June IP/CAP-U BTE

That's a lot of acronyms to digest this early on a Monday morning, I know. LOL!

But to sum up: Both industrial production (IP) and capacity utilization (CAP-U) were better than expected (BTE). IP was up 0.8% in June, double the consensus forecast from Briefing.com. The CAP-U reading was 82.4%, much higher than the 81.9% forecast. Coming in the same week as the producer price index, consumer price index, and Ben Bernanke's testimony on the economy, these numbers should hit bonds (send prices lower, rates higher). The production figure helps alleviate some of the market's growth concerns, while the higher rate of capacity utilization implies more inflationary pressure.