Mortgage rates have extended their losing streak to four days. On average, loan pricing is another 4.4bps worse today. Week over week, rebate has been reduced 6.5bps with the most sizable subtractions seen in par note rates. Loan pricing was most aggressive last Tuesday afternoon so a week over week comparison will be more relevant tomorrow.

Rate sheet influential MBS coupons are off their lowest prices and widest spread levels of the session. The November FNCL 4.0 is currently +0-03 at 102-01. I've got the production MBS coupon marked at 3.694%. I did notice a few of the mid-majors and regionals were priced excessively weak on first run. With MBS prices off their lows of the day, we might see some reprices for the better if MBS can maintain positive progress.

Stocks and bonds are both rallying, ignoring each other again (a theme lately). The long end of the yield curve is leading the way in the bond market with the 2s/10s curve 3bps flatter to 225bps wide. The 10 year note is +7/32 at 99-06 yielding 2.717% (-2.6bps). The energy sector is pushing equities higher with a 1.60% gain. Financials are +1.25%. S&P futures are +13.25 at 1133.50 (+1.1% in cash index).

Not much action in the markets on President Obama's town hall meeting....