Orlando Mortgage Blog

The third of this week's Fed auction happens today. Monday saw the 2-yr which went fairly well. Yesterday the 5-yr which required lower prices to move and drove yield up which saw lenders bump points 3 to 5 times during the afternoon for a final 50 bps cumulative hit by day's end. Today we'll see the results of the 7-yr after 1 PM. Considering that there have only been less than 50% of normal traders in the mix this week and many are adjusting their year end commission numbers, it'll probably next week before we see what the new normal will end up being in the near term on what are currently higher rates. This morning the 10-yr is within only 2 bps of yesterday's close at 8:55 so hopefully most of the belt adjusting yesterday afternoon has been done before today's auction results are announced.