Cranking up inflation supply

Issuance assured

philippe-mills

Agence France Trésor (AFT) has been winning plaudits from inflation dealers for its response to the financial crisis. In the months following the collapse of Lehman Brothers in September 2008, the French public debt management agency slashed its inflation issuance as investors vanished. But despite the pull-back, it continued to maintain regular auctions - something bankers say helped prevent a supply crisis in the inflation market.

The AFT was quick to take action following Lehman's demise

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