- European government bonds closed higher yesterday, but were off of their best levels after the release of a stronger than expected manufacturing survey in the US. - The ECBâs Stark said in an interview that was published overnight that demand for money is not the sole driver of money supply. Stark said that the ECB is currently monitoring what drives money supply growth, and is currently looking to sharpen analysis on M3 results. Stark sees no need to amend the M3 reference value of 4.5% growth. - In focus today will be the release of German retail sales for the month of January, which are expected to drop sharply from December. Additional focus will fall on Euro-Zone PPI, which is seen rising to 0.2% from 0.0% in December, and falling to 3.1% y/y from 4.1% in December. The data is due at 2:00 ET and 5:00 ET respectively. - Over in the UK gilts closed slightly higher, but were off of earlier highs, tracking their European counter parts. - The UK manufacturing PMI for the month of February rose to its highest level in over 2 years yesterday. Final M3 figures for the month of January were also confirmed at 0.9% m/m, and 13.0% y/y. - The Telegraph is running a story regarding the March 8 interest rate decision today. According to economists, despite the recent data, which shows that the publicâs appetite for borrowing and spending is still strong, the Bank of England is unlikely to raise interest rates. While a recent pool of economist showed that the BOE is expected to raise rates to 5.50% by the summer, a separate survey of 30 economists showed that only 4 for them expect that the BOE will raise rates next week. - In focus today will be the release of February construction PMI in the UK, which is expected to fall to 57.5 from 57.9 in December. The data is due out at 4:30 ET.