Switzerland–JGB 10Y Spread

The Switzerland–JGB 10Y Spread is the Swiss 10-year government bond yield minus the Japanese 10-year government bond (JGB) yield. It represents the carry-funding differential, as the yen is a primary global funding currency. A wider spread makes Switzerland a more attractive target for yen carry trades, while a narrowing spread or a Bank of Japan tightening move can trigger carry unwinds.