[header] How to use the barbell strategy to diversify bond investments [title] Realize that you have options when it comes to investing in the bond market. [step] Many people think that all bonds are basically the same and therefore diversification is not as important as with stocks. Nothing could be further from the truth. 
There is a wide variety of bonds, ranging from government t-bills to municipal (muni), corporate or even zero-coupon bonds. You will want to diversify by investing in each of these categories as well as within any single bond type.