Sometimes I read in news articles, that a central bank can't hike the interest rates much higher, because then the government would be unable to pay the interest rate burden of it's government debt. Is this really true? In my understanding this should only be true for government debt that will be issued after the interest rates are already high.
I mean, the biggest part of government debt that has been already issued is only traded at the secondary markt at a fixed nominal interest rate. (except of an usually much smaller part of floating rate notes)