Fixed income bond funds such as VAB and XBB have been hitting fresh 4 year lows. Relatively though, they have been dropping less than the index, so they have been doing their job as a good portfolio stabilizer. Kind of reminds me of 10 years ago when everything went down together, just that bonds went down not as fast. Even shorter term bond funds are down. Of course, this may mean better returns going forward as yields slowly creep up.