More than 700 billion baht of the total will be fresh borrowing to finance the budget deficit, said the people who are not authorised to discuss the information before it’s made public. Roughly 1.7 trillion baht has been earmarked for refinancing and to restructure existing debt, the people added.

About half of the funding sought will be raised through government bond sales, while the rest will be financed via treasury bills, savings bonds, bond switches and promissory notes, according to the people.

Patricia Mongkhonvanit, chief of Thailand’s debt office, didn’t immediately respond to a request for a comment.

Fears of an increase in debt supply have rattled traders in recent weeks, with 10-year yields jumping to the highest since November after the new Thai government announced a raft of stimulus measures.

The concerns come at a bad time for the bond market as a resurgence in inflation in some parts of Asia damps hopes that interest rates have reached a peak.

Thailand’s funding plan for the 2022-23 fiscal year included 1.09 trillion baht of sovereign bonds.

The Public Debt Management Office discussed the borrowing plan with primary dealers and other market participants on Tuesday, the people said.

The government is aiming for a broader and more flexible plan than in previous years, which may fuel concerns about a heavier bond pipeline when new public projects come online, they added.