After opening negatively yesterday, bonds improved in the afternoon as selling in equities intensified.  Today bonds are down slightly (down in price, slightly higher in yield) but rate sheets are pretty flat as the improvement yesterday and the deterioration this morning have essentially offset each other.   Stocks opened stronger but have lost some steam in midday trading and are currently closer to break even for the day with a slight positive bias.

In economic news, ADP reported that private sector payrolls increased by 217,000.  Analysts had been expecting a number close to 185,000.  The ADP report is not considered a very reliable predictor of the Labor Department's Non Farm Payroll report as there have been significant variations in ADP's figures and the Labor Departments.  Should Friday's non farm payroll report show a private sector payroll increase of over 200,000, analysts believe that could put upward pressure on rates.