Two-year Swiss government bond yields rose to
one-week highs at 1.173% after the rate decision.
The Swiss bond market has been unusually volatile this week,
as markets grappled with the fallout of the Credit Suisse-UBS
deal .
On Tuesday, two-year Swiss yields closed over 60 bps higher
on the day, marking their biggest one-day jump since early
1995.
(Reporting by Samuel Indyk and Amanda Cooper, editing by Dhara
Ranasinghe)
LONDON, March 23 (Reuters) - The Swiss franc
strengthened on Thursday while two-year bond yields rose after
the Swiss National Bank raised its main interest rate by 50
basis points, underlining a clear separation of the monetary
policy path from financial stability.
The Swiss franc strengthened across the board, with the euro down 0.2% at 0.9939 francs and the dollar down 0.5% at 0.9121 francs.
On Sunday, Swiss authorities orchestrated a $3 billion deal
for UBS to buy rival Credit Suisse , backed by
a massive guarantee of up to $260 billion in state and central
bank support.
But with inflation still high, the SNB decided further rate
hikes would be required to curb inflation.
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