Most fixed-income indexes declined in the second quarter as rising interest rates took their toll.
Rising rates and widening credit spreads took their toll in the first quarter of 2018.
Fixed income performance was mixed as the yield curve compressed to its flattest level since before the financial crisis.
A brief bout of volatility kept interest rates low this quarter, while ongoing healthy corporate fundamentals supported corporate credit spreads.
Credit spreads remain tight as volatility declines to near-record lows.
Both the investment-grade and high-yield indexes are trading much tighter than their long-term historical averages.
Global interest rates continued to climb as investors priced in expectations that the global economy is entering a reflationary environment.