Switzerland: Swiss 10-Year Bond Yield at Over 2-Week High.

The Swiss 10-year government bond yield rose further to near 0.18%, the highest level since October 31, amid reduced expectations of interest rate cuts by the Swiss National Bank. Despite subdued inflation and early signs of the heavy toll Us tariffs have taken on the economy in Q3, the central bank is widely expected to keep its policy rate at 0% in its final meeting of the year in December. Switzerland’s GDP shrank by 0.5% in the third quarter, reversing the 0.1% growth recorded in Q2. However, the recent reduction in tariffs eases some downside risks for the economy, while SNB officials remain confident that inflation will gradually rise in the coming quarters. At the same time, the central bank is reluctant to push rates below zero, wary of destabilizing the financial system. Meanwhile, safe-haven demand persisted, albeit at lower levels, as traders awaited crucial delayed U.S. economic data that could influence the Federal Reserve’s upcoming decisions.