Massive bond issues may create surplus

The financing of many government support packages may lead to a surplus of bonds, which can cause interest rate fluctuations.

Photo: Stine Bidstrup/ERH

Countries around the world are currently fighting to support their economies by creating large support packages. However, the large-scale government bond issues that will come in the wake of the support packages may impact interest rates, writes Finans.

The markets may struggle to absorb the new bonds, which are all being launched at a similar time, says Lars Skovgaard Andersen, investment strategist at Danske Bank.

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