The Swiss 10-year government bond yield rose to near 0.29%, the highest level since October 8, as traders scale back their rate-cut bets globally. While a looming third US Fed rate cut is anticipated, the 2026 outlook is seen clouded by policy uncertainty, lingering inflation, and uneven economic data. Domestically, the Swiss National Bank (SNB) is expected to keep interest rates unchanged at 0% on December 11, maintaining the status quo for a third consecutive meeting and also through end-2026. Inflation has eased toward the lower end of the SNB’s 0–2% target range, with November’s print surprising to the downside. Even with the Franc’s strength and softer domestic activity easing price pressures, policymakers regard negative rates as unlikely, without ruling them out should conditions warrant. The central bank also expects inflation to edge slightly higher in the coming quarters, supporting the case for maintaining its current stance.