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Conflicting Fed signals drive surge in hedging activity

Mixed signals from the Federal Reserve have driven U.S. rate-cut uncertainty, boosting volatility and hedging activity. Investors are increasingly using swaptions and SOFR-linked derivatives to manage risk, with surge in open interest and short-term implied volatility. Market positioning remains mixed ahead of the December Fed meeting, reflecting a divided central bank.

Source :- Markets-Economic Times Read More

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