Switzerland’s 10-year government bond yield rose to near 0.39%, in line with major peers, as investors reassessed geopolitical risks. Expectations of a swift resolution to the Middle East conflict were dented after President Donald Trump, in a televised address, suggested US forces are close to completing their mission but will continue heavy military action over the coming weeks, reviving fears of a sustained energy crisis and upward pressure on inflation. Meanwhile, the latest domestic inflation figures eased pressure on the Swiss National Bank to adjust policy. The annual consumer price inflation accelerated to 0.3% in March, from 0.1% in February, marking the highest in a year and highlighting the impact of rising energy prices linked to the war in the Middle East. Still, it was below the expected 0.5% and remains near the bottom of the SNB’s target of 0-2%.
