There are two extremely difficult factors in the bond market currently the Fed is stepping on the pedal as quickly as ever and inflation is taking off to 40-year highs. Both of these put upward pressure on rates which move inversely with bond prices. However, some funds may prove more resilient or even move upward when rates rise. Rate hedge bond funds give investors an option exactly described, but they do come at a cost. One example is LQDH which is an interest hedged corporate fund, which has drastically outperformed its direct compliment, the unhedged LQD. However, these funds are for the extremely risk-averse investors.

Finsum: Rates may be stalling as noted by the recent 10-year dip which is a sign that bond prices might be undervalued currently.