- European government bonds closed in positive territory yesterday in the lower end of their respective session ranges. - The ECB's Weber said yesteday that more significant rate normalization is needed, noting that the ECB will dicuss further rate normalization within the coming months. Weber said that it is too early to give the signal that all is clear on inflation. Weber warned against neglecting risks in carry trades. Furthermore Weber said that the German economy, and the Euro economy overall, is seen slowing during the first quarter, but said that German growth may exceed 2.0% in 2008. - In focus today will be the manufacturing PMI figures in the Euro-Area. PMI figures are seen rising from January. Additional focus will fall upon the Euro-Area CPI estimate for the month of February, which is expected to come in unchanged from January's reading at 1.9%. - In new supply Spain will be selling 3.9% 2012 bonds today, while France will be selling up to â¬4.5B in bonds today; results are due at 4:30 ET and %;00 ET respectively. - Over in the UK gilts closed slightly higher despite the greater than expected Nationwide House Price data released early on during the session. - The BOE's Lomax said yesterday that inflation is seen slowing to its target rate by 2008. Furthermore Lomax sees the possibility of a sharp drop in inflation. - In focus today will be the Manufacturing PMI in the UK, which is expected to rise to 53.0 from 52.8 lat month. Additional focus will fall on final M4 money supply data for the month of January as investors will be looking for any revisions.