Treasury Auctions (5,7,10,30 year securities)
Yesterday’s 10-year Treasury Note auction did not go well with several benchmarks pointing towards a weak level of investor demand. The bond market weakened after results were posted, causing some lenders to revise mortgage rates upward before the end of the day. This doesn’t allow us to be too optimistic about today’s 30-year Bond auction either. Results will be posted at 1:00 PM ET this afternoon. If it also goes poorly, we could see bonds weaken again and another round of upward rate revisions shortly after. On the other hand, if there is a strong demand in the sale, bonds and mortgage rates may improve slightly before the end of the day.