Belgium successfully completes short-term government bond auction, raising nearly 2.9 billions

⑴ On Tuesday, Belgium raised 2.863 billions through a treasury bill auction, which is at the upper-middle end of its target range of 2.6 billions to 3 billions. ⑵ Among them, treasury bills maturing in May 2026 were issued for 1.123 billions, with an average yield of 1.958% and a bid-to-cover ratio of 1.94. ⑶ Treasury bills maturing in February 2027 were issued for 1.74 billions, with an average yield of 2.018% and a bid-to-cover ratio of 1.47. ⑷ The yield on the longer-term (maturing in February 2027) treasury bills is slightly higher than that of the shorter-term (maturing in May 2026) bills, which is in line with the market's conventional pricing for term premium. ⑸ The bid-to-cover ratios for both auctions were above 1, indicating robust market demand and that Belgium's short-term financing channels remain smooth.