Commentary: Different day - same story.
Mortgage interest rates are once again fluttering around in a relatively tight trading range - driven by the opposing forces of a safe haven bid from Middle East turmoil and improving domestic economic data.
Against this backdrop Uncle Sam will be conducting a three-part, $66 billion dollar Treasury auction. The Treasury Department has plans to sell $32 billion of 3-year notes today, $21 billion of 10-year notes tomorrow and $13 billion of 30-year bonds on Thursday. The auctions will conclude at 1:00 p.m. ET on each respective day - and I'll post results on my website as soon as possible once the final gavel falls.
Some analysts argue that the brewing unrest in Saudi Arabia will drive more foreign investors to this week's Treasury auction. If so, the increased demand for high-quality dollar denominated fixed-income assets will almost certainly prove supportive for the prospects for steady to perhaps fractionally lower mortgage interest rates. Others say that the threshold of safe-haven demand has already been reached. If this assessment proves accurate, mortgage interest rates will be vulnerable to a move to higher levels. The "tilt-point" here will almost certainly be determined by the trend trajectory of oil prices.
THE MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
