FX.co ★ Swiss 10-Year Bond Yield Holds Around 2-Month High

The yield on the Swiss 10-year government bond held steady at 0.28%, maintaining its position near the highest level since October 8. This stability comes as investors evaluate the Swiss National Bank's latest policy decision. As anticipated, the central bank left its policy rate unchanged at 0% after pausing in September following six consecutive rate cuts. The SNB noted that recent inflation figures were slightly below expectations, but emphasized its focus on a largely unchanged medium-term outlook. Inflation is projected to increase modestly in the upcoming quarters. Additionally, the economic forecast has slightly improved, particularly following the Swiss government's successful renegotiation of a trade agreement with the United States. SNB Chairman Martin Schlegel reaffirmed that the threshold for implementing negative rates is now higher, though the bank remains prepared to deploy them if necessary. Meanwhile, the US Federal Reserve executed a widely anticipated rate cut and indicated that it might keep rates stable in the near term.