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

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)

 

And spec positioning in stocks is fading off after months of constant increases...

 

And as traders pile out of their spec longs and into hedged equity positions, so interest rate uncertainty has collapsed to two-year lows...

 

Ao as The Fed crushes its own over-optimistic growth hype hopes, more in line with consensus, one wonders just how long until the fundamental chasm between reality and perception reasserts itself (if ever)...