Switzerland’s 10-year government bond yield traded around 0.43%, after reaching a one-month high, as a rebound in global oil prices renewed concerns over inflation and energy supply disruptions, putting upward pressure on yields. Meanwhile, quarterly economic growth accelerated to 1.5% in Q2 2026, the strongest pace since 2021, while foreign exchange interventions supported exporters and helped lift the trade surplus to a record high by limiting safe-haven flows into the franc and preventing excessive appreciation. On monetary policy, a Swiss Bankers Association survey showed that all bankers expect the SNB to keep its policy rate at 0% by year-end, while 60% expect it to remain unchanged throughout 2027. Markets now anticipate the first rate hike in June 2027, later than the previous March expectation, while most economists expect the first hike in early 2028. Still, Swiss inflation slowing to 0.4% in July, although US trade policy also remains a key uncertainty.