Iran has stated that "Suspending uranium enrichment is an illegal and illegitimate demand ... and it will never happen". This, obviously, is fueling the flames of speculation that an international stand-off is lurking. There are many people making broad speculations due to "additional" United States aircraft carriers in the Gulf region.
This kind of international tension is usually enough of a catalyst to frighten markets into pursuing the perceived safety of bonds, but a suicide bomber's attack on a U.S. military base in Afghanistan seems to have added a little extra oomph.
Mortgage-backed securities (and mortgage rate shoppers) may be benefitting from this latest international ambiguity. However, with the number of market reports due Wednesday and Thursday, rates can, likely, be expected to bounce right back as traders will likely take their profits.
Source
Iran won't halt atomic work, snubs big powers
Edmund Blair
Reuters, February 27, 2007 9:19 a.m.
http://www.reuters.com/article/worldNews/idUSL2722031920070227
