The Swiss 10-year government bond yield edged up to around 0.30%, the highest in nearly a week, as geopolitical tensions sustained safe-haven demand while investors weighed the policy outlook.
Swiss CPI rose 0.1% year-on-year in December 2025, the first increase since July, though still at the lower end of the SNB’s 0-2% target range.
This reinforced expectations that the Swiss National Bank (SNB) will likely keep interest rates steady at 0% in the coming meetings.
While short-term inflation could remain subdued, it is projected to rise gradually as the economic recovers.
Minutes from the SNB’s December meeting showed policymakers saw little urgency to adjust policy, keeping the key rate at 0% and noting that neither tightening nor further easing was appropriate at this stage.
They highlighted the prospect of gradually rising consumer-price growth and an improved economic outlook for Switzerland following the announced reduction in US tariffs.