Migration-Fueled Swedish Bond Blowout Reverses Amid Supply Balm

  • Biggest banks see debt office lowering borrowing forecast
  • Yield spreads versus Germany narrow after December widening
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Concerns the record influx of refugees would blow a hole in the Swedish budget may have been exaggerated.

Sweden’s biggest banks predict the debt office will on Wednesday lower its borrowing forecasts for this year and 2017 as a surging economy spurs rising tax income.