ABSTRACT
This chapter deals with the question whether and to what extent particular characteristics of marketable government bonds and notes may be considered as being suitable for broadening the market for government bonds or for maintaining the momentum of sales of such paper during phases of difficult market situations. It examines interest rate features in a more technical sense. The chapter discusses the main technical points which have to be clarified if a debt manager intends to increase his direct recourse to household sector savings. It then deals essentially with the method of selling government securities on a fixed-yield basis during a relatively short subscription period of several days; the debt manager fixes, and announces, the issue yield and often also the intended issue amount. The chapter describes some technical aspects of the role which debt management policy could play in coordination with general conjunctural policy, notably monetary policy.
