Bond Market Update

Data Recon

• Total industrial production increased 0.9% month-over-month in December (Briefing.com consensus 0.3%) following an upwardly revised 0.2% increase (from -0.1%) in November. The capacity utilization rate jumped to 77.6% (Briefing.com consensus 77.0%) from an upwardly revised 77.0% (from 76.8%) in November. Total industrial production increased 0.5% yr/yr while the capacity utilization rate was 2.1 percentage points below its long-run average.
  • The key takeaway from the report is that industrial production showed some rebound verve after being depressed in recent months by the hurricanes and the Boeing strike.
• Yield Check:
  • 2-yr: +1 bp to 4.25%
  • 3-yr: +1 bp to 4.31%
  • 5-yr: +1 bp to 4.40%
  • 10-yr: -1 bp to 4.60%
  • 30-yr: -2 bps to 4.83%