Confidence in Belgian bonds returns

Although interest rates on Belgian state bonds with a duration of ten years have are just 3,076%, the difference with interest rates on German bonds has halved since the Belgian Federal Elections in June.

It appears that investor confidence in Belgian state bonds has returned.

The financial daily ‘De Tijd’ reports that investors are putting their money into “safe” state bonds, despite the relatively low rates of interest.

Bonds expert Michael De Man of the bank KBC explains that investors are playing it safe amid fears of deflation.

"Belgian interest rates have improved more than those in some other countries."

"However this is a correction of the negative movement we saw in June.”

Jean Deboutte of the Belgian Treasury says that this is good news for the battle against public debt.

Mr Deboutte estimates that the federal coffers have received an unexpected boost to the tune of 11.5 billion Euros.

“If this continues, it could lead to extra savings to the tune of tens of millions of Euros.