Exclusive: Swedish DMO Head of Funding: Will Deliver Two New 10-Year Bonds in 2026

3 June 2025

By Marta Vilar – MADRID (Econostream) – Sweden will deliver two new 10-year bonds in 2026, according to Johan Bergström, Head of Funding of the Swedish National Debt Office (Riksgälden).

In an interview with Econostream on May 26 (transcript here) Bergström said, ‘Next year we will introduce one 10-year bond via syndication during the first quarter and another one after the summer, which will be a 10- or 11-year bond.’

With respect to 2025, the Riksgälden will deliver the main part of its issuances in the 10-year sector, he said.

‘Then in the 5-year and some in the 2-year sectors, and then we have a certain amount that we can choose of the old on-the-run bonds’, he added. ‘For the remaining part of the year, the issuances will be concentrated in the 10-year sector.’

The Riksgälden would issue a new 2036 bond on June 4, he said, which will become the 10-year benchmark in the upcoming months.

Apart from this 2036 bond and the foreign currency bond expected for later this year, the Swedish NDO would not issue any new bonds in 2025, according to Bergström.

‘We have also indicated that we will tap one of the two longer bonds in the coming months or after the summer’, he said. ‘Last week we tapped the 2071 bond and later this year we will tap the 2045 bond, but the size of it will be smaller.’

Asked about issuing SEK-denominated bonds via syndication, which is usually reserved for foreign currency bonds, Bergström said this would likely happen in Q1 2026.

The foreign currency bond issuance planned for 2025 could likely stay within the 2- and 5-year sector, he said.

‘Increased funding needs could suggest that we need to go ahead with a slightly longer tenor, which for us would be the 5-year, but we’ll see when it is time’, he added.

Regarding which foreign currency will most likely be chosen for this transaction, Bergström said the Riksgälden was ‘mainly considering euros or USD.’

There was no need to close the inflation-linked bond programme as other peers have done, he said, but these would be reduced.

‘Therefore, we decided we will reduce it and once we get to the forecasted level of SEK80 billion outstanding, we’ll do another analysis and see if it’s worth it or not’, he said.

Asked if they would return to retail issuance in the event of defence-related borrowing, Bergström said they do not ‘pinpoint any funding to a certain expenditure.’

Reopening the retail programme for that was not completely off the table but it now seemed unlikely, he said.