This is especially a concern for investors in longer term bond funds where small moves in interest rates can create losses for the fund. (learnbonds.com)
Short Term Bond Funds — When bond yields and interest rates rise mid to long term bond fund values tend to initially drop considerably because the bonds these funds are holding have lower yields. (fedretire.net)
But for long term bond fund investors, short term changes in market values don't mean much. (wealthgame.ca)