"The reality is, long-term bonds match up well with a retiree or foundation’s liabilities (i.e., future spending needs). They move in lockstep. But it’s important to note that the counterbalance that bonds provide is not as reliable and impactful as it used to be. Previously, when stock markets were taking a hit, bonds went up automatically (i.e., yields dropped). But in August, when volatility jumped and stock markets were down 4 per cent, Government of Canada bonds also had a negative return (minus 1 per cent)."
Link - Steadyhand funds