Swiss Bond Yield Eases Amid Inflation Concerns

Swiss bond yields have eased from their one-week high as investors assess inflation risks stemming from the conflict in the Middle East.

The 10-year government bond yield dropped below 0.4% after reaching its peak, while Swiss inflation slowed to 0.4% in July.

Economists expect the SNB to hold its policy rate at 0% through 2027, with further cuts seen as a contingency rather than the base case.

The first rate hike is predicted for early 2028 by most economists, but markets are pricing in one as soon as March 2027.