Morningstar: Five to ten year bonds are considered the best choice.

Morningstar stated in a outlook report that mid-term bonds - bonds with a maturity of five to ten years - seem to be the best choice. "These bonds provide a yield comparable to cash rates, benefit from capital appreciation as the yield curve moves down as the maturity approaches, and also have the potential to further benefit if the central bank starts lowering interest rates," Morningstar said. The institution stated that in evaluating fixed income investment opportunities, it is important to consider not only the yield, but also how time affects the value of the bond.