Via Vimal Gor at Pendal:
Everything (yes, everything) has a price, and in most cases higher prices drive down demand. But in rare cases when the thing in question satisfies a basic need and there are limited alternatives, higher prices can actually attract greater demand.
Economists call these things Giffen goods, and government bonds are rapidly falling into this category…In a low-yield, low-return world, it’s easy to argue a case for high quality government bonds to become Giffen goods, where investors’ desire to hold them will only grow as they become more expensive.
