Swiss 10-Year Bond Yield at 3-Week Low

2025-09-04 08:54 By Luisa Carvalho 1 min. read

The yield on the 10-year Swiss government bond hovered around 0.29%, its lowest level since mid-August, following the trend of major global peers amid easing bond market pressures.

This comes after a recent sharp sell-off in global bonds, driven by rising debt concerns, inflation worries and mounting political pressure on central banks.

Traders at home assessed the latest inflation data, seeking clues on the Swiss National Bank’s forthcoming actions.

Swiss inflation stood at 0.2% in August, unchanged from July, aligning with the Swiss National Bank's target of 0%-2%.

This reinforced speculation that the Swiss National Bank (SNB) will maintain its interest rate at zero later this month and possibly over several more quarters, notwithstanding ongoing economic risks posed by US tariffs.

Slowing but moderate growth currently suggests no immediate need for rate cuts.

However, the economy, which grew 1.2% yoy and 0.1% qoq in Q2, faces potential strain from the recent 39% US tariffs.



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