Last week this key interest rate nearly reached 6%, but already on Monday Belgium's long-term interest rate fell by 0.3%. On Tuesday a further 0.2% fall followed. The money markets are thus giving a positive response to the budget agreement reached by the six parties forming the new Belgian Government at the weekend.
Belgium's latest state bond, a financial product also aimed at small investors, is doing well too. Some 2 billion euros has already been raised. Investors have until 2 December to register. The 5-year bond that has a 4% yield before tax is popular, but analysts have pointed out that given the recent hike in Belgian interest rates a higher yield can be obtained by purchasing a similar product on the secondary market.