By James Brooks

The bond market is down 5/32 (1.79%), which should push today's mortgage rates higher by approximately .125 of a discount point.

This morning has nothing of importance set for release, but we do have a couple of afternoon events taking place that have the potential to influence mortgage rates. First up is the 10-year Treasury Note auction results at 1:00 PM ET. If today’s sale was met with a strong demand from investors, we should see the broader bond market react positively, possibly leading to a slight improvement in mortgage pricing before the end of the day. On the other hand, a weak interest in the securities could cause bond selling and an upward revision to rates. Today’s sale will be followed by tomorrow’s 30-year Bond auction.

Next will be the minutes from the most recent FOMC meeting at 2:00 PM ET. These may move the markets or could be a non-factor, depending on what they say. The key points traders are looking for are concerns ov. ...