Government bond raisings surge

October 2021 – As lockdowns continued over the past 18 months, we have gotten used to announcements of rescue packages in the billions of dollars.

bonds on issue in Australia, source: Reserve Bank of Australia chart pack

The chart above from the Reserve Bank of Australia shows how the government spending is being funded – with the orange spike in 2020-21 indicating how the Federal Government, followed by state governments, is selling bonds to investors so it can fund its COVID relief.

About 51 per cent of this debt is held by offshore investors.