Yesterday, Treasury prices dropped as initial jobless claims fell and existing home sales jumped more than predicted. Today, Treasuries are relatively flat to yesterday’s close. With no economic data, Treasuries and mortgage bonds will take their queues from equities.
The Mortgage Bankers Association announced today that mortgage activity jumped last week. For the week ending February 29, the number of Americans applying for a mortgage to purchase a home or refinance their current mortgage grew by 3% as compared to the previous week. Refinance activity was stronger, climbing 4.5% in the past week, while purchase activity increased 1.4%.
Everyone has squeezed all of the economic releases this week into the first 3 days of trading. The overall theme will be U.S. housing as each of the next 3 days will have data on the health of the housing market. Also of note this week are the $118 billion in Treasury auctions, which begins today at 1PM with $44 billion of 2-year notes.