December 7th, 2009 11:22 AM by Mel Samick
This week is fairly light in terms of the number of economic releases scheduled for release. There are only three on the agenda but one of them is considered to be very important and can heavily influence the markets and mortgage pricing. In addition, there are two Treasury auctions the middle part of the week that may hurt or help boost bond prices, depending on how strong of a demand there is for the sales. Since all of the relevant data is scheduled for release Thursday and Friday, the most movement in rates will likely be the middle or latter part of the week.Fed Chairman Bernanke will be speaking to the Economic Club of Washington D.C. at noon tomorrow. This is not considered to be an important speech and likely will not influence mortgage rates. However, whenever he does speak publicly, the possibility does exist that his words could rattle or rally the markets. I am not concerned about this one and don't feel there should be much attention placed on it.The two important Treasury auctions are the 10-year Note sale Wednesday and the 30-year Bond sale Thursday. Wednesday's auction is the more important of the two events and will likely influence mortgage rates more. Results of each sale will be posted at 1:00 PM ET. If they were met with a strong demand from investors, particularly international buyers, we should see afternoon strength in bonds and improvements to mortgage pricing those days.