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All the world loves bonds, but maybe for the wrong reason

Sovereign bonds are pricier than ever, yet the world can't seem to get enough.

The rush into bonds has been due to a number of factors, including worries about global economic growth and most recently fears the U.K. could disrupt financial markets and the economy if it votes next week to leave the European Union. But the overriding forces behind the buying are the world's central banks as well as the unease caused by the world's central banks.

"The central banks are Hoovering up all of these bonds. But yet it hasn't promoted growth or inflation," said George Goncalves, head of rates strategy at Nomura. "Maybe these policies are not effective. That new theme, which has been growing throughout 2016, is: 'Those guys can't generate growth and help the world economy. I have to buy bonds.'"