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Bonds, haven for elderly and cautious, are getting torched

NEW YORK (AP) — Bonds are supposed to be the safe part of any nest egg, but they’re getting brutalized.

High-quality U.S. bonds have lost more than 10% so far this year, as of Monday, on pace for one of their worst years in history. The investors feeling it the most are the very ones who invest conservatively, favoring bonds instead of stocks in hopes of securing historically steady returns.

To put the misery in context: This year’s loss so far is more than three times as big as the worst year on records going back to 1976. The previous worst performance was a 2.9% loss in 1994, according to a widely followed index that measures investment-grade bonds.

So not only is losing money on bonds a surprise for many investors, the amount of this year’s carnage is also a shock.

“There’s kind of this false perception of:

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