The yield on the 10-year Swiss government bond was at the 0.2% mark in late January, losing nearly 10bps since the start of the year to the lowest in nearly eight weeks as the latest economic developments favor a backdrop for the Swiss National Bank to remain accommodative in the medium term. The headline inflation rate was at 0.1% in December, remaining under the average from the year and well below the change in Switzerland's Eurozone neighbors. In the meantime, the last GDP data reflected a 0.5% contraction in the third quarter amid the impact of tariffs from the US. Also strengthening the argument for lower borrowing costs, the franc appreciated to a decade high amid the influx of foreign investors pivoting to a haven currency as the dollar plunges. While SNB policymakers indicated reservations in cutting rates to the negative territory, a small portion of the market has positioned for a rate cut by June.