Bond Market Update

Data Recon

• U.S. Treasuries have added to their starting losses with the long end remaining at the forefront of the weakness while the front end has continued resisting some of the pressure.
• Total industrial production increased 0.7% month-over-month in September, exceeding the 0.4% Briefing.com consensus. The prior month's revised reading showed that production increased 0.1% in August after initially being reported unchanged.
  • The key takeaway from the report is that production strengthened across manufacturing, mining, and utilities, yet capacity utilization remained below its long-run average, signaling firmer output without fully stretched industrial resources.
• Yield Check:
  • 2-yr: +2 bps to 4.77%
  • 3-yr: +2 bps to 4.86%
  • 5-yr: +4 bps to 4.94%
  • 10-yr: +4 bps to 5.13%
  • 30-yr: +3 bps to 5.46%