Bond Market Update

Data Recon

• Industrial production increased 0.2% month-over-month in November (Briefing.com consensus 0.1%) following a 0.1% decline in October. The capacity utilization rate was 76.0% (Briefing.com consensus 77.4%) versus 75.9% in October. Total industrial production increased 2.5% yr/yr, while the capacity utilization rate was 3.5 percentage points below its long-run average.
  • The key takeaway from the report is that the uptick in November was driven entirely by mining output, which offset the absence of growth in manufacturing output and a 0.4% decline in utilities output.
• Yield Check:
  • 2-yr: +4 bps to 3.55%
  • 3-yr: +4 bps to 3.60%
  • 5-yr: +4 bps to 3.76%
  • 10-yr: +3 bps to 4.20%
  • 30-yr: +2 bps to 4.86%