Bonds typically don't grab as many headlines as stocks do, but the recent rally that sent yields to four-decade lows pushed the fixed-income market to the front of investors' minds. And the bond market certainly has been garnering investors' dollars. In the first quarter of 2003, bond funds took in a record $43.5 billion, while equity funds saw a $5.9 billion outflow. Just last week bond funds took in another $1.7 billion. On Tuesday, a rumor that the Federal Reserve might make a rate cut prior to its next scheduled meeting on June 24 sparked another rally, pushing the yield on the 10-year note down to 3.41% and the five-year down to 2.35%. Even with the recent rally in stocks, bonds have provided better returns for the past one- to three-year period. But since yields can only go to zero, we are truly nearing a point of diminishing returns and increasing risk, which has many investors looking for ways to protect or profit from a rise in interest rates.