Kingdom of Belgium (B335) | News Based Sentiment Analysis

• On August 12, 2025, the Belgian Debt Agency successfully auctioned Treasury certificates totaling EUR 3.202 billion. Specifically, ISIN BE0312803753 (maturing November 13, 2025) saw EUR 1.222 billion taken with a weighted average yield of 1.916% and a bid-to-cover ratio of 2.27, indicating strong demand. This auction suggests continued investor appetite for short-term Belgian debt.
• Following the August 12th Treasury certificate auction, on August 25, 2025, the Belgian Debt Agency auctioned OLOs for a total of EUR 2.723 billion. The OLO 3.00% 22/06/2033 (OLO 97) attracted EUR 1.021 billion with a yield of 2.982% and a bid-to-cover ratio of 1.80, while the OLO 2.85% 22/10/2034 (OLO 100) saw EUR 0.933 billion taken at a yield of 3.177% and a bid-to-cover ratio of 1.58.
• Between August 26, 2025, and September 2, 2025, the Belgian State offered new State Notes through Keytrade Bank. A 1-year note (ISIN BE3871306366) maturing September 4, 2026, carried a coupon of 1.90%, and a 10-year note (ISIN BE3871307372) maturing September 4, 2035, offered a coupon of 3.20%. This provides investors with options across different maturities.
• The auction of ISIN BE0312803753 on August 12th had a particularly strong bid-to-cover ratio of 2.27, suggesting high demand for this specific short-term Treasury certificate. This contrasts with the slightly lower bid-to-cover ratio of 1.57 for ISIN BE0312815872, also auctioned on August 12th.
• OLO 97 (maturing June 22, 2033) and OLO 100 (maturing October 22, 2034), auctioned on August 25th, both saw yields around the 3% mark (2.982% and 3.177% respectively). This indicates a relatively stable yield environment for medium-term Belgian government bonds.

The Investment Story: August and early September saw consistent activity in the Belgian government debt market, with auctions for Treasury certificates and OLOs, alongside the issuance of new State Notes. Demand appears healthy, particularly for shorter-term instruments, with yields remaining relatively stable.

What It Means for Investors: These auctions and issuances provide investors with opportunities to invest in Belgian government debt at varying maturities and yields. The strong demand for certain instruments suggests continued confidence in the Belgian economy and its debt instruments. Investors should consider their risk tolerance and investment horizon when selecting these options.

Looking Ahead: Investors should monitor future auction results and any potential changes in yield curves. Further issuances of State Notes and OLOs will provide additional investment opportunities, and tracking bid-to-cover ratios will be key to gauging investor sentiment.

The Bottom Line: The Belgian government debt market remains active and accessible, offering investors a range of options with stable yields. Continued monitoring of auction results and market conditions is crucial for informed investment decisions.