The complex interactions between public debt management, fiscal and monetary policy, geopolitical tensions and the additional borrowing needs created by the transition to a greener economy, have further complicated the landscape for public debt management. Governments must navigate these challenges ensuring that their debt strategies are resilient and adaptable to changing circumstances. Effective public debt management can help mitigate the risks posed by these uncertainties, allowing countries to maintain fiscal discipline while supporting their economies and long-term development goals.

The OECD monitors trends and developments in sovereign borrowing requirements, debt levels and government securities markets. OECD analysis and recommendations aim to assist policy makers in designing and implementing appropriate policies.

As the issuers in sovereign bond markets, public debt managers have a vital role in supporting liquidity and acting in a transparent and programmatic  way to help avoid excessive price volatility. Not only are sovereign bonds  an important asset class for a broad range of investors and are widely traded and serve as collateral for a range of lending activities, they have also in recent times become an important asset in the implementation of monetary policy. Large Quantitative Easing (QE) programmes post financial crisis and in response to the Covid-19 pandemic saw central banks become huge buyers of government debt. Central banks are now withdrawing from these markets through Quantitative Tightening (QT) to help tackle inflation, leading to an increase in the net supply of sovereign bonds and the emergence of more price sensitive investors. Still, good levels of liquidity and price stability in these markets are essential for wider financial stability.

The OECD works closely with public debt managers, central banks, regulators and other market participants to monitor the impacts of these developments. We also promote the role of debt managers as market participants who have a responsibility to support liquidity and stability in these markets  not just in their own interest but also for the wider economic interest.