11.02.202613:01:38UTC+00Swiss 10-Year Bond Yield at Over 1-Month High

The yield on Switzerland’s 10-year government bond rose to 0.32%, its highest level since December, supported by continued safe-haven demand and expectations that the Swiss National Bank will maintain an accommodative policy stance. Market sentiment remained cautious amid persistent concerns related to artificial intelligence and reports that Chinese regulators have urged financial institutions to reduce their exposure to US Treasuries in light of policy uncertainty. At the same time, investors focused on upcoming macroeconomic indicators for clues about the future path of interest rates. Switzerland’s January inflation report, due on February 13, is expected to show annual inflation at a subdued 0.1%. Against this backdrop, the SNB is anticipated to keep its policy rate at 0% in the near term, as inflation is projected to remain within target over the next two years and the bar for reintroducing negative interest rates remains high.