Government bonds could suffer a particularly steep fall because of the actions of the Federal Reserve, warns Howard Greene, portfolio manager of John Hancock Bond ( JHNBX). Under its quantitative easing programs, the Fed has been buying billions of dollars worth of Treasuries and government-backed mortgage securities each month. That has temporarily propped up prices of government issues. "As long as the Fed keeps buying a lot of the new issues, the bond benchmark may be able to hold up," Greene says. "But after a while, the buying will stop, and the game will be over." Investors are not being compensated for the risk of Treasuries, portfolio managers argue. The Treasuries in the Barclays benchmark yield a puny 0.90%. Overall the Vanguard fund yields 2.6%. To get a higher yield and more protection from a decline in Treasuries, consider an actively managed fund with a big stake in corporates and a long track record for outdoing the benchmark. Top choices include Janus Flexible Bond ( JANFX), John Hancock Bond, and MFS Bond ( MFBFX). Holding 89% of its assets in corporate bonds, MFS Bond yields 4.2%. During the past five years, the fund returned 8.4% annually, outdoing 95% of intermediate funds.