More of the same.

In the absence of any economic data to guide sentiment - most mortgage investors will likely spend the balance of the day putting the finishing touches on their risk management strategies in front of this week's $99 billion, three-part Treasury debt auction. Uncle Sam will be peddling $35 billion of 2-year notes tomorrow, $35 billion of 5-year notes on Wednesday and $29 billion of 7-year notes on Thursday. Given the recent increased volatility surrounding domestic and global headlines from the financial markets -- investors are very uncertain about what the correct levels for yields should currently be. Investor nervousness in front of the coming Treasury auctions seems unusually high. The "so what" factor is direct and straightforward -- nervous investors are not normally inclined to push mortgage rates notably lower. Heads up.