The yield on the 10-year Swiss government bond has decreased to approximately 0.35%, marking a new low not seen in the past two and a half years. In Stember, the Swiss National Bank cut the key interest rate by 25 basis points for the third time consecutively, signaling its readiness to lower borrowing costs further if necessary to ensure price stability and manage the robust performance of the Swiss franc.
Inflation in Switzerland dipped to 1.1% in August 2024, the lowest rate in five months, down from 1.3% in the prior two months and falling short of market expectations of 1.2%. Conversely, the Swiss franc is close to the twelve-year highs seen in December 2023, influenced by the ongoing easing cycle initiated by the Federal Reserve's notable 50 basis point rate cut, which has exerted downward pressure on the U.S. dollar.
As of Monday, October 7, the Switzerland 10-Year Bond Yield stood at 0.43% based on over-the-counter interbank yield quotes. Analysts predict that the yield will likely trade around 0.33% by the end of the current quarter, with further expectations suggesting it may decrease to 0.27% over the next twelve months.