Swaptions Market Hasn't Been This Excited In A Year Ahead Of

Swaptions Market Hasn't Been This Excited In A Year Ahead Of Fed


by Tyler Durden
By Ven Ram, Bloomberg Markets Live commentator and writer
The swaptions market hasn’t been in tenterhooks this much ahead of a Fed meeting in a year, a study of volatility patterns shows.
Volatility on the key 1m10y swaption is now about 86 basis points, which factors in a daily move of about 5.4 basis points/day. That is the highest on the day of a Fed review since March 2020.
While the readings were elevated both ahead of the out-of-cycle March 3 and March 15 policy meetings, global financial markets were in extreme tumult by then.
Curiously, as happened last year,

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