News of North Korea conducting another (apparently failed) ballistic missile test crossed the wires about 30 minutes prior to the NY close last Friday. 10 year Treasuries lost 2bps during this short window but FX markets were little moved (USD/JPY actually tracked north during the last half hour of trade) while US stock markets had already closed, ending the day down smalls. It not being a nuclear test (currently the main source of U.S. and China angst) it is unlikely to resonate in markets this week. Earlier, rather than respond in ritualistic fashion to the small downside surprise in Q1 US GDP (+0.7% against the +1.0% consensus) markets seemed to take more notice of the strength in the PCE deflator (headline 2.3% against 2.0% expected, core PCE deflator 2.0% as expected) and too the strong Q1 Employment Cost index (+0.8% Q/Q against 0.6% expected). Treasury yields were thus slightly higher post the data and prior to the North Korea news, though the US dollar was little moved.