Switzerland’s 10-year government bond yield eased to just below 0.39%, from an over eight-month high of 0.45% hit on April 7, amid easing geopolitical concerns. The US and Iran have agreed to a conditional two-week ceasefire, during which shipping traffic will be allowed through the Strait of Hormuz. This triggered a sharp fall in oil prices, easing fears of a prolonged energy and inflationary shock, while also dampening expectations of a more hawkish stance by major central banks. Domestically, the latest inflation figures reduced 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. The SNB held its key rate at 0% for a third meeting in March and reiterated potential intervention to limit the franc’s appreciation.