The Globe and Mail reports in its Friday, Nov. 3, edition that bond investors bruised by a record hiking cycle are increasing their positions, betting that central banks really are done with raising rates and their next move will be down. A Reuters dispatch to The Globe reports that Goldman Sachs Asset Management fixed income macro strategist Gurpreet Gill says, "Valuations now look much more attractive than they did a few months ago." A drop in inflation and economic growth followed by swift rate cuts was the scenario most bond bulls predicted in late 2022. Instead, bonds underwhelmed again this year as labour markets stayed tight and central banks said inflation remained too high. Inflation and rising interest rates make bonds less appealing because they erode the value of the fixed coupons paid by the debt securities compared with cash in the bank. Reuters says bludgeoned valuations help explain why investors are doubling down on bond investments with 10-year Treasury yields last month pushing above 5 per cent for the first time since 2007. For some investors, government bonds are too cheap compared with future expectations for interest rates and inflation.