Swiss 10-Year Yield Hits 7-Month High as Inflation Risks Rise
2026-03-06 14:55
By
Joana Ferreira
1 min. read
Switzerland’s 10-year government bond yield climbed to 0.4%, its highest level since late July and on track for a 19 bps weekly increase, as investors weighed rising inflation risks linked to the escalating Middle East conflict.
Heightened tensions have fueled concerns over potential disruptions to global oil supplies, pushing energy prices higher and prompting traders to scale back expectations for further Swiss National Bank rate cuts.
At the same time, policymakers remain wary of renewed Swiss franc strength amid safe-haven inflows.
SNB Vice-President Antoine Martin reiterated the central bank’s readiness to intervene in currency markets to curb excessive appreciation, citing an increasingly complex geopolitical environment.
On the data front, Swiss inflation held at 0.1% in February for a third straight month, slightly above forecasts of a 0.1% decline but still at the lower bound of the SNB’s 0–2% target range.