Belgium borrows for 10 years at the highest rate since 2014: “A return to normal”
Belgium borrowed 3,814 billion euros in the medium and long term on Monday, at interest rates that had not been seen for nearly eight years. According to the Debt Agency, Belgium raised 1.372 billion euros via linear bonds maturing in June 2027, at a rate of 0.864%.
In addition, 1.542 billion was borrowed via a line of 10-year bonds, at an average rate of 1.412%. This is the highest rate since July 2014 (1,547%) that our country has to face to borrow at 10 years.
Finally, Belgium borrowed 0.9 billion euros maturing in 2053 at a rate of 1.912%.
Interest rates have been rising for several months in the wake of tighter monetary policies by central banks in a context of very high inflation. A reality that is therefore not unique to Belgium.
“But rates are still very low, especially when taking into account inflation, the real return is still negative. We’ve had an incredible period of negative rates, so we’re sort of seeing a return to normal , with positive rates again”Jean explains Deboutte, director at the Debt Agency, contacted by the Belga agency.
The director of strategy at the Agence de la Dette does not expect rates to rise sharply again in the coming months, the market having undoubtedly already anticipated several (two or even three) rate hikes from the ECB This year.
On the secondary market, on which investors trade bonds already issued, the Belgian 10-year interest rate had reached its highest level since September 2014 last week.