Given the current state of the economy, and any other factors you believe are important, what do you anticipate will happen to bond prices and yields?
Bonds, like all investments, reflect the risk/reward tradeoff. Bonds with higher risk of default pay higher yields. Corporate bonds therefore do better than Treasuries when the economy is doing well, while the opposite holds when the economy weakens.
The current state of the economy is therefore an important consideration. Consumer spending has fallen off substantially, and the housing market has felt the effects of the mortgage ...