Treasury Auctions (5,7,10,20,30 year securities)
Wednesday does not have any morning economic releases but does have two afternoon events that we will be watching. The first is the 5-year Treasury Note auction, which will be followed by the 7-year Note sale Thursday. Neither of these sales will directly impact mortgage pricing, although they can influence general bond market sentiment. If the sales go poorly, we could see broader selling in the bond market that leads to a slight upward revision to mortgage rates. On the other hand, strong sales usually make bonds more attractive to investors, bringing more funds into the market. The buying that follows often translates into lower mortgage rates. Results of the sales will be posted at 1:00 PM ET each auction day, so look for any reaction to come during early afternoon hours Wednesday and/or Thursday.