VIX Plunges To 5 Year Low

Tyler Durden's picture

VIX at its lowest (sub-14%) since Summer 2007...

and the Volatility term structure, its steepest EVER...

 

Short-term volatility (risk) is the lowest relative to medium-term risk EVER - is this the biggest ever levered bet on FOMC calmness into European election event risk? Or more technically is this late forced unwinds of legacy long vol/steepeners into the Greece March 20th event risk (which seemed like a decent trade looking for a risk-flare). Given the steepness of the rest of the curve, it certainly feels very technical (flow) driven.

Charts: Bloomberg