Is the bond bubble ready to burst? Well, that depends on whether it ever existed in the first place.
Bonds, the traditional safe harbor, have enjoyed a helluva run amid one of the worst bear markets in history. During the last three years, a ton of cash has poured into fixed-income vehicles such as bond funds, which have capitalized on the fear generated by a precipitous decline in stocks. Assets under management in bond funds have increased 51% from $792 million in March 2000 to $1.2 trillion at the end of February, according to the Investment Company Institute.