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%.