Here’s a chart to ponder as talk of rate rises — in both Europe and the US — returns:
It’s short-term debt issuance as a proportion of total debt issuance for a few eurozone countries. It’s also taken from a December working paper by De Nederlandsche Bank on the interaction between public debt managers’ behaviour and monetary policy.
Unsurprisingly the two seem to have become more and more entwined recently.
Can you say, interest rate shock?
(H/T Achim Dübel)
Related links:
How to think about a sovereign debt crisis - FT Alphaville
That European funding problem, charted – FT Alphaville
The sovereign debt premium – FT Alphaville
Carrying on in Spain – FT Alphaville