Switzerland: 10-Year Bond Yield Edges Down.

Switzerland’s 10-year government bond yield eased to near 0.36%, from seven-month highs of 0.42% on March 9, tracking major peers, on hopes for a quick end to the Iran conflict that has threatened global growth. US President Trump said the war with Iran could be resolved “very soon,” easing some of the recent market turbulence caused by the spike in energy prices. Swiss inflation remains extremely low at 0.1%, at the lower bound of the SNB’s 0–2% target range, and mild upward pressure would be welcomed. However, Swiss households are less exposed to energy price shocks than their euro-area neighbors, with the electricity grid relying heavily on hydropower. A key concern for the Swiss National Bank is upward pressure on the Swiss franc amid the current risk environment, which could prompt foreign exchange intervention to maintain price stability. The SNB is expected to maintain its current policy stance in the near term, anticipating modest inflation increases in the coming months.