The Wall Street Journal

After Another Bad Year for Bonds, Investors Lose Faith in a Turnaround

Many worry that a tough environment for bonds could get even worse

Wall Street investors are questioning whether bonds can outperform T-bills.
Wall Street investors are questioning whether bonds can outperform T-bills. Photo: Michael Nagle/Bloomberg

Wall Street investors entered each of the past two years brimming with optimism about U.S. Treasurys and other types of high-quality debt. Each time, they were disappointed.

Now, they are far more guarded. In recent weeks, money managers have been dumping Treasurys, while savers have been rushing out of longer-term bond funds. 

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