Swiss 10-Year Bond Yield Steady After SNB Decision

2026-03-19 11:14 By Luisa Carvalho 1 min. read

Switzerland’s 10-year government bond yield held almost steady around 0.35%, as investors weighed safe-haven demand from escalating Middle East tensions and expectations of a steady monetary policy in 2026.

The Swiss central bank held its key rate at 0% for a third meeting and reiterated potential intervention to limit the franc’s appreciation, seeking to manage the risk of deflation amid persistently low inflation and a strong currency.

Inflation remained at 0.1% in February, near the bottom of the SNB’s 0%-2% target, giving little reason for the central bank to act, especially as rising energy prices from the Middle East conflict are expected to be cushioned by the firm franc.

The SNB revised its macroeconomic forecasts, particularly regarding inflation, and now anticipates a more pronounced rise in prices in the near term.

Economists expect the central bank to maintain its current policy stance for the rest of the year.



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