Citi Research interest rate strategist Aman Bansal noted in a report that Belgium has yet to submit its budget draft to the European Commission, exposing the country to budgetary risks. "Given the absence of visible agreements, even if this is merely a negotiation tactic, it heightens short-term political risks," he stated.

Bansal highlighted that under these circumstances, Belgian government bonds (OLOs) face dual challenges—short-term political risks and medium-term fiscal risks. However, Belgium has already completed its primary bond issuance plan for 2025, with only a small optional reverse inquiry auction remaining. "This progress may help OLOs navigate the current period of political uncertainty," he added.

According to Tradeweb data, the yield on 10-year OLOs rose slightly by 0.9 basis points to 3.175%.