FX.co ★ Swiss 10-Year Bond Yield at 2022-Lows

The yield on the Swiss 10-year government bond remained steady at approximately 0.12%, not far from its lowest point since January 2022. This trend reflects a growing demand for safe-haven assets, largely as a result of a prevalent risk-averse sentiment among investors. Factors contributing to this sentiment include concerns over the protracted US government shutdown, mixed messages from Federal Reserve officials, ongoing geopolitical uncertainties, and inflated valuations in the AI sector. Additional anxiety was sparked when leading CEOs from major Wall Street banks issued warnings about potential market corrections. Domestically, Switzerland saw softer-than-anticipated inflation data, which has increased pressure on the Swiss National Bank (SNB) to cut interest rates below the current 0% mark. Nonetheless, SNB officials, Tschudin and Schlegel, have indicated a cautious approach, asserting that the current policy rates remain suitable. The central bank is largely expected to uphold its policy stance in its forthcoming meeting on December 11.