Belgium borrowed €2.8 billion from the financial markets on Monday, including €1.3 billion in 10-year debt at an average interest rate of 4.41%, its highest rate for that maturity since November 2011.
The figures were published by the Federal Debt Agency and reported by L’Echo.
Belgium’s borrowing costs have been rising sharply in recent months, surpassing 4% in September. Interest rates have been climbing as financial markets anticipate central banks will raise rates to control inflation driven by energy costs linked to the war in Iran.
Governments are also competing in the debt market with US tech firms borrowing large sums for new AI capital investment, such as data centres.
Higher interest rates are affecting not only government borrowing and long-term debt costs, but also household borrowing costs such as mortgages.
Rising borrowing costs have also brought the risk of an interest-driven debt “snowball” in Belgium forward to 2029, rather than 2031, according to a recent warning to senior federal ministers.
The Belgian state also issued debt maturing in 2033 and 2040 on Monday. Bonds due in 2033 raised €897 million at an average interest rate of 4.06%.
Debt securities maturing in 2040 brought in €610 million for the state at an average interest rate of 4.74%.
