- European government bonds booked a gain last week as investors flocked to fixed income amongst uncertainty in the equity and commodities markets after a worldwide drop in equities led by China sparked a domino effect amongst the major equity markets. Amongst increased equity market volatility EGBs gained further support from some favorable economic data last week. - With no major economic releases, no new supply, and no central bank speakers on the schedule, the focus in today's session will fall upon the February service PMI data, which, in all cases except Italy, is expected to fall when compared to January. - Further out in the week the focus will lie on Thursday's interest rate decision where the ECB is expected to raise interest rates by 25 basis points. Investors will be looking for any signs as to whether or not the ECB will raise interest rates in 2007. - Over in the UK gilts also booked a gain for the week amongst increased market volatility. - With no major releases scheduled in the session, the focus today will fall on the February services PMI, which is expected to fall slightly from January. - Further out in the week the focus will fall upon the Bank of England's interest rate decision, where the BOE is expected to keep rates unchanged at 5.25%. A recent survey of 65 economists showed that approximately 14% of those surveyed expect a 25 basis point interest rate hike this week.