Investors were closely watching Wednesday's 10-year Treasury Note auction and Thursday’s 30-year Bond auction to see the level of demand. High demand, which is reflected in the purchasing of Bonds and Treasuries, can push prices higher and yields or rates lower.

Weak demand, on the other hand, can signal that investors think yields will continue to move higher, which can have a negative effect on rates.

Wednesday’s 10-year Note auction was met with very strong demand. It seemed that traders wanted to benefit from the spike in yields which followed the misleading Jobs report, as expected lower inflation data that will be released this week will likely send yields lower. While this strong auction demand boosted Mortgage Bonds Wednesday afternoon, the poor demand at Thursday’s 30-year Bond auction added downside pressure to Bonds.