Treasury Auctions (5,7,10,30 year securities)
There are two Treasury auctions that are worth watching this week, one of which is taking place tomorrow. 5-year Treasury Notes are being sold tomorrow while 7-year Notes go 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 to mortgage rates. On the other hand, strong sales usually make bonds more attractive to investors, bringing more funds into the bond market. The buying of bonds that follows 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 tomorrow and Thursday.