Ok, here we go. 

Just moments ago we got fresh headlines out of North Korea where a 2.9 magnitude earthquake was detected in an area where previous nuclear tests have been carried out. Here’s the official word from USGS:

This event occurred in the area of the previous North Korean Nuclear tests. The event has earthquake like characteristics, however, we cannot conclusively confirm at this time the nature of the event. The depth is poorly constrained and has been held to 5 km by the seismologist.

As of now, the USGS says it can’t confirm if this is natural or man-made, but markets aren’t waiting.

USD/JPY immediately dipped:

As did 10Y yields:

Amusingly, this hit the wires just as John Kelly said this:

Chief of Staff Kelly on North Korea: "American people should be concerned about a state that has developed a pretty good ICBM capability." pic.twitter.com/6MJCyNN07X

— ABC News (@ABC) October 12, 2017

Stay tuned…