TME daily: Prime time for affordable hedging

Got CB hedges?

Busy central bank week, but hedges remain rather inexpensive. UBS writes: "... hedging costs remain low with most index implied vols trading in single digit percentiles vs the last 2yrs (or at least close to it), creating an attractive opportunity to protect near-term downside."

FOMC straddle was priced at just below 0.7%, the lowest implied move since November 2021.