Mortgage backed securities (MBS) gained +21 basis points (BPS) from Friday’s close.
So why did they move upward?
Its was all news from across the pond:
– Factor 1 – China reported their biggest trade deficit in 2 years
– Factor 2 – Russia had troops on the ground in Ukraine but they are not in Russian uniforms and are reportedly occupying a town north of Crimea. Meanwhile, the U.S. says it supports Ukraine’s sovereignty and warns Russia not to claim part of it as its own.
The above sounds pretty scary, so it is interesting that the “flight to quality” was not greater yesterday.