Treasury Auctions (5,7,10,20,30 year)
5-year Treasury Notes are being sold Wednesday in what is the first of this week’s two auctions that we will be watching. This sale will be followed by the 7-year Note sale Thursday. Neither of them will directly impact mortgage pricing, although they can influence general bond market sentiment. If the sales go poorly, we could see broader selling in the bond market that leads to a slight upward revision to mortgage rates. On the other hand, strong sales usually make bonds more attractive to investors, bringing additional funds into the market. The buying 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 Wednesday and/or Thursday.