The Swiss National Bank kept its policy rate unchanged at 0%, maintaining the lowest benchmark rate in the world as inflation remains comfortably within its price stability range.

A renewed rise in US Treasury yields is strengthening the dollar and tightening financial conditions on September 25. Markets are pricing nearly a 69% probability of another Federal Reserve rate hike in October after several policymakers signaled that further tightening may be needed to bring inflation back toward target. The 10-year Treasury yield has moved above 5%, increasing pressure on rate-sensitive assets.

US Treasury markets faced renewed selling pressure as investors adjusted to expectations of tighter Federal Reserve policy and growing government debt supply. Yields climbed across the curve, pushing borrowing costs higher and increasing volatility across financial markets.