Bond Funds See Huge Losses in 2023 Despite Predictions of 'Year of the Bond'

2023 was supposed to be "the year of the bond" but instead bond funds are seeing huge losses, with the downturn being called one of the toughest years ever.

Experienced investors like Lacy Hunt and HSBC's Steve Major admit being wrong in their assumptions about bonds this year.

Yields have surged higher than expected as inflation falls but the economy remains strong, defying predictions of recession bringing bond gains.

Major fund managers have trimmed their bullish bond positions but are hesitant to retreat fully, still believing economic weakness could boost bonds.

Some managers remain optimistic, calling for a bond comeback in 2023 despite three straight years of losses and market signals still pointing to more Fed hikes ahead.