Just a quick update on where we stand for those of you who rely primarily on the updates/alerts:

• North Korea claims to have tested a Hydrogen Bomb last night.  This could be fueling demand for safer-haven assets like bonds
• Non-Manufacturing data in China was weak to start the overnight session.  This pushed global stock indices lower and helped global bond markets.
• Oil and European bond yields also fell.
• The rally was in progress when ADP Employment data came out stronger than expected (257k vs 192k)
• The ADP data marked the end of the rally for the morning, but didn't cause as big of a reversal as might be expected of such a large beat.
• The 10am ISM data didn't really have much to say, as it came in very close to consensus (58.7 vs 58.4)

10yr yields and MBS have been in a consolidation patterns since the selling that followed the ADP data.  They're both still well into positive territory on the day.  The key risk is that the rally found its limit after ADP, so we either need to break those yields soon or prepare for afternoon weakness.