Treasury Auctions (5,7,10,20,30 year)
Tomorrow does have an afternoon event that may have a modest impact on rates. There is a 5-year Treasury Note auction happening tomorrow These sales don’t directly impact mortgage pricing, but they can influence general bond market sentiment. If the sale goes poorly with weak demand from investors, we could see selling in the broader bond market that leads to a slight upward afternoon revision in mortgage rates. However, a strong sale may make bonds more attractive to investors, leading to a slight improvement in pricing. Results will be posted at 1:00 PM ET, so look for any reaction to come during early afternoon hours. It is worth noting that this week’s auctions are for shorter-term debt, which is not nearly as influential as the other sales we follow because mortgage rates are based on long-term securities.