Swiss Bond Yield Holds After SNB Decision

The yield on the Swiss 10-year government bond held near 0.57%, the highest since the over a year and a half high of 0.613% hit on September 14th, following the Swiss National Bank’s monetary policy decision. The SNB left its key rate unchanged at 0% at its September meeting, citing elevated uncertainty amid persistent tensions in the Middle East that keeps global oil prices elevated. Still, Swiss economic growth was stronger than anticipated, supported by a weaker Swiss franc, while medium-term inflationary pressures increased only slightly, pointing to the limited impact from disruptions to the energy supply chain. Additionally, inflation forecasts were raised slightly to average 0.7% in 2026 and 0.8% in 2027 and 2028, well within the SNB's target, while economic growth is expected to reach between 1.5% and 2% in 2026 and around 1.5% in 2027. Elsewhere, a rebound in global oil prices led to a bond sell-off as expectations of further rate hikes among major economies increased.