The Morningstar US Core Bond Index lost 2.71% through the first three quarters of 2026, combining a 5.67% price decline with a 2.84% income return, Morningstar — Financial Advice reported on Oct. 28.
The index began 2026 yielding 4.3%, compared with yields barely above 2% at the start of 2022, the year the report calls the worst bond market ever. The Morningstar LSTA US Leveraged Loan Index, which started the year with an 8% yield, is the top performer among the fixed-income indexes cited.
Advisors comparing bond sleeves can use the 2.84% income return, which offset more than half of the core index's 5.67% price decline.
Income absorbed half the core bond index's price loss
Return components, %, first three quarters of 2026
- Above zero
- Below zero
- Income return+2.84%
- Total return−2.71%
- Price return−5.67%
Show as table
| Label | Value (%) |
|---|---|
| Price return | −5.67% |
| Income return | +2.84% |
| Total return | −2.71% |
Reported by the Products & portfolios desk from Morningstar — Financial Advice. Published . Corrections