The anticipation of higher rates is already priced into the Treasury market, says Kim Miller, portfolio manager for the Fidelity Conservative Income Bond Fund. The tepid response of Treasuries to recent Fed statements compared to the serious jump in rates after Ben Bernanke's speech last May suggests to Miller that rates do not need to rise materially from here. Miller says investors can reap higher yields with less interest rate risk and volatility in high quality short term corporate bonds.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

More from Bond Funds

Don't Get Burned by the 10-Year Treasury Yield: June Trading Strategies

Don't Get Burned by the 10-Year Treasury Yield: June Trading Strategies

How Target-Date Funds Could Fit Into Your Investing Plan

How Target-Date Funds Could Fit Into Your Investing Plan

What Do Trade Wars Mean for High Yield Bond Investors?

What Do Trade Wars Mean for High Yield Bond Investors?

U.S. Economy Added 103,000 Jobs in March, Missing Projections

U.S. Economy Added 103,000 Jobs in March, Missing Projections

U.S. Economy Seen Adding Jobs at 'Goldilocks' Pace For Stock Investors

U.S. Economy Seen Adding Jobs at 'Goldilocks' Pace For Stock Investors