Borrowed time: The disadvantages of long-term bonds

2 Mar 21

Chancellor Rishi Sunak this week said a one percentage point rise in interest rates would add £25bn a year to the government’s debt servicing costs. So why isn’t the Treasury relieving the pressure by issuing Covid-19-related debt at longer durations? Former Commerzbank chief economist Peter Dixon looks at the drawbacks of longer-term debt.

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