Treasury Auctions (5,7,10,20,30 year)
Tomorrow also lacks any economic releases that have the potential to influence mortgage rates, but we do have the first of this week’s two Treasury auctions that may have a minor impact on them. 5-year Treasury Notes are being sold tomorrow with 7-year Notes going Thursday. These sales will tell us if there is an appetite in the markets for medium-term securities. If the 1:00 PM ET results announcement indicates investor demand was strong, particularly from international buyers, the broader bond market could move a bit higher, pushing mortgage rates slightly lower tomorrow afternoon. But a lackluster interest from investors could lead to bond selling and higher mortgage pricing. This scenario is the same for Thursday’s auction also.