Chart of the Day: 5-year Swiss rate goes negative

By Sober Look On Jul 23, 2012

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

Sober Look 181 posts 0 comments

Sober Look is a no-hype financial markets/macro blog that typically relies on data analysis, primary sources, and original materials. We keep it concise, to the point, with no self-promoting nonsense, and no long-winded opinions. If you are looking for Armageddon predictions or conspiracy theories, you will be thoroughly disappointed. Topics include financial markets, banking, asset management, risk management, derivatives, global economy, policy, and regulation, with the emphasis on finance education. Follow him on his blog or twitter.

Corporatism and Fraud are Why We’re Screwed:

Full text: Moody’s puts Germany, Netherlands, Luxembourg on watch, affirms Finland

Comments are closed.