In 2023, short-term U.S. government bonds are preferred over long-term ones due to an unusual inverted yield curve and the Federal Reserve's plan for higher interest rates. Global investors are drawn to short-term bonds for their higher yields and liquidity. Investments in short and medium-term Treasury bond funds have surged by 70.3% to $29.3 billion this year, while longer-term bond funds saw an 11.5% decline to $36.9 billion. Matt Dmytryszyn, Chief Investment Officer, discusses the value of long-term bonds in securing current interest rates and providing protection against potential future rate drops.