'It’s extremely difficult to know when inflation has peaked,' says Matthew Diczok, fixed income strategist, Chief Investment Office, Merrill and Bank of America Private Bank. To fight inflation, the Fed is not only rapidly hiking interest rates but also doing what is called quantitative tightening — no longer buying government bonds and letting those it already owns mature. 'Those measures are likely to succeed in bringing down inflation,' says Diczok. But, he adds, during the past two periods of high inflation, post-World War II and during the 1970s, inflation spiked three times before it finally kept falling. 'Even if we can’t say for sure that inflation has peaked, we do know that today’s bond yields are higher than they have been in a long time,' says Diczok, noting that the income bonds provide can play an important role in diversifying your portfolio. Even though short-term bonds currently pay higher rates than longer-term bonds, Diczok suggests investors consider longer-term maturities. 'If you invest in a 10-year bond now, even at a lower current yield, you lock in that rate for a much longer time,' he adds.