Swiss Bond Yield Rebounds
The yield on the Swiss 10-year government bond rose above 0.55% after reaching its lowest level in over two weeks, as global oil prices rebounded, raising concerns over prolonged inflationary pressures. On the monetary policy front, the Swiss National Bank is set to announce its policy rate decision on Thursday and is widely expected to leave the rate unchanged at 0%. A Swiss Bankers Association survey showed that all respondents expect the SNB to keep its policy rate at 0% through the end of the year. Markets are pricing in the first rate hike for June 2027, while most economists expect the first increase in early 2028. Meanwhile, the State Secretariat for Economic Affairs raised its forecast for economic growth in 2026 to 1.7%, as the impact of higher energy prices remains limited, up from its June projection of 0.9% and broadly in line with the OECD’s latest forecast of 2%.
55% after reaching its lowest level in over two weeks, as global oil prices rebounded, raising concerns over prolonged inflationary pressures. On the monetary policy front, the Swiss National Bank is set to announce its policy rate decision on Thursday and is widely expected to leave the rate unchanged at 0%. A Swiss Bankers Association survey showed that all respondents expect the SNB to keep its policy rate at 0% through the end of the year. Markets are pricing in the first rate hike for June 2027, while most economists expect the first increase in early 2028.
9% and broadly in line with the OECD’s latest forecast of 2%.