Treasury Auctions (5,7,10,30 year securities)
We also have two afternoon events to watch today. First up is the 5-year Treasury Note auction. These types of sales usually do not directly impact mortgage pricing, but they can influence general bond market sentiment. If the sale goes 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 bonds. The buying of bonds that follows often translates into lower mortgage rates. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon hours. We will repeat this scenario tomorrow when 7-year Notes are sold.