Mortgage bond prices are lower mid-morning adding to the losses seen Monday afternoon. Rates are under pressure as mortgage companies sell bonds to cover borrowers who have locked in. This selling pressure pushes prices lower and yields higher.
Traders will spend the day watching stocks as they wait for the outcome of the Treasury auction of $24B in 10-year bonds. Market participants are hopeful this offering is as well received as yesterday’s 3-year outing. Auction results are expected by 1:15 pm ET.