Bond Market Update

More data

• Total industrial production decreased 0.3% month-over-month in September (Briefing.com consensus -0.1%) following a downwardly revised 0.3% increase (from 0.8%) in August. The capacity utilization rate fell to 77.5% (Briefing.com consensus 77.9%) from a downwardly revised 77.8% (from 78.0%) in August. Total industrial production declined 0.6% yr/yr while the capacity utilization rate was 2.2 percentage points below its long-run average.
  • The key takeaway from the report is that industrial production in September was pressured by two extraordinary factors, which implies a rebound in growth should follow as those extraordinary factors find correction. The Boeing strike held back growth by an estimated 0.3% and the effects of Hurricanes Helene and Milton subtracted an estimated 0.3%.
• Yield check:
  • 2-yr: +3 bps to 3.97%
  • 3-yr: +4 bps to 3.89%
  • 5-yr: +5 bps to 3.89%
  • 10-yr: +5 bps to 4.07%
  • 30-yr: +5 bps to 4.35%