Bond prices and interest rates move in opposite directions, so bond market volatility was high in 2022 and 2023, when the Federal Reserve raised the federal funds rate at a record pace.
But uncertainty about the path of interest rates can destabilize bonds, too, so price swings have continued into 2024. "It's been a challenging time," says Elizah McLaughlin, who manages the Fidelity Intermediate Municipal Income Fund (FLTMX) with Cormac Cullen and Michael Maka.
