Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229051
Authors: 
Wolswijk, Guido Franciscus Theodorus
Year of Publication: 
2020
Series/Report no.: 
ECB Working Paper No. 2437
Abstract: 
This study analyses the choice of government debt managers in the euro area between issuing short-term or long-term debt over the period 1992-2017. Debt managers increased short-term debt issuance in response to higher interest rate spreads and to rising government debt, notably in vulnerable, high-debt countries. Thus, lower longterm rates as a result of ECB's Quantitative Easing (QE) triggered debt managers to focus debt issuance on the long-term end. Moreover, the usual increase in debt maturity when debt rises ceases to operate when QE is active, possibly because markets perceived it as a backstop to the government bond market. However, limited QE experience calls for caution in interpreting the results.
Subjects: 
debt maturity
Quantitative Easing
debt management
reaction function
JEL: 
H63
G12
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4080-1
Document Type: 
Working Paper

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