And 1.21 bln euros of 6-month bills, for a total of 1.93 bln. Top end of 1.0-2.0 billion target.

3 month bid to cover ratio 7.6, better than 3.5 at previous auction

6 month bid to cover ratio 3.3, worse than 5.6 at previous auction

3 month average yield 0.634% vs 0.381% at previous auction

6 month average yield 1.580% vs 0.836% at previous auction

EUR/USD sits at 1.3165, 10 pips above where it was when I arrived.

The monotony continues.

Spanish/German 10 year govt bond yield spread sits at 431 bps,  fractionally narrower than the 436 I jotted down first thing.

–Mar PSNB-X Stg18.174bn vs Stg17.951bn in Mar 2011
–2011/2012 PSNB-X Stg125.974bn vs Stg136.841bn in 2010/11

LONDON (MNI) – Public Sector Net Borrowing hit its highest level
since November 2010 in March, but was bang-in-line with the latest
forecast from the Office for Budget Responsibility, figures released by
National Statistics showed on Tuesday.

While borrowing for March was higher than expected, there were
downward revisions to earlier data bringing it broadly in line with the
market expectation. An undershoot of Stg3.5 billion on the central
government net cash requirement, CGNCR, means the Gilt remit for 2012/13
will likely be revised downwards.

PSNB-X (which excludes financial sector interventions) rose to
Stg18.174 billion in March, up from Stg17.951 billion in the same month
a year earlier. This was above the median for Stg16.5 billion and the
highest March outturn since 2010. There was, however, a downward
revision to earlier data from April 2011 to February 2012 of Stg2.2
billion.

For the 2011/12 financial year, PSNB-X came in at Stg125.974
billion, down from Stg136.841 billion in 2010/11, and in line with the
OBR’s forecast of Stg126 billion made last month.

The data revealed that government departmental spending fell for
the first time since 1955 in the latest financial year, clearly showing
that the government’s plans to cut back on spending are having a real
impact.

The CGNCR fell to Stg126.361 billion in March from Stg139.661
billion in March 2011, below the OBR’s forecast of Stg129.9 billion.
This Stg3.5 billion overfund suggests the Debt Management Office will
reduce planned Gilt issuance for the current financial year by a similar
amount.

National Statistics said that the wind up of the Bank of England’s
Special Liquidity Scheme had led to a drop in corporation tax receipts
in March of Stg0.7 billion. In April, it is estimated that Stg2.3
billion will be transferred from the BOE to the Treasury which will
improve the PSNB-X by the same amount.

–London bureau: 0044 20 7862 7491; email: puglow@marketnews.com

[TOPICS: M$B$$$,MABDS$]

UK DATA: Mar PSNB-X Stg18.174bn vs Stg17.951bn in Mar 2011
–2011/2012 PSNB-X Stg125.974bn vs Stg136.841bn in 2010/11
———————————————————————–
PSNB-X was higher than expected in March but down revisions to
previous data mean for 2011/12 it was in line with the OBR’s Stg126 bn
forecast. An undershoot of over Stg3.5 billion on the CGNCR also means
the Gilt remit for 2012/13 will likely be revised downwards. The data
revealed that government departmental spending fell for the first time
since 1955 in the latest financial year, clearly showing that the
government’s plans to cut back on spending are having a real impact.
National Statistics said that the wind up of the Bank of England’s
Special Liquidity Scheme had led to a drop in corporation tax receipts
in March of Stg0.7 billion. In April, it is estimated that Stg2.3
billion will be transferred from the BOE to the Treasury which will
improve PSNB-X by the same amount in April.

Worse than Reuters median forecast of 16.0 bln.

 Highest since £20.4 bln in November 2010.

On the plus side, February PSNB revised down to £12.2 bln from previous £15.2 bln.

UK cumulative April-March 2011/2012 PSNB ex-financial sector interventions 125.974 bln vs govt target of 126 bln.

Sell 995 mln euros of January 15  2037 4.0% DSL.

Total of 1.995 bln, middle of 1.5-2.5 bln indicative range.

• BOJ may extend maturity of Japan govt bonds it buys under its asset-buying scheme to 3 years from 2 years

Reuters reporting.

USD/JPY touch firmer on the headlines, presently at 81.15.

Guess Deutsche will be happy with GBP/JPY trading around session highs, presently at 131.02.

Down at 72 bps from 78 I jotted down first thing.

French/German 10 year govt bond yield spread narrows to 140 bps from early 145.

EUR/USD sits at 1.3170, up 15 whole pips since I sat down!!

It’s all go

Talk sell orders clustered 1.3190/05.

I think they’ll be buy stops through 1.3210, but no confirmation of such as yet.

BERLIN (MNI) – The German government sees GDP growth of between
0.6% to 0.9% this year, German daily Die Welt reported Tuesday citing no
sources for its claim.

For next year, the government projects growth between 1.6% to 1.9%,
the paper reported.

The government’s standing forecast dating from January is for 0.7%
growth this year and 1.6% next year. German Economics Minister Philipp
Roesler is to present the government’s new forecasts on Wednesday.

The president of the German Industry Association (BDI), Hans-Peter
Keitel, on Monday reaffirmed the association’s forecast that GDP growth
of 1% is achievable this year.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$X$$$,M$G$$$,MGX$$$,M$$CR$]

Dutch re-opens 3.75% July 2014 DSL and 4.75% January 2037 DSL issues

Target amount 1.5-2.5 bln euros

Results due around 08:20 GMT

Spanish to re-open 3 month and 6 month Letras maturing July 30 and October 19 respectively

Target amount 1.0-2.0 bln euros

Results due around 08:40 GMT

Italians re-open 2 year zero coupon  January 2014 CTZ

Target amount 1.5-2.5 bln euros

Also re-open 2.10% September 2017 BTPei and 2.35% September 2019 BTPei

Target amount 500 mln- 1.0 bln euros

Results all due around 09:15 GMT

FRANCE DATA: 2Q mfg demand outlook firmer at +4 vs 1Q -5
–But 2Q foreign mfg demand outlook weaker at -6 vs 1Q +5
–March mfg capacity utilization 81% as in January
–2Q sa mfg PPI seen +1.0% q/q; 1Q was +0.9% q/q

FRANCE DATA: April consumer morale 88; March 87
– Above expected; MNI analysts survey median forecast 87
– Buying-propensity down one point
– Future inflation worries down one point
– Jobless fears up two points
– See MNI MainWire for details

Up from 87 in March and better than Reuters’ median forecast of unchanged 87.0.

New session high for EUR/USD at 1.3176!!!  Yipeeeeee

It’s all taking place in slow motion again though

Conviction?  Not a lot…….

Ooooops.

• BOJ should increase monthly JGB purchases by 20%
• Should target 2% inflation

Nakahara says BOJ should increase bond purchases by a  fifth and double inflation target at its next meeting on Friday.

If they did, that would make the USD/JPY bulls very happy (I’m sayin that, not Nakahara)

USD/JPY up marginally at 81.00 from the 80.85 that greeted me first thing.

From revised 0.9 in February (prev 0.87)

Elsewhere Swiss trade balance 1688 mln in March.   Swiss watch exports rose nominal 15.3% y/y.

EUR/CHF steady at 1.2018.

I was also reading the other day about the steep rise in the number of UK food banks.

Dutch selling 2014 and 2037 bonds today.  Will be interesting to see how the auctions go given recent developments.

Spain and Italy also go to the well.  We’ll be putting up details later.

So says the mighty Deutsche Bank.

And the Big German should know, shouldn’t it?

CPI (flash) HICP (flash)
– March – – March -
%mom %yoy %mom %yoy

Median Forecast 0.1 2.0 0.2 2.2
High forecast 0.2 2.1 0.2 2.3
Low forecast -0.1 1.8 -0.1 1.9
Previous period 0.3 2.1 0.4 2.3
-
Number of responses 11 13 6 6
-
4Cast 0.2 2.1 0.2 2.2
ABN AMRO n/a 2.0 n/a n/a
Barclays Cap. 0.1 2.0 0.2 2.3
BNP Paribas -0.1 1.8 -0.1 1.9
Capital Economics n/a n/a 0.0 2.1
Commerzbank 0.1 2.0 n/a n/a
Credit Agricole 0.1 2.0 n/a n/a
DZ Bank 0.0 2.1 n/a n/a
ING 0.2 2.1 n/a n/a
LBBW n/a 2.1 n/a n/a
Morgan Stanley 0.1 2.0 n/a n/a
Soc. Generale 0.1 2.0 0.1 2.2
Standard Chartered 0.2 2.1 n/a n/a
UBS n/a n/a 0.2 2.2
West LB 0.2 2.1 n/a n/a
—————————————————————–
* Median is based on above forecasts and is not intended to represent
a consensus.

The survey was conducted on Friday, April 20.

[TOPICS: MTABLE,M$GDS$,M$G$$$,M$XDS$,M$X$$$]

Financial bookies see European stocks rebounding;  FTSE seen opening up around +0.3%,  DAX seen up around +0.7% and CAC 40 up around +0.6%.

‘Greece’s ability to recover competitive economic standing will be severely constrained if it continues to use the euro’

Got any ideas you’d like to share with your fellow readers, then here’s where to stick ‘em.