Just like the stock mkt., the bond mkt. is diversified so if you can't make money on bonds from one country, you make it from another.
Unfortunately, with the Fed. constantly keeping our rates from 0 -.25%, uncertainty about what congress is going to do, the bond investors don't want to take any chances investing in the wrong place. Remember the bond holders that didn't get their money from GM when the Gov. took over?
Over Europe Greece doesn't have money, Europe is now saying Italy may not get the money that was promised, and Spain is now complaining they need money. Now China is warning they may not invest in Euro bonds anymore.
Analysts are predicting China will be next because exports to both Europe and U.S. are falling.
The money in this fund was made for year 2011 after last year's cap gain distribution. If you are like me you should be in the fund primarily for the monthly dividend not because PTTRX is the hottest stock on the market this week.
I am quite happy to take my $14,000 monthly dividend and even if the dividend gets down to $10,000 a month I will still be quite happy. My bills are all paid off thanks to Bill and I am fortunate enough to have been in PTTRX long enough to have reinvested my dividends to the point that the monthly dividend is 30% more than what it was when I made my first rollover.
If you want to speculate rather than invest this fund is not for you. Take your money elsewhere.