The Belgian interest rate for 10-year bonds climbed to over 1% on Thursday. It had reached 0.33% last April 15th. The 10-year rate increased by 17 basis points, to 1.05%, on Thursday morning. In just a few weeks the Belgian 10-year interest rate tripled. It had been below 1% since November 2014.
An adjustment was to be expected following the extremely low levels reached in the past few months, but according to Edwin De Boeck, KBC chief economist, this movement is unreasonable. He had been expecting this sort of level within the coming year. The economist highlights the great instability of current markets, which “are trying to stabilise.”
According to Edwin De Boeck, increasing oil prices and diminishing fears of deflation can explain this rate increase. Several European states have experienced rising rates, such as Germany where the 10-year rate is currently at 0.7%.