Remember, the higher the bond price when they are sold at auction is usually good for Mortgage rates as Bond prices and yields move in opposite directions. The higher the bond price and the success of the auction will usually result in better mortgage rates. :)
Here's a quick overview of Treasury securities:
- Treasury Bills, or T-Bills, are sold in terms ranging from a few days to 52 weeks. Bills are typically sold at a discount from the par amount (also called face value). For instance, you may pay $990 for a $1,000 bill. When the Bill matures, you would be paid $1,000.
- Treasury Bonds pay a fixed rate of interest every six months until they mature. They are issued in terms of 30 years.
- Treasury Notes, sometimes called T-Notes, earn a fixed rate of interest every six months until maturity. Notes are issued in terms of 2,3,5, 7 and 10 years.