Swiss Yields Turn Negative as SNB Looks to Curb Franc Strength

Swiss two-year note yields stayed negative for a second day after central bankers announced more measures to weaken the franc, showing investors may sacrifice capital for the perceived safety of investment in the currency.

The Swiss two-year note yield fell five basis points to negative 0.06 percent at 4 p.m. in London as stock markets slid around the world. The yield yesterday slid 10 basis points into negative territory, indicating investors will receive less when the bonds mature than the sum they paid for them. Ten-year Swiss yields tumbled 19 basis points today, the most since Bloomberg began collecting the data, to 0.86 percent.