Australia faced the same issue over the period 2006-2009 when the national debt became a surplus. The bond market didn't implode as this article would predict.

Australia faced the same issue over the period 2006-2009 when the national debt became a surplus. The bond market didn't implode as this article would predict. Rather the govt simply continued to issued bonds and bought other assets to keep the market alive. The bond market actually did very well - in 1998 there was approx $167BB of govt debt issued while in 2008 there was $480BB. http://www.brr.com.au/event/43083/recent-developments-in-the-australian-bond-market-guy-debelle-rba-assistant-governor-financial-markets http://www.brr.com.au/event/43083/recent-developments-in-the... for a boring speech about it by the RBA governor