The recent speculation about interest rates has caused a surge in government bonds, resulting in the "Eidgenoss" reaching its lowest level since February 2022.

Traders now believe there is an 85% chance that the European Central Bank (ECB) will lower interest rates by 25 basis points during its October meeting. This is a significant increase from 75% on Monday and 45% a week ago.

The ECB has already reduced interest rates by 25 basis points in both June and September, bringing the current rate to 3.5%. This change in market sentiment reflects the growing expectation for further monetary easing as economic conditions develop.