--- title: "Bloomberg US Aggregate Bond Index Annual Returns" description: "Historical annual total returns for the Bloomberg U.S. Aggregate Bond Index from 1990 to 2024, including the record -13.0% loss in 2022 and the 60/40 portfolio." canonical: https://www.getswoopr.com/tables/returns/bloomberg-us-aggregate-annual-returns/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > The Bloomberg U.S. Aggregate Bond Index ("Agg") is the primary benchmark for U.S. investment-grade bonds, covering Treasuries, agency bonds, investment-grade corporates, and mortgage-backed securities. The Agg has delivered average annual returns of approximately 4.5-5.5% since 1976. The worst year was 2022 (−13.0%), the worst in the index's history. The best year was 1982 (+32.6%) when interest rates fell sharply. # Bloomberg U.S. Aggregate Bond Index Annual Returns History ## Bloomberg U.S. Aggregate Bond Index Annual Total Returns | Year | Total Return | Notable Event | | --- | --- | --- | | 1990 | +8.7% | Gulf War / rising rates | | 1991 | +15.7% | Rate cuts / recession recovery | | 1992 | +7.4% | Low-rate environment | | 1993 | +9.8% | Strong bond rally | | 1994 | −2.9% | Fed surprise hikes | | 1995 | +18.5% | Rate cut cycle | | 1996 | +3.6% | Moderate year | | 1997 | +9.7% | Asian crisis flight to safety | | 1998 | +8.7% | LTCM / Russia flight to safety | | 1999 | −0.8% | Y2K / rising rates | | 2000 | +11.6% | Dot-com bust / flight to safety | | 2001 | +8.4% | 9/11 / rate cuts | | 2002 | +10.3% | Equity bear market / bonds rally | | 2003 | +4.1% | Recovery / rates rise modestly | | 2004 | +4.3% | Fed begins hiking | | 2005 | +2.4% | Flat yield curve | | 2006 | +4.3% | Stable rates | | 2007 | +7.0% | Subprime crisis / flight to safety | | 2008 | +5.7% | GFC -- Treasuries rally, corporates fall | | 2009 | +5.9% | Credit recovery | | 2010 | +6.5% | QE2 / rates fall | | 2011 | +7.8% | Europe crisis / U.S. downgrade / flight to safety | | 2012 | +4.2% | QE3 / low rates | | 2013 | −2.0% | Taper tantrum | | 2014 | +6.0% | Rates fall unexpectedly | | 2015 | +0.5% | First Fed hike since 2006 | | 2016 | +2.6% | Trump election rate rise | | 2017 | +3.5% | Moderate hike cycle | | 2018 | +0.0% | Fed hiking / near-flat | | 2019 | +8.7% | Fed pivot / rate cuts | | 2020 | +7.5% | COVID / emergency rate cuts | | 2021 | −1.5% | Inflation fears emerge | | 2022 | −13.0% | Worst year on record -- 425bp Fed hikes | | 2023 | +5.5% | Rates stabilize / recovery | | 2024 est. | +4.5% | Estimated; rates begin falling | Source: [Bloomberg: U.S. Aggregate Bond Index](https://www.bloomberg.com/markets/rates-bonds/bloomberg-us-aggregate-bond-index). Data through 2024; last checked September 2026. ## Frequently asked questions Why did the Bloomberg Agg lose 13% in 2022? The 2022 Bloomberg Agg loss of −13.0% was the worst annual return in the index's 46-year history, ending a narrative that bonds were "safe" assets. The cause: the Federal Reserve raised rates by 425 basis points in 2022, the fastest tightening since the early 1980s. Higher interest rates reduce bond prices (duration risk). The Agg's average duration of approximately 6.5 years means a 200 basis point rate rise causes approximately a 13% price decline. Combined with a starting yield of only approximately 1.75% (providing little income cushion), the total return was −13%. This was historically anomalous -- the previous worst Agg year was −2.9% (1994). The 2022 loss also coincided with a −18% S&P 500 return, eliminating the traditional bonds-stocks diversification benefit. Does the 60/40 portfolio still work after 2022? The 60% stocks/40% bonds portfolio suffered its worst year since the Great Depression in 2022 (−16% approximately), as both stocks and bonds fell simultaneously. This is unusual: historically, bonds rally when stocks fall (flight to safety), providing diversification. The 2022 correlation breakdown reflected an unusual inflation shock -- inflation hurts both stocks and bonds simultaneously. Historical data suggests the 60/40 strategy works over full market cycles (the 2023 recovery was strong), but investors should understand its inflation vulnerability. Alternatives to pure 60/40 include: adding commodities, REITs, and TIPS as inflation hedges; shortening bond duration; using Treasury I Bonds (inflation-linked); or accepting more equity risk with a longer investment horizon. What is the current yield of the Bloomberg Agg? As of late 2024, the Bloomberg Agg's yield-to-worst was approximately 4.5-5.0%, up from approximately 1.75% in early 2022. This yield represents a fundamental improvement in the Agg's prospective returns compared to 2020-2021, when near-zero rates made bonds unattractive relative to stocks. The Agg's composition: approximately 45% U.S. Treasuries, 25% mortgage-backed securities (MBS), 25% investment-grade corporate bonds, and 5% agency bonds. For investors with 5+ year time horizons, the 4.5-5.0% starting yield implies roughly 4.5-5.0% expected annual return from bonds. ## Worked Example: Two Drawdowns, Thirty Years Apart Put $10,000 into the Agg at the start of 1994. The year's -2.9% leaves $9,710; 1995's +18.5% takes it to $11,506, well past the starting value within a year. Now put $10,000 in at the start of 2022. The -13.0% leaves $8,700; 2023's +5.5% brings it to $9,179 and the 2024 estimate of +4.5% to $9,592, still $408 short after two recovery years. The difference is the starting yield: in 1994 the index yielded enough for one good year to repair the loss; in 2022 it did not. Across the 34 completed years in the table, 1990 to 2023, the arithmetic average return is 5.26% a year and the compound (geometric) return is 5.10%; $10,000 at the start of 1990 becomes $54,303 by the end of 2023. Five of the 34 years were negative and none before 2022 lost more than 2.9%, which is the context for calling 2022 the worst year on record rather than a typical bad one. ## Cite This Page If you reference this table in your own work, use the following citation format and add the date you accessed it: > Swoopr Editorial Team. (2026). *Bloomberg U.S. Aggregate Bond Index Annual Returns History*. Swoopr Investment. [https://www.getswoopr.com/tables/returns/bloomberg-us-aggregate-annual-returns/](https://www.getswoopr.com/tables/returns/bloomberg-us-aggregate-annual-returns/) Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised. ## References - [Bloomberg: U.S. Aggregate Bond Index](https://www.bloomberg.com/markets/rates-bonds/bloomberg-us-aggregate-bond-index) [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) produces independent investment education and research content. Corrections: [corrections policy](https://www.getswoopr.com/legal/corrections-policy/). Standards: [editorial standards](https://www.getswoopr.com/legal/editorial-policy/).