The U.S. Treasury's announcement last week that it is thinking about restarting regular 30-year bond auctions - which came as a surprise after the Treasury announced earlier this year that it did not plan on reintroducing these bonds - is not expected to have a strong impact on the mortgage market unless intermediate rates increase accordingly and drive up mortgage rates.

"The potential return of the 30-year bond should have a modest impact on relative value of the 30-year MBS coupon stack," said David Goldman, head of Banc of America Securities debt research.

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