CHART OF THE DAY: Watch When "The Move" Moves

Since their “risk framework” isn’t fractal in nature, the Fed and their followers have no idea why we’re seeing a singular breakout in volatility, across ALL asset classes now. This part of the MOVE moving alongside HY Spreads isn’t like 1987, it’s more like 2008.

When the MOVE (Treasury Bond Vol) moves out like this:

1. MOVE +11% last week closing at 138
2. MOVE is +118% in the last month alone

What that means is that even the Treasury market is confused about what’s next. Why? That’s easy, the Treasury market already front-ran The Fed, cutting rates to all-time lows, faster than at any other time in US history.

Yep, that means last night’s Fed panic was already priced in!

When the MOVE moves like that, the standard deviation of probable bond yield outcomes moves. That’s why the @Hedgeye Risk Range blew out last Thursday as the stock market was crashing.