Mortgage backed securities (MBS) prices are higher (rates lower) as stock markets are falling and the Fed prepares to buy U.S. debt twice this week.

The DOW, NASDAQ & S&P 500 are all down over 2% pulling money out of equities and into fixed income assets like MBS.

The Fed will purchase longer term notes on Tuesday and shorter dated securities on Thursday as it battles the longest recession since the 1930's. Leading Economic Indicators fell 0.3% in March offering no signals of improvement for the economy. Components showing declines are building permits, vendor performence, factory workweek and jobless claims.

Showing improvement in March were the interest rate spread and money supply, reflecting active government intervention to stimulate the economy. The report confirms the recession has been long with no end in sight though whether its deepening in intensity is still uncertain.