- The European indices are currently trading in positive territory in the session led higher by the energy sector as oil prices continue to climb higher.

- European government bonds continue to extend weakness seen yesterday after Trichet signaled that the ECB may raise rates within the next couple of month. EGBs are currently outperforming on the short end of the curve.  Over in the UK gilts are trading moderately lower, but sit in a tight range during what has been a quiet session. The Italian treasury sold ?‚¬4.0B in 5-year, 4.0% bonds, with an average yield of 4.17% with a bid-to-cover of 1.46, and ?‚¬2.5B in 30-year bonds with an average yield of 4.72%, and a bid-to-cover of 1.46.

- French consumer prices rise to 0.4% m/m in March from 0.2% in February and to 1.2% y/y from 1.0% in February. Harmonized CPI rose to 0.5% m/m in March from 0.2% in February, and remained unchanged at 1.2% y/y.

- Spanish consumer prices rose to an 11-month high of 0.8% m/m in March from 0.1% in February, and rose to 2.5% y/y from 2.4% in February. Core consumer prices slowed to 2.5% y/y in March, from 2.8% in February, the first slow down in three months.

- The final reading of Italian consumer prices for the month of March was unchanged from the preliminary reading, however harmonized consumer prices were revised up by one-tenth of once percent from the preliminary m/m and y/y readings.

- Euro-Zone industrial production rose to 0.6% m/m in February, from ??“0.2% in January, and to 4.1% y/y from 3.7% in January. The prior m/m was revised down to ??“0.5% from ??“0.2%, while the prior y/y was revised down to 3.4% from 3.7%.