Updated on July 8, 2020 10:09:16 AM EDT
There is no economic data set for release today that we need to be concerned with. We do have the 10-year Treasury Note auction taking place though. These sales don’t directly impact mortgage rates but can affect the broader bond market that trickles into mortgage bonds. If investor demand was high for the securities, we may see bonds rally during afternoon trading. However, weak interest in the sales could lead to bond selling and a possible increase in mortgage rates later today. Results will be posted at 1:00 PM ET, meaning if there is a reaction, it will come during early afternoon hours.
Tomorrow’s sole economic report is last week’s unemployment update at 8:30 AM ET. It is expected to show that 1.35 million new claims for unemployment benefits were filed last week, down from the previous week’s 1.427 million filings. A high number of new claims signals a weak employment sector. Therefore, the larger the number, the better the news it is for mortgage rates.
Also tomorrow is the 30-year Bond auction. As with today’s sale, results will be posted at 1:00 PM ET, making this an afternoon event tomorrow. The 10-year Note sale usually influences rates a little more than the 30-year Bond auction does, but both are considered moderately important.
©Mortgage Commentary 2020