Bond Market Update

Data Recon

• Industrial production increased just 0.1% month-over-month in May (Briefing.com consensus: 0.2%) following an upwardly revised 0.9% increase (from 0.7%) in April. The capacity utilization rate was 76.2% (Briefing.com consensus: 76.2%), up from 76.1% in April. Total industrial production was up 1.7% year-over-year. The capacity utilization rate was 3.2 percentage points below its long-run average.
  • The key takeaway from the report is that manufacturing output moved sideways in May, reflecting a cooling down after some solid activity in April.
• Yield Check:
  • 2-yr: -5 bps to 4.04%
  • 3-yr: -4 bps to 4.09%
  • 5-yr: -3 bps to 4.17%
  • 10-yr: -4 bps to 4.45%
  • 30-yr: -2 bps to 4.96%