The yield on the 10-year Swiss government bond was slightly below 0.30%, the lowest since mid-June, as market participants weighed trade risks and increasing speculation of further interest rate cuts. Without a deal in place, Switzerland faces steep US tariffs of 39% on its exports - among the highest globally - set to take effect on August 7. The US is Switzerland’s largest export market, with pharmaceuticals, watches, and machinery as key export sectors. The looming tariffs are expected to significantly impact the export-reliant Swiss economy and may add pressure on the Swiss National Bank (SNB) to ease policy further, especially as its capacity to intervene in currency markets has narrowed. The central bank has lowered rates for six consecutive meetings and cut the cash rate to zero in June. Meanwhile, inflation in Switzerland accelerated slightly to 0.2% in July from 0.1% in June, with the monthly CPI flat, against expectations of a 0.2% decline, and following a 0.2% rise in June.