Brussels:Belgium borrowed £2.8 billion from the financial markets on Monday, including £1.3 billion in 10-year debt at an average interest rate of 4.41 percent, marking the highest rate for that maturity since November 2011.

According to Wam, Belgium's borrowing costs have been rising sharply in recent months, with 10-year yields exceeding 4 percent in September. This increase comes amid market expectations of higher central bank interest rates aimed at curbing inflation driven by rising energy costs.

The Belgian government's borrowing is also facing competition from U.S. technology companies raising substantial funds to finance artificial intelligence infrastructure, including data centers. Additionally, higher interest rates are increasing government debt-servicing costs and affecting household borrowing, including mortgages.

Rising borrowing costs have accelerated the risk of a debt snowball effect in Belgium, bringing forward the risk from 2031 to 2029. The borrowing also included bonds maturing in 2033 and 2040. Belgium raised £897 million from bonds due in 2033 at an average yield of 4.06 percent, and £610 million from bonds maturing in 2040 at an average yield of 4.74 percent.