We warned last week that behind the scenes, professionals were increasingly speculating on a delay to the "baked in the cake" June rate hike.
The sudden surge in interest in Eurodollar calls (vs puts) suggests more than just a few prop bets are being placed on the fact that The Fed does not hike rates in June.
Well the last few days have seen that started to be reflected in the primary markets... as US macro data collapses (and Trumptopia tumbles).
And we know how much The Fed hates surprising the market. However, by now it is becoming clear to even the most resentful permabulls - and even Goldman - that the longer the Fed delays the day of reckoning out of pure fear of the unknown, the greater the chaos and loss in asset values when the Fed no longer has the luxury of picking when to pull the switch.