Tuesday, 17 September 2013

US manufacturing output up sharply, Treasury yields fall

A report from the Federal Reserve on Monday showed that US manufacturing production rebounded sharply in August, rising 0.7 percent after having fallen 0.4 percent in July.

Overall industrial production rose 0.4 percent in August after having been flat in the prior month.

A report from the Federal Reserve Bank of New York, however, showed that its general economic index eased to 6.3 in September from 8.2 last month.

Despite the growth in industrial production in August, US Treasury yields fell on Monday after Lawrence Summers withdrew his candidacy to become the next Federal Reserve chairman, leaving Fed Vice Chairman Janet Yellen as the leading candidate.

The 5-year yield fell seven basis points to 1.62 percent while the 10-year yield fell two basis points to 2.86 percent.

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