Back to ZIRP Swiss headline inflation turned negative in May. The Swiss central bank is likely to cut rates next week to zero and may follow that with another cut into negative territory later this year. https://t.co/cHvSfOKxWJ
10Y yield back above 4.5% 30Y yield just about back above 5% https://t.co/xMJ8kSE2rM
アングル：マイナス金利復活へ追い込まれるスイス中銀、通貨高対応で https://t.co/UgbVPwGSwK https://t.co/UgbVPwGSwK
Swiss five-year government bond yields have turned negative, as the Swiss National Bank (SNB) faces mounting pressure to address the strong Swiss franc and declining consumer prices. Switzerland's May consumer price index (CPI) showed a decline, and headline inflation turned negative. The SNB is expected to cut its policy rate, currently at 0.25%, to zero at its next meeting, with a further move into negative territory possible later this year. Switzerland could become the first major economy to reintroduce a negative interest rate policy in response to currency appreciation and falling prices. The Swiss franc has appreciated nearly 11% against the US dollar so far this year, marking the largest increase since 2011. The European Central Bank recently cut its policy rate to 2%, while Japan's rate stands at 0.5%. Market participants do not expect other central banks to approach negative rates unless economic conditions change significantly. The US Treasury has designated Switzerland as a currency manipulation monitoring country, complicating direct intervention options for the SNB. The SNB declined to comment on the possibility of negative rates.
