Treasury Auctions (5,7,10,20,30 year)
There is also a 10-year Treasury Note auction taking place tomorrow that will give us an indication of demand for long-term securities, as are mortgage bonds. If the sale is met with strong interest from investors, we should see the bond market move higher during afternoon trading tomorrow. However, a lackluster demand from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds could cause an upward revision to mortgage rates.