Interest Rate Roundup

Wednesday, August 05, 2009

Treasury keeps increasing the size of its debt auctions

The Treasury Department just released the details of its next round of debt auctions. It looks like we'll get $37 billion in 3-year notes on Tuesday, $23 billion in 10-year notes on Wednesday and $15 billion in 30-year bonds on Thursday. Treasury also admitted that auction sizes will rise "gradually" in the medium term, and that it may get rid of 20-year TIPS auctions in favor of 30-year TIPS sales. The debt ceiling of $12.1 trillion will likely get tagged in the final quarter of 2009, but as we all know, that "ceiling" is a joke. Congress always increases it whenever necessary. Bond futures recently tagged the morning lows, and were down about 26/32 at last check.


  • Question: Our escrow closing is Aug 18 so we need to lock in our 30 yr fixed interest rate asap. We're watching the news about the fed auction of treasury notes (Tuesday 3 yr and Wed 10 yr) & bonds & understand that if the bond prices go up, mortgage rates may come down, correct? Should we watch both the Tues & Wed auction results or should we have the info we need to lock in Tues & not wait for Wed? We're confused. Could you please help us out with a little advice? We don't want to wait until Wed & pay a higher mortgage interest rate just because we misread the sign on Tues as to the results of the Tues auction. Help!! Your thoughts asap would be greatly appreciated. Thanks!!

    By Anonymous HomePurchaserWashingtonState, at August 11, 2009 at 1:07 AM  

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