Treasury Auctions (5,7,10,20,30 year)
We also have the first of this week’s two potentially influential Treasury auctions taking place. The Treasury will sell 5-year Notes tomorrow and 7-year Notes Thursday. These sales will tell us if there is an appetite in the markets for medium-term securities. If investor demand in these sales is strong, particularly from international buyers, the broader bond market should move higher, pushing mortgage rates slightly lower. But a lackluster interest from investors could lead to bond selling and higher mortgage pricing. The results of the sales will be announced at 1:00 PM ET each day, so any reaction will come during afternoon trading tomorrow and/or Thursday.