From IR+M: Treasury rates are on the rise. .. Higher yields are associated with negative fixed income returns. However, investors have experienced periods of rising rates before, and despite higher yields, total returns were positive throughout or shortly after rates stabilized. This was the case during rising rate environments such as 2003-2006, 2008-2010, 2012-2013 and 2016-2018.Although the mark-to-market value of a fixed income portfolio may fall, this can be offset by increasing income from higher reinvestment rates. For those investors with a long-term investment horizon, income return will eclipse price return.
Full details: Income Return eclipses Price Return