Switzerland - Average Long-term Government Bond




Switzerland: Average Long-term Government Bond

Mnemonic IRGTLT.ICHE
Unit % p.a., NSA
Adjustments Not Seasonally Adjusted
Business Daily
Data 31 Jul 2020 -0.53
30 Jul 2020 -0.52

Series Information

Source Banque National Suisse
Release Interest Rates
Frequency Monthly
Start Date 1/4/1988
End Date 7/31/2020

Switzerland: Markets

Reference Last Previous Units Frequency
Average Long-term Government Bond 31 Jul 2020 -0.53 -0.52 % p.a., NSA Business Daily
Money Market Rate Jul 2020 -0.74 -0.73 % p.a., NSA Monthly
Stock Market Index 31 Jul 2020 10,005 10,095 Index, NSA Daily
Treasury Bills (over 31 days) Jul 2020 -0.74 -0.73 % p.a., NSA Monthly
Lending Rate 11 Jun 2019 -0.71 Percent, NSA Business Daily

Release Information

Description

In accordance with the International Monetary Fund's website: The Swiss National Bank disseminates repo rates for overnight-, one-, two- and three weeks at which the SNB provides liquidity to the banks in the Monthly Statistical Bulletin.

  1. In addition, interest rates are published for:
    1. Money market debt register claims 3 months (sold by auction)
    2. Libor market rates for Swiss Francs (1,3,6,and 12 months)
    3. Libor market rates for US-Dollar, Euro, Japanese Yen, and the British Pound (3 months)
    4. Yield on Swiss Confederation bonds (2, 3, 4, 5, 7, 8, 10, 20, 30 years of maturity)
    5. Yield on Corporate bonds (8 years of maturity)
    6. 3-month deposit rate of the big banks at beginning of month
  2. The following 3 interest rates are published daily on the internet:
    1. Overnight repo rate
    2. 3-month Libor for the Swiss Franc
    3. 10-year yield on Swiss Confederation bonds

In addition to the yield of Swiss Confederation bonds, yields for 8 years maturity of the following categories are published:

  • Cantons
  • Mortgage bond institutions
  • Commercial banks (incl. cantonal banks)
  • Manufacturing (incl. power plants) and trade

Methodology

The source writes:

Breakdown of interest rates

Interest rates are published as time series and are broken down by (1) product group and (2) other major loan conditions.

  1. Loans are allocated to one of the following three product groups:
    • Current account advance facilities: working capital loan with a variable interest rate for an unlimited period. The customer determines the degree to which the loan will be drawn down within an agreed credit line.
    • Fixed-interest investment loan: working capital loan with fixed term and pre-agreed fixed rate of interest.
    • Mortgage: loan for funding real estate. A mortgage is a claim secured by real estate. In the case of a variable-rate mortgage not linked to a base rate of interest, the bank can alter the rate of interest but is not contractually obliged to make periodic adjustments in line with a base rate of interest. The term of the loan is considered to be unlimited. In the case of a variable-rate mortgage linked to a base rate of interest, the bank is contractually required to make periodic adjustments to a base rate of interest. The term of the loan is considered to be limited.In the case of a fixed-rate mortgage, the rate of interest is fixed when the loan agreement is concluded and remains unchanged throughout the maturity of the loan.
  2. Interest rates are broken down for the different product groups according to the factors which have the greatest impact on interest rates:
    • Credit risk, by expected loss (the expected loss (EL) corresponds to the product of probability of default (PD) of the borrower and the loss ratio in the event of default, as a percentage of the loan amount (LGD, Loss Given Default): EL = PD x LGD)
    • Maturity
    • Loan amount/credit line

Credit risk, maturity and loan amount are combined in categories. For certain product groups and factors, the categories are defined more broadly in order to ensure the confidentiality and representativeness of the data.

Spot rates measure the yield on zero-coupon bonds at varying terms.