Updated on February 23, 2017 10:34:59 AM EST
We had the first of this week’s two relevant Treasury auctions take place yesterday. The 5-year Note sale did not go very well with several benchmarks pointing towards weak interest in the securities. This news didn’t cause bonds to slide as they were already losing ground before results were posted at 1:00 PM ET. However, the news certainly did not help the cause either. It also gives us little to be optimistic about in today’s 7-year Note auction. Results will also be posted at 1:00 PM ET, so any reaction will come during early afternoon trading. Strong investor demand is good news for the broader bond market and mortgage rates.