February 02, 2023 19:26 GMT
GoCs/Rates Modestly Richer As They Consolidate Post-FOMC Shift
- Moving later into the session, GoC yields are in the middle of session ranges, sitting 2-3.5bps lower through 2-10Y tenors after yesterday’s 6-8bp decline with the FOMC.
- They’re led by the 10Y after a further increase in b/c at the earlier auction.
- GoCs broadly track with Treasuries on the day despite weaker than expected building permits, although see some outperformance in rates, notably so for 1H24 contracts with BAH4 +0.09 vs SFRH4 +0.025.
- US payrolls and potentially ISM services firmly in the driving seat tomorrow amidst a blank Canadian docket.