Switzerland’s 10-year government bond yield fell toward 0.35%, reaching its lowest level since late March, as investors reacted to an interim peace agreement between the US and Iran. The accord, which provides for the lifting of the US blockade and the reopening of the Strait of Hormuz, is expected to be formally signed in Switzerland on Friday. Despite the positive development, markets remain cautious pending further details, particularly concerning Iran’s nuclear program, which remains unresolved. A sharp decline in oil prices has eased inflationary pressures and reduced expectations of additional monetary tightening. Money markets price in no further changes to Swiss National Bank interest rates through the end of the year.