Swiss Bond Yield Eases on Strong Economy and Weak Franc
Switzerland's 10-year government bond yield has eased to around 0.58% after reaching its highest level since March 2026, according to TradingView.
The Organisation for Economic Co-operation and Development (OECD) raised its economic growth forecast to 2% from 1.1%, citing a strong performance in the second quarter that reached 1.5%, its highest level in five years.
This uptick was driven by a weaker Swiss franc, which supported exporters, while safe-haven demand also provided support amid rising oil prices and heightened economic uncertainty.
On the monetary policy front, all bankers surveyed expect the Swiss National Bank (SNB) to keep its policy rate at 0% by year-end, as the impact of higher energy prices remains limited. Markets anticipate the first rate hike in June 2027, while most economists expect the first hike in early 2028.