Summary: US industrial output up 0.9% in May, greater than expected; up 0.4% over past 12 months; US Treasury yields fall; rate-cut expectations firm; capacity utilisation rate jumps to 78.7%. The Federal Reserve’s industrial production (IP) index measures real output from manufacturing, mining, electricity and gas company facilities located in the United States. These sectors are thought to be sensitive to consumer demand and so some leading indicators of GDP...