"""If Europe solves its mess than money will flow out of the bond ETFs and funds and into equities and the bond ETFs and funds will plunge... ?"""

Whichever way bond prices go, it will probably be based on a whole lot more factors than above.

I bot some May 2040 US treas stripped bonds just a little over a year ago for 250 each. I just sold them today for 410 each. The yield today around 3% I think, but I just glanced at it. In other words, there is a lot more room on the downside for your bond funds than there is on the upside. But, that's just my opinion.

If you looking for individual bonds, I still hold/like MeadWestVaCo. The ones I hold now are due 2032, I think, coupon is 6.8%, and selling below par for a yield around 7%. I happen to think they are an excellent risk/reward ratio...much better risk/reward ratio than I could get with those stripped treasuries.