It's a conundrum: bonds aren't likely to win a popularity contest any time soon, but analysts don't expect investor demand will slack off.
"There are two things going on that are offsetting each other. One is that there is quite a lot of concern about what happens to bonds when Federal Reserve starts to raise interest rates; that's behind the lack of enthusiasm," said Richard Jerram, chief economist at Bank of Singapore. "On the flip side, there is still globally a search for yield taking place."
"There's sort of a concern the market is overextended, but also recognition that there's a lot of underlying demand," Jerram said.
Demand is firm
That demand doesn't look like it'll slack off anytime soon. Bond demand is likely to outstrip supply globally by around $450 billion this year on a notional basis, widening from $384 billion last year, JPMorgan said in a note earlier this month.