The yield on the Swiss 10-year government bond fell to the 1% mark, hovering close to levels from early September and tracking the general decline in global bond yields as cooler-than-expected inflation in the United States eased expectations of prolonged rate hikes by the Federal Reserve. Lower pressure to tighten policy is also seen domestically, as inflation eased for a second straight month in October. Consumer prices rose by 3% annually, well below central bank forecasts of 3.4% and retreating further from the 29-year peak of 3.5% hit in August. Still, SNB Chairman Thomas stated that the central bank should continue to tighten policy as medium-term inflation risks persist. The SNB hiked its key rate by 75bps to 0.5% in its September meeting, lifting interest rates out of the negative territory for the first time since 2011.
Historically, the Switzerland Government Bond 10Y reached an all time high of 5.63 in September of 1994. Switzerland Government Bond 10Y - data, forecasts, historical chart - was last updated on November of 2022.
The Switzerland Government Bond 10Y is expected to trade at 1.23 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.63 in 12 months time.