Whether it was regarding U.S. Treasurys or municipal bonds, the predictions for 2011 were off, according to an article on Barron’s.

Municipal bonds were projected to experience hundreds of billions of dollars in defaults, yet they became one of the best-performing classes of domestic securities, the Barron’s story said.

The article highlighted the iShares S&P National AMT-Free Municipal Bond Fund (NYSEArca: MUB), as it returned 10.2 percent for the year.

After a year of rising bond prices and falling yields, U.S. Treasury yields have “nowhere to go but up,” according to the article.

They fell steeply in 2011, ironically after the United States lost its “AAA” credit rating, as investors flocked to Treasurys in fear.

Head over to Barrons.com for the full story.