Bond Market Update

Data Recon

• Industrial production increased 0.1% month-over-month in August (Briefing.com consensus 0.0%) following a downwardly revised 0.4% decline (from -0.1%) in July. The capacity utilization rate was 77.4% (Briefing.com consensus 77.4%), following a downwardly revised 77.4% (from 77.5%) in July. Total industrial production increased 0.9% 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 activity was driven in August by the production of motor vehicles and parts.
• Yield check:
  • 2-yr: unch at 3.53%
  • 3-yr: -1 bp to 3.49%
  • 5-yr: unch at 3.60%
  • 10-yr: +1 bp to 4.04%
  • 30-yr: +1 bp to 4.67%