Market Commentary

Updated on June 14, 2024 10:04:41 AM EDT

Yesterday's 30-year Treasury Bond auction went almost as well as Tuesday's sale. The benchmarks indicated a fairly strong demand from investors, meaning there still is a good appetite for long-term securities. We saw bonds improve slightly after results were announced at 1:00 PM ET, but not enough to cause widespread improvements to mortgage pricing. It appears lenders opted to wait for this morning's pricing to reflect that move.

The University of Michigan posted their preliminary Index of Consumer Sentiment for June at 10:00 AM ET this morning. It revealed consumer confidence in their own financial and employment situations was sharply softer than expected last month, falling from April's 69.1 to 65.6 for May. Forecasts had the index rising noticeably to 73.0, meaning consumers are less likely to spend than many had thought. That is good news for bonds and mortgage rates because weaker consumer spending restricts economic growth.

Next week has a handful of relevant economic reports scheduled, one of which is extremely influential. That would be the Retail Sales report early Tuesday morning. The week starts light with nothing of importance set for Monday and the U.S. financial markets will be closed Wednesday for the Juneteenth recognition. In addition to the data, there is also another Treasury auction and a few Fed-member speaking engagements scheduled. Look for details on all of next week's activities in Sunday evening's weekly preview.

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