Treasuries at Best Levels Since Late May after Ukraine Headlines; MBS Lagging
Bond markets were already doing fairly well, but got another jolt of positivity after newswires hit that a Ukrainian fighter jet was shot down over eastern Ukraine. The market reaction is due to such headlines standing the chance to be the start of a war/invasion--a hot topic so far this week.
German Bunds fell to 1.06--another new all-time low--and Treasuries followed by breaking to levels not seen since late May. 10's are currently trading just under 2.44.
MBS have been lagging Treasuries both in the medium and short term--really, ever since the geopolitical risks stepped to the forefront in July. All that to say that MBS are NOT at their best levels since late May, and they'd need to gain another half point to make that claim.
That said, they're still up 6 ticks, which is enough for positive reprice potential.