Chart of the Day: 5-year Swiss rate goes negative
By Sober Look
The Swiss government bond curve is now negative for maturities of five years and under. Investors are willing to lock up a negative yield for 5 years just to get out of euro denominated assets without taking much FX risk. Fears of Eurozone breakup are escalating.
As a result, debt issuance for Switzerland’s government is becoming a profit center rather than a source of interest expense.
Swiss government curve