Bond Risk Crashes To 2-Year Lows As VIX Shorts Fold

Jon Alternative Media, Blogosphere, Market Commentary

After 10 straight weeks of increasingly bullish speculative positioning (‘longer’ stock futures and ‘shorter’ VIX futures), the last 2 weeks have seen short VIX bets plunge (down 35%) at the fastest rate since pre-Brexit and the Aug 2015 crash. At the same time as this surge to hedging, the day since The Fed’s utterly farcical fold have seen bond volatility crash to its lowest in two years.
The last two weeks have seen a major derisking of speculative VIX short positioning… (35% collapse in net VIX shorts)

This post was published at Zero Hedge on Sep 25, 2016.