Treasury Auctions (5,7,10,20,30 year)
Yesterday’s 5-year Treasury Note auction drew mixed demand from investors. Some benchmarks showed an average or slightly better interest for the securities while others pointed to a soft sale. The bond market had already weakened before results were announced at 1:00 PM ET, but they did lose a little more ground shortly after. Accordingly, we can attribute some of yesterday’s afternoon weakness and upward change in rates to the auction. Those results prevent us from being overly optimistic about today’s 7-year Note sale. We will get results of today’s auction at 1:00 PM ET also, making this an early afternoon event for mortgage rates. A strong demand from investors could lead to bond gains and lower mortgage pricing later today.