FX.co ★ Swiss 10-Year Bond Yield Edges Down

The yield on Switzerland's 10-year government bonds decreased to approximately 0.26%, down from the two-week peak of 0.29% reached on January 21. This decline comes as the demand for safe-haven assets diminished after President Trump withdrew his tariff threats concerning Greenland. Speaking in Davos, Trump announced that a framework agreement regarding Greenland had been achieved with NATO, fulfilling his aims concerning missile defense and access to strategic minerals. He assured that the United States would not forcibly acquire the island and retracted the planned tariffs on European countries, which were set to be implemented on February 1. Nonetheless, challenges remain, as Denmark reiterated its refusal to discuss transferring its territory to the U.S., and European legislators decided to suspend the July EU–US trade agreement. Concurrently, at the World Economic Forum in Davos, Swiss National Bank Chairman Martin Schlegel indicated that Swiss inflation might dip into negative territory in some months in 2026 but emphasized that this would not pose an issue for the central bank, which continues to prioritize medium-term price stability.