Industrial Production and Capacity Utilization
Also released this morning was the moderately important Industrial Production data for October at 9:15 AM ET. It revealed a surprising decline in output of 0.8% at U.S. factories, mines and utilities. Forecasts were calling for a 0.4% decline. Since bonds become more appealing to investors during weaker economic conditions, we should consider today’s release favorable for rates as it further fuels concerns about the manufacturing sector of the economy. Unfortunately, this report is thought of as only moderately important or we would have seen a stronger reaction to the news.