Switzerland’s 10-year government bond yield fell below 0.58% after reaching its highest level in well over a year, as the Swiss economy remained resilient despite elevated global oil prices due to the conflict in the Middle East and economic uncertainty amid ongoing trade tensions with the US. The State Secretariat for Economic Affairs raised its forecast for economic growth to 1.7% in 2026, up from its June projection of 0.9%, in line with that of the OECD, which also raised its growth forecast to 2% following strong economic performance in the second quarter, when growth accelerated to 1.5%, its highest level in five years. Safe-haven demand also provided support. On the monetary policy front, a Swiss Bankers Association survey showed that all bankers expect the SNB to keep its policy rate at 0% by year-end, as the impact of higher energy prices remains limited. Markets anticipate the first rate hike in June 2027, while most economists expect the first hike in early 2028.