Above is the link to an article in the WSJ this morning about how to play the bond market now that interest rates are at extreme lows. With rates this low we know two things---1. At some point they will go up, 2. You can't earn much interest in bonds at these rates.
The article presents a number of the old standby ideas---diversification, higher yielding bonds, and emerging market bonds. The real answer of course is to take a tactical approach to bonds. Be in the sectors of the bond market that are in an uptrend and be out of the ones in a downtrend.