The yield on the Swiss 10-year government bond rose above the 0.96% mark, rebounding from the one-month low of 0.94% touched on August 29th and tracking the rise in European government bond yields as markets weighed on concerns of economic contraction against rising price growth. Domestically, credit markets continued to bet on another rate hike from the Swiss National Bank, as policymakers’ concerns about second-round inflationary risks remained despite recent evidence of cooling price growth. The headline inflation rate fell to 1.6% and the core rate eased to 1.7% in July, the lowest among European economies, and dropping further below the central bank’s upper limit of 2%.
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 August of 2023.
The Switzerland Government Bond 10Y is expected to trade at 1.09 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 1.38 in 12 months time.