The bond market had another solid day today, although that wasn't necessarily destined to be the case from the start.  Yields were slightly higher in the first half of the overnight session and didn't begin to recover until equities futures  moved lower at the start of European trading hours.

Bonds actually pushed back in a weaker direction at the 8:20am CME open, 5 minutes after an equivocal reaction to an equivocal ADP Employment report, but the losses were short-lived.  As stocks continued to drop, bonds increasingly stepped into the role of "safe-haven" and happily soaked up some of the cash that was seeking the sidelines ahead of 2 more big days of econ data.

As is typically the case for a flight-to-safety bond rally, Treasuries fared better than MBS.  Regardless of the motivation, that still likely would have been the case simply because the mortgage market has had quite enough when it comes to bond rallies and lead changes over the past 2 months.  

Tomorrow brings the non-manufacturing version of the report that rocked markets yesterday (ISM PMI).  It hits at 10am ET and has just as much potential to cause a stir as its counterpart.