US housing data was higher than expectations in May as prospects of rising interest rates did little to dampen demand, while industrial production gained in fresh signs of a strengthening economy, figures released today showed.
US housing starts fell 0.7 per cent, a Commerce Department report said, but the drop was less than expected. But permits, an indication of builders' confidence in future business, rose to a 30-year high - a seasonally adjusted annual pace of 2.077 million units - as builders anticipated higher interest rates would not deter home-buyers. Permits for single-family homes tipped a record high 1.590 million annual pace.
In a separate release, output at US factories, mines and utilities rose 1.1 per cent in May, the biggest monthly gain in almost six years, the Federal Reserve reported.
US Treasury prices weakened on the robust economic data, but markets appeared to expect the Federal Reserve would stick to its stated intention to raise interest rates at a measured pace.
The benchmark 10-year Treasury note slipped 13/32, taking its yield to 4.74 per cent from 4.68 per cent. Stock prices were little changed.