Wednesday’s bond market has opened flat despite early selling in stocks. The major stock indexes are showing fairly sizable losses with the Dow down 101 points and the Nasdaq down 12 points. The bond market is currently up 1/32 (1.75%), which should keep this morning’s mortgage rates at yesterday’s levels.
Today’s only relevant event is this afternoon’s 10-year Treasury Note auction. Results will be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. If investor demand for the securities was strong, we could see the bond market improve and mortgage rates improve slightly sometime this afternoon. However, a lackluster interest, meaning longer-term securities are losing their appeal, could lead to higher mortgage pricing this afternoon.
Tomorrow’s only economic data is last week’s unemployment figures at 8:30 AM ET. They are expected to show 270,000 new claims for unemployment benefits were filed last week, dropping from the previous week’s 274,000 initial filings. Since rising claims hints at a weakening employment sector, the larger the number the better the news it is for mortgage rates. Although, it is worth noting that because this is only a weekly snapshot, it usually takes a surprise increase or decline for the report to noticeably affect rates.
We also have the second of this week’s two Treasury auctions that may influence mortgage rates tomorrow. 30-year Bonds will be sold tomorrow with results also being posted at 1:00 PM ET. Today’s sale usually has more of an impact on mortgage pricing but the 30-year Bonds can also cause an intraday revision if the sale goes really strong or weak.