Swiss Financial System
SNB Bills
SNB Bills sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Definition
SNB Bills sits inside the operating framework through which the Swiss National Bank steers short-term Swiss-franc liquidity and money-market rates.
Operating mechanism
SNB Bills are short-term debt certificates issued by the SNB to absorb liquidity. Investors exchange sight deposits for an SNB liability; at maturity the transaction reverses, making the instrument a liquidity-management tool rather than federal government borrowing.
Why markets care
The instrument affects the path from the policy rate to SARON, repo pricing, bank liquidity and ultimately broader CHF funding conditions. Its importance therefore depends on both price and quantity.
What to monitor
Follow SNB operational announcements, sight-deposit data, SARON, repo conditions and changes to remuneration, collateral or counterparty rules. The framework can change without a change in the headline policy rate.