2026.03.1911:14:21UTC+00Swiss 10-Year Bond Yield Steady After SNB Decision

Switzerland’s 10-year government bond yield was little changed at around 0.35%, as investors weighed safe-haven demand stemming from escalating tensions in the Middle East against expectations of stable monetary policy into 2026. The Swiss National Bank kept its key interest rate at 0% for a third consecutive meeting, balancing subdued inflation against the strength of the Swiss franc, whose deflationary impact poses risks to the inflation outlook.

Inflation stood at just 0.1% in February, close to the lower bound of the SNB’s 0%–2% target range, leaving the central bank with little incentive to adjust policy. Moreover, any upward pressure on energy prices from the Middle East conflict is expected to be partly offset by the robust franc. The SNB has updated its macroeconomic projections—particularly its inflation outlook—and now foresees a more noticeable increase in prices in the near term. Nonetheless, economists broadly expect the central bank to keep its current policy stance unchanged for the remainder of the year.