When a sovereign government issues debt it logically

increases the assets that are held by the non-government sector $-for-$.
has no impact on the overall holdings of assets held by the non-government sector $-for-$
reduces the capacity of the private sector to borrow from banks because they use their deposits to buy the bonds.

Answer: has no impact on the overall holdings of assets held by the non-government sector $-for-$

For more information please read - Functional finance and modern monetary theory - or post a comment.