The yield on the Swiss 10-year government bond fell to the 0.7% level from the eight-year high of 1% touched on May 9th, tracking European bond yields lower as investors reassessed the magnitude of tighter monetary policy by major central banks amid rising growth concerns. Domestically, the SNB has not shown plans to deviate from its ultra-loose monetary policy despite a 13-year high inflation rate of 2.5% in April, as Chairman Jordan stated that current levels of inflation are a temporary phenomenon. In its last meeting, the central bank kept rates unchanged at -0.75% and emphasized it would control the franc’s appreciation. Meanwhile, the latest unemployment figures were higher than expected at 2.3%.
Historically, the Switzerland Government Bond 10Y reached an all time high of 5.63 in September of 1994. Switzerland Government Bond 10Y - data, forecasts, historical chart - was last updated on May of 2022.
The Switzerland Government Bond 10Y is expected to trade at 0.79 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.05 in 12 months time.