Traders Brace For Chaos As Gamma, Delta-Hedging Quirks Threatens "Explosive Overshoot" On Fed Day

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by Tyler Durden
Tuesday, Sep 20, 2022 - 11:35 PM

With the Fed successfully slamming stocks, corporate bonds and pretty much anything that isn't the dollar, and tightening financial conditions the most in the past 2.5 years ahead of tomorrow' 75bps rate hike...

... things went from bad to worse for the bulls today on surging Terminal-rate pricing - last seen at 4.49% down modestly from 4.52% earlier...