Treasury Bonds Lose Ground After Economic Data
MARKETSCOPE : Treasury prices fell on Friday as investors took profits following Thursday's rally.
The 10-year Treasury note fell 06/32 during the day to price at 98-21/32 for yield of 4.674%.
Bonds prices barely reacted to a report that Industrial Production rose 0.7% in February, in line with expectations. Manufacturing production was flat in February after a 0.8% January increase. Capacity Utilization is 81.2% overall and 80.4% for manufacturing only; the 80% mark usually signals strong capital spending.
"The manufacturing sector proved weak during the month," says Drew Matus, Lehman Brothers, New York. "However, with manufacturing surveys suggesting a solid March, we think it is too soon to cry 'slowdown'."
Investors also shrugged off a report that the University of Michigan Consumer Sentiment index was flat at 86.7 in March for the preliminary print, the same as February. The result breaks a 3-month downturn.