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Bonds, Bonds, Bonds — There's No Place Like a Safe Haven

If you think bond fund managers are sounding more than a bit repetitious, you're right, but don't expect that to change anytime soon — especially with U.S. interest rates expected to hug historic lows for another year or so.

If you think bond fund managers are sounding more than a bit repetitious, you're right, but don't expect that to change anytime soon — especially with U.S. interest rates expected to hug historic lows for another year or so.

Bob Brown, Fidelity's bond group president, says a friendly rate-environment, as well as the need for a safe haven and diversification, essentially make Treasurys, err, a no-brainer.

"That's how we are positioning our funds," Brown said on CNBC's Squawk Box at the Morningstar Investment Conference in Chicago.

In fact, Fed boss Ben Bernanke's comments Tuesdayadded to the case for fixed income. The "dovish tone" — featuring downgrades of economic growth and inflation forecasts — and the assurance that "the Fed stands ready" were key takeaways for Brown, whose group manages a quarter trillion in funds.

"We don't expect a rise in rates," says Brown.

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Though the long-running Treasury market rally seems dumbfounding to some, Brown suggested there may be strong demographic trends supporting it.

"Baby boomers are interested in wealth preservation," says Brown, having spent decades focusing on income generation.

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