Breaking: Swiss Bond Yields Fall after Surprise SNB Rate Reduction
MarketAlleys Desk
Published · Updated · 1 min read
The Swiss National Bank has cut its key interest rate by 25 basis points to 1.50%, financial news wire Reuters reports. This compares to a consensus of forecasters that saw no rate cuts until the second half of this year and certainly nothing on the scale of what other major central banks have already done or plan to do.
In response, Swiss government bond yields saw their biggest fall in four months as the 10-year yield fell 7 basis points to 0.68%. The surprise rate cut by the SNB has sent huge reactions into the markets and brought several questions on the future course of Swiss monetary policy.
Watch this space for more on this developing story.
Terms in this article
Basis point
One hundredth of a percentage point (0.01%).
Central bank
The institution that sets a country's or region's monetary policy, issues its currency and oversees the banking system — for example the Federal Reserve, European Central Bank, Bank of England and Bank of Japan.
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