The easy wins investors have come to anticipate from buying government bonds are (still) yet to emerge. The paring back of interest rate cut expectations in the opening months of 2024 means yields on 'safe' fixed-income instruments are materially higher than they were at the start of the year.
To give one example, having hovered somewhere around the 3.5 per cent mark at the turn of the year, the yield on a 10-year UK gilt is now close to 4.2 per cent.
That's not of the greatest concern to those investors who bought government bonds directly and are happy to hold them to maturity, but it does matter if the rollercoaster ride continues for bond funds.