Treasury Auctions (5,7,10,30 year securities)
Today also has the first of this week’s two Treasury auctions that may affect mortgage rates. These sales may influence broader bond trading enough to change mortgage rates slightly if they show overly strong or weak investor demand. 5-year Notes are being sold today while 7-year Notes go tomorrow. If they are met with a strong demand, we could see bond prices rise later today. This could lead to afternoon improvements to mortgage rates also. On the other hand, if the sales draw a lackluster interest from investors, mortgage rates may move slightly higher during afternoon trading these days. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours.