Bond Market Update

Data Recon

• Industrial production increased 0.7% month-over-month in April (Briefing.com consensus: 0.2%) following an upwardly revised 0.3% decline (from -0.5%) in March. The capacity utilization rate was 76.1% (Briefing.com consensus: 75.7%), up from 75.7% in March. Total industrial production was up 1.4% year-over-year. The capacity utilization rate was 3.3 percentage points below its long-run average.
  • The key takeaway from the report is that it was underpinned by solid manufacturing output that was led by the production of durables. Excluding motor vehicles and parts, manufacturing output was up 0.3% month-over-month.
• Yield Check:
  • 2-yr: +8 bps to 4.07%
  • 3-yr: +9 bps to 4.12%
  • 5-yr: +11 bps to 4.23%
  • 10-yr: +11 bps to 4.57%
  • 30-yr: +10 bps to 5.11%