Swiss Franc Surges Amid Bond Market Turmoil

The Swiss franc surged against major currencies on Thursday as bond markets came under renewed pressure and volatility spiked.

USD/CHF reversed from upper channel resistance, while broad CHF strength and signs of a carry-trade unwind favor a deeper pullback.

Global bond markets took another beating on Thursday, with sovereign yields surging to multi-decade highs due to persistent inflation, rising energy prices, and the prospect of interest rates remaining higher for longer.

US Treasuries were at the centre of the turmoil, with yields surging across the curve and the 20- and 30-year bonds experiencing significant increases.