SNB Sight Deposits w/e Aug 28th (CHF): Domestic 431.29bln (prev. 437.11bln), Total 457.35bln (prev. 463.66bln)

Weekly sight deposit figures are the standard proxy for SNB balance sheet activity, and a decline in both domestic and total deposits on the week points to an absence of fresh franc-selling intervention rather than active operations. In episodes where the SNB has been intervening to weaken the franc, sight deposits have risen, often sharply, as francs are created to buy foreign assets; flat or falling prints have therefore historically been read as the Bank standing aside, tolerating franc strength or at least not resisting it. The decline can also reflect technical factors such as maturing SNB bills, repo operations or shifts in banks' demand for reserves, so a single weekly move of this size is typically treated as noise rather than signal. The distinction that matters is between a one-off wobble and a sustained directional trend over several weeks, which is what has previously flagged a genuine shift in intervention stance. Worth watching are the subsequent weekly prints for confirmation, alongside the franc's trade-weighted level, since persistent strength in the currency has historically been the trigger for renewed deposit growth. As a liquidity gauge rather than a policy statement, the read-through is incremental.