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Riksbank Faces Bond Shortage in Battle Against Deflation

The headquarters of Sweden's central bank, the Sveriges Riksbank.

Photographer: Casper Hedberg/Bloomberg
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Some of the biggest banks in Scandinavia are warning that Sweden’s Riksbank risks hurting bond market liquidity with its quantitative easing program.

Any efforts to expand asset purchases would deplete Sweden’s already limited sovereign debt supply, according to SEB AB and Danske Bank A/S.