Swiss Bond Yield Climbs Amid Bond Selloff
2026-10-01 09:24
By
Larissa Caser
1 min. read
The yield on the Swiss 10-year government bond climbed above 0.6% after reaching a one-week low, tracking a broader bond selloff as elevated energy prices continued to pressure inflation.
Swiss inflation rose to 1%, its fastest pace of increase in two years, as higher oil prices pushed up costs.
A weaker Swiss franc also contributed by raising import costs.
Nevertheless, inflation remained within the Swiss National Bank’s 0%-2% target range, with price pressures still relatively subdued compared with those in other European economies.
The SNB kept its policy rate at 0% at its September meeting, as widely anticipated, leaving borrowing costs at the world’s lowest level for more than a year while scaling back its threat of currency intervention.
Most economists expect the policy rate to remain unchanged through 2027, although markets continue to price in a rate hike by year-end and roughly three hikes by the end of 2027.