FX.co ★ Swiss 10-Year Bond Yield at Near 1-Week High

The yield on the Swiss 10-year government bond saw a slight increase, reaching approximately 0.30%, marking its highest level in close to a week. This movement comes amid ongoing geopolitical tensions that have sustained demand for safe-haven assets while investors continue to assess future policy directions. In December 2025, the Swiss Consumer Price Index (CPI) saw a modest rise of 0.1% compared to the previous year, representing the first increase since July, albeit remaining at the lower end of the Swiss National Bank's (SNB) target range of 0–2%. This situation has reinforced the expectation that the SNB will maintain interest rates at 0% in their forthcoming meetings, as inflation is anticipated to increase gradually in tandem with economic recovery. During the SNB's December session, the minutes revealed that policymakers felt little urgency to modify the existing policy. The key rate was kept steady at 0%, with officials noting that neither tightening nor additional easing would be suitable at present. They emphasized the anticipated gradual rise in inflation over the coming months, the enhanced economic outlook due to reduced US tariffs, and the potential risks to the financial system associated with reducing rates below zero.