Treasury Auctions (5,7,10,20,30 year)
Tomorrow also has the first of this week’s two Treasury auctions that we will be watching. They both have the potential to affect bond trading enough to alter rates slightly. The key is how strong investor interest is in the securities. 5-year Notes will be sold tomorrow while 7-year Notes go Thursday. If they are met with a strong demand from investors, we could see bond prices rise and mortgage rates improve slightly during afternoon trading. On the other hand, if the sales draw a lackluster interest from investors, mortgage rates may move slightly higher during afternoon trading those days.