Belgian 10-year Borrowing Costs Hit Highest Level Since 2011
UrduPoint (October 27, 2026)
Belgium borrowed €2.8 billion from financial markets on Monday, including €1.3 billion in 10-year debt at an average interest rate of 4.41 percent, its highest rate for that maturity since November 2011, according to the Federal Debt Agency.
Rising borrowing costs have been a significant concern in Belgium, with 10-year yields exceeding 4 percent in September. This is due to market expectations of higher central bank interest rates to combat inflation driven by rising energy costs.
Competition for government borrowing funds also comes from US technology companies raising substantial capital for AI infrastructure, including data centers.
Higher interest rates increase debt-servicing costs and impact household borrowing, such as mortgages. Rising borrowing costs have accelerated the debt snowball effect in Belgium to 2029, from a projected 2031.
The borrowing also included bonds maturing in 2033 and 2040, with €897 million raised from bonds due in 2033 at an average yield of 4.06 percent and €610 million from bonds maturing in 2040 at an average yield of 4.74 percent.