The yield on the 10-year Swiss government bond remained low at around 0.24%, after the Swiss National Bank left its policy rate unchanged at 0% following six cuts since March 2024 and struck a cautious tone. The central bank now expects GDP growth of just 0.2% in 2025, down from 1–1.5%, and 1% in 2026, with inflation projected at 0.0% by mid-2028, signalling weak domestic demand. Policymakers highlighted that US tariffs pose significant risks to Switzerland's export-heavy industries, with potential further weakening of growth amid global trade uncertainties. Elsewhere, the US Federal Reserve resumed its easing cycle with a 25 bps rate cut and signaled a steady path of easing through the rest of the year.