USD strength, precious metal weakness, long-bond selling, and stocks tanking – all on the back of the ultimate driver of exuberance, the JPY-carry trade’s leverage. With VIX pressing higher (over 16.5%) and credit spreads widening further, it seems hedges (or simply reducing exposure) into tomorrow’s FOMC is the order of the day…
JPY carry unwinds driving the ship…
As VIX is well bid into tomorrow…
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/B-ldNJ0DQH0/story01.htm Tyler Durden