Treasury Auctions (5,7,10,20,30 year)
The calendar begins early Wednesday afternoon with the first of two important Treasury auctions set for this week. 10-year Treasury Notes will be sold Wednesday, followed by 30-year Bonds Thursday. These sales will give us an indication of demand for long-term securities, such as mortgage-related bonds. If the sales are met with a strong demand from investors, we should see the bond market move higher during early afternoon trading those days. However, a lackluster interest from buyers, particularly international investors, will likely lead to broader bond selling. The selling in bonds would result in upward afternoon revisions to mortgage rates.