This article was syndicated by Endowus in partnership with Eastspring Investments. In 2022, central banks tightened monetary policy aggressively in the face of elevated inflationary forces and geopolitical tensions. As a result, bond yields rose to their highest levels in years and bond prices hit lows. Based on current valuation levels, bond investors can enjoy a decent return as well as earn a stable coupon income. Nevertheless, the volatile market conditions in 2022 nudged investors to diversify their portfolios into higher-rated, lower-risk bond investments such as sovereign bonds in developed markets.