Tsy 2s Off Contract Lows

Tsy futures continue to bob around session highs after the bell, holding narrow range since rates bounced post Durables/Cap-Goods. Heavy spate of corporate debt issuance (over $19B over 17 names) provided two way hedging across the curve.
FI markets gained

• Rates gained earlier after larger drop in Jan durables new orders (-4.5% vs. -4.0%; Dec revised +5.1%) then scaled back from session highs following Pending Home Sales read for Jan at 82.5 up from 76.3 in Dec, +8.1 MoM well over 1.0% estimate. Futures reluctant to recede very far from session highs, however, 30YY 3.9097% (-.0194). Some technical buying in the mix as rates move off contract lows (TUH3 101-17.75 vs. 101-22.38 last).
• STIR: Fed funds implied hike for Mar'23 at 29.8bp, May'23 cumulative 55.8bp (-1.4) to 5.138%, Jun'23 73.2bp (-1.9) to 5.312%, terminal at 5.395-5.400 in Aug'23-Oct'23 (5.41-5.415% prior).
• Tuesday focus: Adv Goods, Wholesale Inv and MNI Chicago PMI.