- European government bonds closed lower yesterday following a soft start, and a slight downward plunge upon the release of a stronger than expected IFO reading in Germany. - In focus today will be the release of German GfK consumer confidence for the month of April due out at 2:00 ET. Consumer confidence is expected to rise to 4.5 in April from 4.4 in March. Also in focus on the economic front will be the release of February M3 data in the Euro-Area due out at 4:00 ET. Additional focus will fall on comments from the ECB's Gonzalez-Paramo who will be speaking in Madrid at 4:30 ET, as well as the ECB's Trichet and Orzonez who are scheduled to speak in Valencia at 11:30 ET. - In new supply Italy is set to sell â¬2.0B in 5-year I/L bonds; results are due just after 5:00 ET. Germany is set to sell 5-year notes today as well; results are seen just after 5:30 ET. - Gilts closed lower in the UK yesterday tracking developments elsewhere. Gilts did not show any major response to comments from the Bank of England yesterday as members showed slight disparities in their opinions and beliefs on a series of topics. - In focus today will be the release of nationwide house prices in the UK due out at 2:00 ET. House prices are expected to remain unchanged at 0.7% m/m, and to decline to 9.6% y/y from 10.2%. Investors will also be watching final Q4 GDP for any revisions. The final reading on Q4 GDP is scheduled for 4:30 ET. - Treasuries are currently trading modestly higher today, gaining slight upside from lower stocks as well as tensions in Iran. Investors will be watching for comments from the Fed's Moskow who will be speaking on US monetary policy in Shanghai at 4:30 ET, and the Fed's Bernanke who will be testifying on the economic outlook in the US at 10:30 ET.