A Visual Guide to Bond Market Dynamics


This post is by Dorothy Neufeld from Visual Capitalist


The following content is sponsored by New York Life Investments

A Visual Guide to Bond Market Dynamics

Bond markets have been rattled given recent events in the banking industry.

The good news is that the Federal Reserve, U.S. Treasury, and Federal Deposit Insurance Corporation are taking action to restore confidence and take the appropriate measures to help provide stability in the market.

With this in mind, the above infographic from New York Life Investments looks at the factors that impact bonds, how different types of bonds have historically performed across market environments, and the current bond market volatility in a broader context.

Bond Market Returns

Bonds had a historic year in 2022, posting one of the worst returns ever recorded.

As interest rates rose at the fastest pace in 40 years, it pushed bond prices lower due to their inverse relationship. In a rare year, bonds dropped 13%.

YearBloomberg U.S. Aggregate Bond
Index Total Return
2022-13.0%
2021-1.5%
20208.7%
20197.5%
20180.0%
20173.5%
20162.7%
20150.6%
20146.0%
2013-2.0%
20124.2%
20117.8%
20106.5%
20095.9%
20085.2%
20077.0%
20064.3%
20052.4%
20044.3%
20034.1%
200210.3%
20018.4%
20018.4%
200011.6%
1999-0.8%
19988.7%
19979.7%
19963.6%
199518.5%
1994-2.9%
19939.8%
19927.4%
199116.0%
19909.0%
198914.5%
19887.9%
19872.8%
(Read more...)