Our fixed income focus page looks at the diversification potential of bonds. The left-hand chart shows the returns from 10-year government bonds during periods where equities were falling in value. As yields declined over the past 20 years, the ability of bonds to deliver strong positive returns during equity market shocks was gradually diminishing. The right-hand chart looks at scenarios for returns from 2-year and 10-year US Treasuries depending on how yields move by the end of 2023.