depreciate as they approach maturity - and regardless of what they are doing, in most cases, they are probably buying bonds that yave a lower YTM than what they currently are holding.NAV has little if any upside potention this year. All the volatility is likely to be downward.Last year was another great year for bonds and bond funds. Signs are indicating that the ride is closer and closer to being over.
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