As we indicated last week, the interest rate volatility coincided with a massive drop in OI. This morning's JPM Client Survey showed a huge jump in NEUTRALS.
The run off destroyed positions aligned to FG and the Fed dots. The survey shows that turning the positions to net long will not be easy. Eurodollar open interest trends toward the prevailing fixed or floating orientation of end users. Convincing finance operators to Pay Fixed does not jive with the general milieu.
It seems the "guide" at the head of Forward Guidance turned out to be Stork from Animal House, and the Band marched right into a dead end.