Bond Market Update

Data Recon

• Industrial production declined 0.5% month-over-month in March (Briefing.com consensus: 0.1%) following an upwardly revised 0.7% increase (from 0.2%) in February. The capacity utilization rate was 75.7% (Briefing.com consensus: 76.4%), versus a downwardly revised 76.1% (from 76.3%) in February.
  • The key takeaway from the report is that the headline decline is not as bad as it looks when taking into account the large upward revision to industrial production in February, which effectively offsets the decline in March.
• Yield Check:
  • 2-yr: -1 bp to 3.76%
  • 3-yr: -1 bp to 3.77%
  • 5-yr: -2 bps to 3.88%
  • 10-yr: -1 bp to 4.27%
  • 30-yr: UNCH at 4.89%