Swiss 10-year yield drops to new record low

Swiss 10 year yield dropped to record low today, just when analysts were thinking, how low it will go.

Swiss National Bank (SNB) feeling intense inflow pressure from Euro Zone and selling pressure in Euro against Franc, back in the days of Euro zone debt crisis of 2011/12 introduced negative rates from the first time and has pushed lower from there. It had also introduced a floor of 1.2 in EUR/CHF, which

SNB interest rate now stands at -0.75%, much lower compared to European Central Bank's -0.20% deposit rates. Swiss bonds, have been rising steadily since 2011, while yields drop past below negative. Swiss 10 year yield dropped to -0.41% today. Swiss 10 year yield, first dropped in negative when SNB removed the 1.2 EUR/CHF floor in January and since June, pace of drop has sharply increased surpassing that of bund. Since 2011, 10 year yield has dropped more than 120% since 2011.

Switzerland is the only country in the world, where investors are lending money for more than decade at negative rates.

Franc is currently trading at 1.03 against Dollar.