Sweden's Shift in Inflation-Linked Bonds Strategy

Sweden's debt office plans to reduce its outstanding inflation-linked bonds, citing no clear cost benefits over nominal bonds. The goal is to bring the inflation-linked bond debt down to 80 billion Swedish crowns by the end of 2029. This move reflects strategic financial adjustments.


Devdiscourse News Desk | Updated: 07-11-2024 17:47 IST | Created: 07-11-2024 17:47 IST
Sweden's Shift in Inflation-Linked Bonds Strategy

Sweden is set to continue the issuance of inflation-linked bonds while gradually reducing their outstanding amounts, according to a statement from the country's debt office on Thursday.

The decision stems from the absence of a significant cost advantage for real borrowing compared to nominal bonds. Consequently, the outstanding amount of inflation-linked bonds will see a gradual decline.

The debt office aims to adjust its inflation-linked bond debt to approximately 80 billion Swedish crowns by 2029. This strategic move indicates an adaptation to prevailing financial conditions.

(With inputs from agencies.)

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