By Marta Vilar – MADRID (Econostream) – A new Swiss confederation bond is expected later in 2026 and could be issued around the 2041 maturity, which represents the next gap in Switzerland’s bond profile, according to Adrián Martínez, Vice Director of the Swiss Federal Finance Administration (FFA).

In an interview with Econostream on 13 March 2026 (transcript here), Martínez said the 11 March auction, held amid market volatility linked to the Iran war, had seen “possibly some safe-haven demand” as a result of the geopolitical developments.

However, he said that “[w]e don’t see any direct impact” from the Middle East conflict, adding that investors had not raised the issue during pre-auction market soundings.

Asked whether the recent volatility would affect maturity selection in auctions, Martínez said the decision largely depended on demand.

“If demand is stronger at the long end, for example, we may choose to reopen longer-dated bonds,” he said.

Another reopening could take place at the April auction, as happened in the January, February and March auctions, he said, adding that new bonds are typically issued between April and June.

Martínez said the FFA’s framework ensured that maturities between one and 13 years were covered by liquid bonds, with additional anchor points further along the curve. “[B]ased on our current bond profile, the next gap is around the 2041 maturity,” he said, suggesting the next new bond could be issued around that point.

Demand for Swiss confederation bonds had been particularly strong at the long end over the past year, he said, noting that since early 2026 treasury accounts had also shown strong demand for maturities under 10 years. “That’s one reason we reopened the 2034 bond this week,” he said.

According to Martínez, decisions on which bonds to reopen at each auction were guided by the FFA’s target issuance duration of around 12 years, as well as investor demand, with the process retaining “flexibility.”

Asked about the recent strengthening of the Swiss franc, he said that “[e]xchange rate developments or potential central bank interventions do not play a role in our issuance decisions,” adding that he did not expect adverse effects if the euro were to become more prominent.

Regarding green bond issuance, Martínez said the FFA could tap the 2038 green bond again this year, while issuing a new green bond was “unlikely until the existing one reaches its target size,” around CHF 4-5 billion.

He also said that reducing the auction window from 90 minutes to 30 minutes this year had not affected participation or price formation.

“The change was simply meant to make the process more efficient and align it with actual bidding behavior,” he said. “Previously the auction lasted 90 minutes, but most bids were submitted in the final 20 minutes.”