At the end of July, 58 percent of Swedish liabilities in debt securities was denominated in Swedish kronor, while 42 percent was in foreign currency, in particular US dollars and euros. Since a large part of the liabilities in debt securities is denominated in foreign currency, exchange rate changes may have a large impact. In July, liabilities in Swedish kronor increased by SEK 34 billion, while liabilities in foreign currency decreased by SEK 39 billion, about evenly distributed between US dollars and euros. However, this was completely due to exchange rate changes, for the US dollar in particular, although the euro also weakened against the Swedish krona.

The State continues to increase borrowing in debt securities

In July, the bank sector, which has a majority of its liabilities in foreign currency, decreased liabilities in debt securities by SEK 27 billion. Also the other monetary financial institutions sector, which has just over half of its liabilities in foreign currency, decreased liabilities by SEK 12 billion. This was offset by the central government sector’s liabilities in debt securities continued increase by SEK 25 billion in July. The housing sector and the non-financial and other financial corporations sector also increased liabilities in debt securities during the month, by SEK 6 billion and SEK 4 billion respectively.

Liabilities in bonds decreased

At the end of July, bonds accounted for 86 percent and money market instruments accounted for 14 percent of total liabilities in debt securities. During the month, debt securities liabilities in bonds decreased by SEK 38 billion, while liabilities in money market instruments increased by SEK 33 billion.

The annual growth rate for total liabilities in debt securities was 2.8 percent, which is a decrease of 1.4 percentage points from June.

Maturity structure

Debt securities amounting to SEK 1 573 billion, corresponding to one-fifth of the total outstanding debt securities stock, will reach maturity within six months. Among this maturity value, 45 percent, that is, SEK 709 billion, is denominated in foreign currency, mainly in US dollars and euros.

The bank sector and the other monetary financial institutions sector together account for just over 60 percent of debt securities borrowing that reaches maturity within six months.

2020-09-16 at 9:30