SNB's Schlegel says the Bank will not hesitate to move rates into negative territory and that a move below zero is a bigger step than a normal cut

The SNB's Schlegel indicating a willingness to push rates into negative territory suggests a hawkish pivot, as it implies a more aggressive monetary stance than previously anticipated. This statement could signal a shift in the risk assessment surrounding the economic outlook, influencing market expectations for Swiss monetary policy and potentially impacting the CHF and interest rate futures. It’s worth monitoring how this affects risk sentiment across fixed income markets in response.