“Funding markets remain volatile due to a data-dependent FOMC with two more meetings looming this year – Canadian year-end, and U.S. year-end.
Bid/offer on term repo has been wide as there doesn’t seem to be a lot of certainty around the November and December FOMC meetings until we see the next slew of data when we’ll get NFP and the unemployment rate this Friday, 10/06/23.
Futures markets are currently pricing in a 50% chance of a hike cumulatively between the November and December FOMC meetings.”