The Swiss 10-year government bond yield eased to around 0.26%, from two-week highs of 0.29% hit on January 21, as safe-haven demand waned following President Trump’s withdrawal of tariff threats linked to Greenland. Trump said in Davos he had secured a framework agreement on Greenland with NATO, satisfying his objectives on missile defense and access to strategic minerals. He emphasized that the US would not take the island by force and canceled threatened tariffs on European nations set to start February 1. However, risks persist, as Denmark reiterated that it would not negotiate ceding its territory to the US, while European lawmakers put the July EU–US trade agreement on hold. Meanwhile, Swiss National Bank (SNB) Chairman Martin Schlegel said at the World Economic Forum in Davos that Swiss inflation could turn negative in some months in 2026, but stressed this would not be a problem for the central bank, which remains focused on medium-term price stability.
