We study the equilibrium effects of financial repression on government funding costs in an endowment economy with limited asset market participation. We show how a broad set of repression policies operates through a wedge in the Euler equation responsive to government size or by affecting fiscal redistribution between agents. Repression intensity is captured by a policy feedback rule that depends positively on net government spending. When fiscal policy is profligate and monetary policy accommodates, we show that such a repression policy raises bond values, reduces the inflationary cost of unfunded fiscal expansions, and lowers bond risk premia. Repression is not a free lunch for bondholders-they pay a lower inflation tax but also earn lower future real returns.