By Ben Eisen, MarketWatch NEW YORK (MarketWatch) — Treasury prices slid Wednesday after data showed industrial production topped forecasts, lifting the market’s economic outlook as investors continue to take the temperature of the economy. Industrial production rose by 0.7% in March, comparing favorably with the 0.5% reading expected by Wall Street. February’s data were revised higher to show a 1.2% gain, the biggest jump since May of 2010. “The overall tone of this report was very encouraging, with the buoyancy in the manufacturing sector reaffirming our very constructive view on the economic growth performance during the last few months of the quarter,� said Millan Mulraine, deputy head of U.S. research & strategy at TD Securities, in a note. After the data, the 10-year Treasury note 10_YEAR +0.99% yield, which rises as prices fall, was up 2 basis points on the day at 2.650%. The 30-year bond 30_YEAR +0.72% yield rose 2.5 basis points to 3.487% and the 5-year note 5_YEAR +1.23% yield edged up 1.5 basis points to 1.635%. Earlier, Treasurys briefly cut losses after data showed U.S. housing starts rose by 2.8% in March to an annual rate of 946,000. Economists polled by MarketWatch had expected a 990,000 reading. February’s rate of starts was revised upward to 920,000. The market is looking for signs of a rebound in economic data following cold winter weather that has been blamed for a slowdown in growth. The pace of growth is likely to inform the Federal Reserve’s decision about when to raise its key lending rate. The central bank has said it will remain committed to a near-zero policy rate until inflation picks up and labor market concerns subside. Fed Chairwoman Janet Yellen is scheduled to speak Wednesday shortly after noon Eastern Time at the Economic Club of New York, where she may opt to clarify the central bank’s outlook on the economy and its monetary policies. At 2 p.m., the Fed will release its Beige Book, which contains anecdotes about the economy across the different regions of the country.

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