Swiss 10-Year Yield Rises to 1-Month High

Switzerland's 10-year government bond yield rose above 0.40%, reaching its highest level in a month after touching a nearly four-month low of 0.25% on June 26th, as escalating geopolitical tensions heightened concerns over oil supply disruptions and inflation risks. US-Iran tensions persisted after Washington revoked the 60-day waiver allowing Iran to sell crude and ended the ceasefire. Meanwhile, President Donald Trump said the Strait of Hormuz remained open to commercial shipping, while Tehran claimed it had closed the waterway after intercepting two vessels it said were using an unauthorized route, adding to uncertainty over global energy supplies and boosting safe-haven demand. The Swiss National Bank left its policy rate unchanged at 0% and reiterated its willingness to intervene in foreign exchange markets to curb excessive franc appreciation. Swiss inflation eased to 0.5% in June, the first slowdown in eight months, with the SNB forecasting 0.6% inflation in 2026.

Switzerland’s 10-year government bond yield rose above 0.37%, rising to over a three-week high, as renewed geopolitical tensions and higher oil prices fuelled inflation concerns. Oil surged after the US and Iran exchanged airstrikes following vessel attacks near the Strait of Hormuz, raising fears of supply disruptions. The US revoked the 60-day waiver that allowed Iran to sell crude and US President Trump stated that, as far as he is concerned, the ceasefire is over, reducing hopes for a lasting agreement. Meanwhile, the Swiss National Bank left its policy rate unchanged at 0% and reiterated its willingness to intervene in foreign exchange markets to limit excessive franc appreciation and contain imported inflation. Swiss inflation eased to 0.5% in June, the first slowdown in eight months. The reading came within the SNB’s target range, who expect inflation to gradually pick up over the course of the year, averaging 0.6% in 2026.

Switzerland's 10-year government bond yield edged up to 0.34%, tracking the global rise in borrowing costs after another increase in oil prices reignited inflation concerns. Oil prices climbed following reports of attacks on vessels near the Strait of Hormuz, highlighting ongoing geopolitical risks in the Middle East and raising fears of potential disruptions to global energy supplies. At its last meeting, the Swiss National Bank kept its policy rate at 0%, stating that it would rely on foreign exchange interventions to curb excessive franc appreciation if necessary. Inflation eased in June for the first time in eight months to 0.5%, remaining within the SNB's 0–2% target range. The International Monetary Fund urged the central bank to remain ready to adjust interest rates if needed, staying cautious of a stagflation scenario. The SNB expects inflation to pick up later this year, remaining stable over the medium term, while the government revised its 2026 growth forecast down to 0.9%.