2024-09-04 04:00:00
The interest rates on government bonds are published by the Federal Debt Office. The subscription period will start on Thursday, September 5 and last for 8 days. However, these seem less attractive to investors.
The federal debt agency announced Tuesday that the gross coupon rate on the one-year government bond to be issued on September 16 will be 2.75%. Taking into account the applicable 30% withholding tax, the net interest rate is only 1.925%.
The 10-year government bond will also be issued on September 16, with a coupon rate of 2.80% and a net interest rate of 1.96%.
Just a reminder, “When you invest in government bonds, you are investing in government debt, whereas when you invest through a bank, you are investing in the bank.”, explains Charlotte Montpellier, economist at ING.
The subscription period will run from Thursday 5 September to Friday 13 September and will continue until 12 September for those who receive funds directly through the debt agency’s ledger department (no later than 13 September).
These are great solutions if you want to invest in the short term
Not as attractive as last year
Charlotte de Montpellier, an economist at ING, said such national bonds were less attractive to investors.When the government decided to cut taxes last year it was very aggressive, which made it very attractive, much more so than other”, affirming the latter.
“This year, the situation is different: the state vouchers are the same as other solutions. We see that the Belgian state and debt institutions have not yet decided to strike hard and fast in terms of interest rates. The published interest rate for one year is 2.75. In the market, most fixed-term accounts have higher interest rates. Therefore, we can assume that the state is not willing to recover all the money invested, but only a small part.“, she added.
Overall, the national debt remainsThis is a good solution if you want to invest in the short term. On the other hand, if your investment horizon is longer, it is worth considering other solutions that are easier to beat inflation.“, she concluded.
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