How High-Debt Countries Try to Control Bond Markets

High-debt governments are increasingly relying on financial tools to manage rising borrowing costs.
One example is the ECB’s Transmission Protection Instrument, or TPI.
The program allows the ECB to purchase bonds from specific euro-area countries if policymakers believe market moves are becoming disorderly or are interfering with monetary policy transmission.
Supporters see it as a way to prevent unjustified fragmentation across eurozone bond markets.
Critics see something else:
A mechanism that lets policymakers push back when investors demand yields they consider too high.
That debate becomes more important as deficits remain elevated and governments issue more debt into markets that are increasingly sensitive to fiscal risk.
Today’s live stream will look at TPI and the other tools high-debt countries can use as fiscal space becomes tighter.
The bigger question is where market pricing ends and financial repression begins.