Treasury Auctions (5,7,10,30 year securities)
Tomorrow has no relevant economic data but does have the first of this week’s two Treasury auctions that may have an impact on mortgage rates. 5-year Treasury Notes are being sold tomorrow, followed by 7-year Notes Thursday. Neither of these sales will directly impact mortgage pricing, but they can influence general bond market sentiment. If the sales go poorly, we could see broader selling in the bond market that leads to upward revisions in mortgage rates. On the other hand, strong sales usually make government securities more attractive to investors and bring more funds into bonds. The buying of bonds that follows often translates into lower mortgage rates. Results of the sales will be posted at 1:00 PM ET each auction day, so look for any reaction to come during early afternoon hours.