"I never invest in fixed income"

All I can say is you are doing the right thing SFI...and don't ever change that rule !!

Here's a rough analogy;your comment (though technically correct) is like saying "you only take a loss (in equity) when you sell it"...
As though the paper loss is irrelevant in the meantime.

Another (hypothetical) analogy to attempt to set you right;
Lets suppose we could somehow (physically) "track" actual individual bond certificates...
99% of them would be moving around...all the time.
(this is trading)
Sure someones mom has some in a basket somewhere...and clips the coupons down at the bank every 6 months...
this is Not "the bond market"

You are well out of it :)

PS

". Every trader sold all of their bonds. To whom?|"

 the traders sold the bonds to other (more) anxious people who accepted (paid $ for) a slightly higher yield.
The (more optimistic) bond trader  took the cash (sold the bond) and bought some....gold,or equity...ENB maybe ???