Not the worst year ever in stocks around the world, but certainly among the worst, 2022 proved the absolute worst for U.S. bond markets since the mid-1970s. Though the Fed was as is still lifting its rate target, the final quarter of the year offered a break as investors began to expect a Fed reversal on account of the potential for recession. So, even as investors likely cheered a Q4 gain in their stock positions, they perhaps were even a bit happier for the respite from declines in bond holdings during the final quarter of 2022.