Summary

• Fidelity Total Bond Fund outperformed the Bloomberg U.S. Aggregate Bond Index in the first quarter, posting a 0.08% return compared to the index's -0.05% result.
• The U.S. Federal Reserve resumed the monetary-easing program it had paused in late 2024, cutting its policy interest rate by 25 basis points in September, October and December.
• March saw a sharp rise in bond yields as expectations for Fed cuts shifted outward and an increased risk premium was priced into the yield curve.
• Fidelity Total Bond Fund's yield-curve positioning added value versus the benchmark, even as rates rose across the U.S. Treasury yield curve in the first quarter.
• At quarter end, Fidelity Total Bond Fund maintained a duration moderately longer than that of the index and remained overweight in risk assets.

Taxable Bond Market Review

U.S. taxable investment-grade bonds posted a roughly break-even result in the first quarter, as measured by the Bloomberg U.S. Aggregate Bond Index. A positive start to the year was upended in March by a sudden

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