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Swiss Swap Rates Turn Negative on Franc Fight: Chart of the Day

The rate to exchange fixed- for floating interest rate payments denominated in francs turned negative for the first time while the Swiss National Bank loses ground in its fight to halt a surge in the currency.

The top panel of the Chart of the Day shows the two-year swap rate slid yesterday to below zero. The bottom panel shows the appreciation in the franc versus the euro this month even as the Swiss central bank took steps to curtail demand for its nation’s assets and dampen the appreciation of its currency, sending interest rates to record lows.