Bond prices rose across the board following a
difficult 2013 and yields fell, with the 10-year
Treasury yield closing the first quarter 0.3% lower.
At a 1.8% quarterly return for the Barclays
Aggregate Bond Index, the pace of bond
performance is unsustainable, and we continue to
suggest a defensive posture against rising interest
rates in the bond market with an emphasis on
more economically sensitive sectors.