The yield on the 10-year Swiss government bond rose to around 0.48%, its highest since April 18, as investors reacted to renewed global trade tensions. US President Donald Trump’s threat to impose 30% tariffs on imports from the EU and Mexico added fresh uncertainty to markets, following a series of escalatory trade measures targeting multiple partners. Switzerland is still awaiting a formal US customs letter, though a draft trade deal suggests the country could receive preferential treatment to avoid pharma-related tariffs. On the monetary policy front, June's hotter-than-expected inflation report dampened expectations of further policy easing by the Swiss National Bank. Inflation returned to positive territory in June at 0.1%, surprising markets that had predicted a 0.1% decline in CPI. The SNB officials are expected to keep the interest rate steady at 0% in September, with many analysts forecasting that it will likely remain at that level through 2026.