Here's How To Hedge The Coming Debt Ceiling Crisis

While nowhere near the extremes hit 2 months ago when bond volatility surpassed the covid crash highs and neared records reached during the global financial crisis, the MOVE index has been stable-to-higher in the past month while the VIX has fallen sharply and approached post-Covid lows with a 15-handle, adding directional divergence to an already massive gap.

The gap - as BofA's derivatives guru Benjamin Bowler writes - is particularly striking given that we no longer face last year's extreme concerns about inflation (if anything, they shifted to growth/lower rate fears).