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.

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.