When will bonds act like bonds again?

2022: A Bond Oddity. Like many who left theaters after watching the groundbreaking 1968 sci-fi epic 2001: A Space Odyssey, investors looking back on this year’s fixed income results may be scratching their heads, wondering what it was they just saw. While 2022 has been historically challenging for almost all asset classes, the unwavering hawkish monetary policy of central banks to crush inflation fueled an upward spiral in rates that was particularly jarring for bonds.