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Swiss bonds soar; Norges Bank hawkish no more

Safe-haven demand has seen Swiss bond yields plumb new depths and has continued to boost the franc. We think that it is only a matter of time before the SNB cuts interest rates further into negative territory. Meanwhile, the dovish shift in tone by the Norges Bank at its meeting this week signals to us that it has reached the end of its tightening cycle, and we think the risks to the krone are now on the downside.

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