Mortgage rates are sideways this morning after the nice movement we saw yesterday. So far this morning, after all the reports that came out, we are seeing MBSs flat and no movement in the 10yr, which is at 1.56%.

Yesterday I told you the OPEC meeting would end as usual a failure, and it looks like I was correct. After all the he said/she said rhetoric, oil prices were higher yesterday, this morning down $1.09 after increasing $0.83 yesterday.

July Case/Shiller home price index came in a little lower than anticipated. September consumer confidence from the Conference Board came in with the highest read this year and the highest since August 2007. As noted yesterday these measurements of confidence and sentiment are subject with the election swings until it's over. The reaction took all of the MBS price gains away.

This afternoon Treasury will sell $34B of 5yr notes. If you recall, I mentioned that the 2yr note saw weak demand.

Not much news other than the talk this morning on who won the debate. I am not going to go there. Frankly, that US interest rates are declining and recently the stock markets globally are slipping. I have no idea whether the elections are influencing markets yet. The US economy is slowing based on a high number of recent data points (ISM indexes, retail sales, auto sales, housing starts and permits, new home sales, existing home sales, worker productivity).

I am not expecting any further movement until after the auction, and unless it steers it one way or another, I expect to see very little change today from yesterday.