Bonds are due to rally in August. : Over the past 3 months, investors have sent a record amount into bond funds, nearly a quarter of a  trillion dollars. The August note rally has likely begun. There are 3 reasons to expect a rally now: The monthly histogram below depicts the August strength. Bonds have been up 73.7% of the time for an average gain of 0.91% and an expected return of 0.67%. These numbers are the highest of any of the 12 months. The monthly cycle bottomed on the 31st.