Swiss 10-Year Government Bond Yield Higher

The yield on the 10-year Swiss government bond was around 0.68%, holding close to its highest since early July.

Optimism about Europe’s growth prospects, fueled by Germany and the EU’s pledges to increase defense and infrastructure spending, outweighed concerns over the potential impact of Trump’s tariffs on global growth.

Meanwhile, consumer price inflation in Switzerland eased slightly to 0.3% in February, its lowest level since April 2021, down from 0.4% in January.

Meanwhile, the Swiss economy grew by 0.2% in Q4 2024, down from 0.4% in Q3, marking the slowest expansion since Q2 2023.

These factors supported speculation of further rate cuts by the Swiss National Bank, with markets anticipating one this month and possibly another in June.