Bond Market Update

Data Recon

• Industrial production increased just 0.1% month-over-month in June (Briefing.com consensus: 0.3%) following an unrevised 0.1% increase in May. The capacity utilization rate was 76.1% (Briefing.com consensus: 76.2%), unchanged from a downwardly revised 76.1% (from 76.2%) in May. Total industrial production was up 1.1% year-over-year. The capacity utilization rate is 3.3 percentage points below its long-run average.
  • The key takeaway from the report is that there was no increase in manufacturing output, something that hasn't happened since January.
• Yield Check:
  • 2-yr: -3 bps to 4.13%
  • 3-yr: -3 bps to 4.17%
  • 5-yr: -4 bps to 4.24%
  • 10-yr: -4 bps to 4.53%
  • 30-yr: -4 bps to 5.06%