- The European indices are currently trading lower in the session, but are off of their worst levels ahead of key data to be released in the US this morning.

- European government bonds are currently trading slightly lower in the session, giving up small gains made after regional CPI data in the German states of Hesse and Brandenburg indicated that inflation will remain below the key 2.0% level for the month of April. Despite a little bit of strength in the EGB's, gilts are currently trading lower in the UK. The Italian treasury sold ?ぎ2.5B in 3-Year 4.00% bonds with an average yield of 4.15% and a bid-to-cover of 2.72 overnight; the neutral bid-to-cover was called at 1.54; The previous bid to cover was 1.5. The Italian also sold ?ぎ3.5B in 7-Year Floating Rate Notes with an average yield of 4.14% and a bid-to-cover of 1.62, as well as ?ぎ3.0B in 10-Year 4.00% bonds with an average yield of 4.37% and a bid-to-cover of 1.5; the neutral bid-to-cover on the 10-year auction was called at 1.42; The previous bid-to-cover was 1.4p

- French consumer confidence for the month of April rose slightly more than expected to -20 from the prior reading of -22. March producer prices remained unchanged in France at 0.3% m/m, but rose to 2.1% y/y. Producer prices were expected to decline to 1.9% from the prior month's reading of 2.0%/

- Spanish unemployment for the Q1 rose to 8.47%, against expectations for the reading to remain unchanged from Q4. Preliminary harmonized CPI for the month of April remained unchanged at 2.5%; CPI was expected to decline slightly to 2.4% in April.

- Italian business confidence for the month of April rose to its highest level since January of 2001 at 98.2, above estimates of 94.5. Italian hourly wages for the month of March were in line with analysts estimates of 0.3% m/m, and 2.6% y/y.

- The volatile Swedish retail sales jumped much more than expected during the month of March to 1.4% m/m, above estimates of 0.8%, and to 9.5% y/y, above estimates of 7.9%. The rise in Swedish retail sales was led by a rise in consumer spending resulting from warmer weather, as well as tax cuts.

- The Euro-Zone current account, which was expected as a surplus of ?ぎ1.1B came in as a deficit of ?ぎ5.3B for the month of February, while the unadjusted current account, which was expected as a surplus of ?ぎ1.6B, came in as a deficit of ?ぎ7.2B.

- Regional CPI data from the German states of Hesse and Brandenburg showed the y/y CPI declined to 1.8%, and 1.7% respectively from the prior reading of 1.9% (for both regions), indicating that German CPI will probably remain below the 2.0% key level during the month of April. CPI from the state of North Rhine Westphalia, the most heavily weighted state in the overall CPI calculation, rose to 2.0% in April from 1.% in March.

- Swiss National Bank's Roth said overnight that it is hasty to assume that weakness in the Swiss Franc will last. Roth pointed out that, in the past, the Franc has overreacted in times of uncertainty. Roth followed saying that the SNB will be vigilant to the risk of abrupt changes, and will raise interest rates as needed.

- The ECB's Noyer said overnight that inflation expectations in the Euro-Zone are anchored, noting that Euro-Zone countries benefit from low rates. Noyer also said that M3 demand shows clear signs of instability.