Treasury Auctions (5,7,10,20,30 year securities)
There is no relevant economic data being released this morning. There are two afternoon events that we will be watching, starting with results of today’s 5-year Treasury Note auction at 1:00 PM ET. These types of sales generally do not directly impact mortgage pricing, although they can influence general bond market sentiment. If the sale goes poorly, we could see broader selling in the bond market that leads to a slight upward revision to mortgage rates. On the other hand, a strong demand from investors usually makes bonds more attractive to investors, bringing additional funds into the market. The buying that follows sometimes translates into lower mortgage rates. This process will repeat itself tomorrow for the 7-year Note sale.