FX.co ★ Swiss 10-Year Bond Yield at 3-Week Low

The yield on Switzerland's 10-year government bond remained largely unchanged at 0.16%, hovering near its lowest point since mid-November. This stability persists amid expectations that the Swiss National Bank will not implement any rate cuts in the near future. Inflation in Switzerland registered at 0% in November, falling just below market forecasts of 0.1% and resting at the lower boundary of the SNB's price stability target range of 0%–2%. Analysts predict the central bank will maintain its 0% interest rate during the meeting on December 11 and continuing through to 2026. This approach allows policymakers to await a robust economic recovery and a resurgence in inflation, a stance further reinforced by Switzerland's improved trade agreement with the United States. Recent statements by Chair Martin Schlegel have emphasized that the barrier to reverting to negative rates remains "significant," although the SNB remains prepared to make cuts if necessary. In parallel, diminishing global risk aversion has lessened the demand for safe-haven assets.