Clarification on inflation-linked bonds

News 24 November 2023

The role that inflation-linked bonds have in central government borrowing is a current issue in several countries, most recently Germany. Therefore, the Swedish National Debt Office would like to clarify our present position regarding the share of inflation-linked bonds in Sweden’s central government debt and the ongoing analysis.

• The Government has decided that the target value for the share of inflation-linked debt is to remain at 20 per cent during 2024, in accordance with the Debt Office’s proposal. 
  The Government’s adopted guidelines
• At the same time, we have stated that we will continue to analyse the issue of how the central government debt should be composed thereafter, based on the conditions we foresee ahead and a more comprehensive analytical basis. 
  The Debt Office’s proposed guidelines
• The analytical work is underway, and we intend to present the conclusions as a whole in the forthcoming proposed guidelines (which will be submitted to the Government at the end of September 2024). The Government will then decide on the guidelines by 15 November.
• The Debt Office is of course also monitoring what other countries are doing and has ascertained that the conclusions about the role of inflation-linked bonds in the borrowing vary. We must analyse the issue on the basis of several aspects and the conditions that are specific to Sweden.