- The European indices are currently trading in negative territory in the session on concerns that profit may be falling as Clariant reported earnings below estimates and Barclays indicated that they profit growth may begin to slow in the future. - European government bonds have been drifting lower since the open, and continue to trade near session lows on little news. Over in the UK gilts are trading sharply lower after the results of a gilt auction were released. The UK DMO announced the sale of £1.0B in 1.125% 2037 I/L gilts with a bid-to-cover of 1.97, well below the neutral bid-to-cover, which was called at 2.58. - German producer prices fell to their lowest level in two years on a y/y basis as energy prices declined. Excluding energy prices PPI rose by 3.1% y/y compared to 2.9% in January, the most in seven months. - Preliminary figures show that French GDP rose by 0.6% q/q as expected, and 2.2% y/y, just below estimates of 2.3%. French economic growth was fueled by growth in exports as well as corporate investment. - Preliminary M4 money supply data for the month of January was released in the UK overnight, showing that money supply grew more than expected both m/m and y/y at 0.9% and 13.0% respectively. Additionally, M4 sterling lending rose to £31.7B, its highest level on record. Note that policy makers have recently expressed concern that too much cash in the financial system could boost inflationary pressures. - The Spanish Finance Minister made a single comment overnight, noting that he sees ECB interest rates peaking at 4.00%. - Front month crude futures are currently trading sharply lower in the session after one news service took a comment by the Iranian president slightly out of context, quoting the president as saying that âIran is ready to halt its uranium enrichment programâ. Upon clarification it was learned that the Iranian president said that Iran is ready to halt its uranium enrichment program if the West halts its uranium enrichment program.