The RSA bond market- Operation twist in reverse

We question the usefulness of the expensive attempts being made by the RSA Treasury to lengthen the duration of its outstanding bonds. presumably this is being undertaken to avoid the danger of any refinancing problems of the kind faced by European governments. We explain why governments, including the RSA, with a central bank able to monetise government debt cannot face a refinancing problem of the Euro kind. only perhaps an inflation problem. The problem for European governments is that the ECB, because of its consitution is unable to buy the Euro bonds issued by European govwernments – though it is able to accept such bonds as collateral from borrowing member banks. Click here for full report The SA bond market – operation twist in reverse