Swiss five-year government bond yields have turned negative, as the Swiss National Bank (SNB) faces mounting pressure to address the strong Swiss franc and declining consumer prices. Switzerland's May consumer price index (CPI) showed a decline, and headline inflation turned negative. The SNB is expected to cut its policy rate, currently at 0.25%, to zero at its next meeting, with a further move into negative territory possible later this year. Switzerland could become the first major economy to reintroduce a negative interest rate policy in response to currency appreciation and falling prices. The Swiss franc has appreciated nearly 11% against the US dollar so far this year, marking the largest increase since 2011. The European Central Bank recently cut its policy rate to 2%, while Japan's rate stands at 0.5%. Market participants do not expect other central banks to approach negative rates unless economic conditions change significantly. The US Treasury has designated Switzerland as a currency manipulation monitoring country, complicating direct intervention options for the SNB. The SNB declined to comment on the possibility of negative rates.