UPDATE 1-U.S. June industrial production up 0.5 pct

(Reuters) - WASHINGTON, July 17 - U.S. industrial output rose
by a slightly more-than-expected 0.5 percent in June as
production for automobiles surged 2.5 percent during the month,
a Federal Reserve report on Tuesday showed.




Analysts polled by Reuters were expecting to see a 0.4
percent rise in June. Total output at the nation's factories,
mines and utilities fell by a revised 0.1 percent in May
compared with a flat reading initially.


Read more at Reuters.com Economic News

TREASURIES-Tame inflation keeps bonds firm

(Reuters) - Softer-than-expected figures on U.S. industrial output and
capacity utilization also contributed to the firmer tone in
bond prices.




Coming at the end of a topsy-turvy week, the reports
pulled benchmark yields further back from five-year peaks hit
on Wednesday, though 10-year yields were still on track to end
the week higher after strong selling in earlier sessions.


Read more at Reuters.com Bonds News