The Globe and Mail reports in its Thursday edition that U.S. government bond investors have racked up positive returns so far this year, with the higher income from bonds offering a buffer against market weakness if the Federal Reserve increases interest rates again. A Reuters dispatch to The Globe says that this is a turnaround from the losses of 2022, which marked the end of a 40-year bull market in bonds, as the U.S. central bank rapidly hiked rates to curb the hottest inflation in more than four decades. Rate hikes erode the value of existing bonds because new paper offers higher yields, but now, even if more increases are coming, the bulk of monetary tightening is most likely over. This leaves investors to focus on how to play any economic slowdown -- generally a good scenario for bonds because when central banks ease rates to stimulate demand existing fixed-rate securities are worth more. With the end of the hiking cycle in sight, and with high-quality bond yields at 4 per cent to 5 per cent, investors can "get paid to wait," said Emily Roland at John Hancock Investment Management. "We still like bonds, even if we do see potentially higher yields over the short term, because that income is now so compelling."