Swiss bond market sees rising mortgage rates and US tech interest

The Swiss bond market is experiencing significant activity, characterized by both rising mortgage costs and a boom in corporate bond issuances. In the third quarter of 2026, indicative rates for ten-year fixed-rate mortgages in Switzerland surpassed 2 percent, reaching 2.07 percent. This increase occurs despite the Swiss National Bank maintaining its policy rate at 0 percent, driven instead by rising international interest rates and increasing real estate prices.

Simultaneously, the Swiss franc bond market is seeing high demand from foreign entities. According to the Swiss Rating Guide 2026 by Zürcher Kantonalbank (ZKB), major US technology companies such as Amazon and Alphabet have begun utilizing the Swiss capital market to fund investments, specifically for AI infrastructure. Amazon raised 2.8 billion Swiss francs, while Alphabet raised 3 billion. This follows a record year in 2025 where 558 new bonds totaling approximately 124 billion francs were issued on the SIX Swiss Exchange.