The article examines how countries with high debt can manage their liabilities by analyzing government debt pricing in financial markets, focusing on Italy. It explores whether using indexed bonds can lower the cost of funding public deficits. The study looks at how investors price treasury securities and measures risk premia due to inflation and real interest rates on different forms of debt. The findings suggest that increasing market depth and liquidity, and avoiding complex financial strategies can reduce debt costs. Additionally, using real indexed bonds can lower debt expenses, but the savings may be underestimated with a simplistic analysis.