Compared to Reuter’s median forecasts of flat, -0.9% respectively.

January’s data revised to +1.1% m/m, -1.1% y/y from previous +0.3%, flat respectively.

–Mar Services PMI 55.3 Vs 53.3 Median, 53.8 In Feb
–Easing Input Cost Pressures May Help Reassure BOE MPC Hawks
–Markit’s Williamson Says Stronger Growth Will Stay BOE MPC Hand

LONDON (MNI) – The latest Markit/CIPS purchasing managers’ services
sector survey showed the sector putting in a surprisingly strong
performance in March.

Markit said that the three PMI surveys seen this week
(manufacturing on Monday and construction on Tuesday) showed that the
UK economy had avoided a slide back into recession and were consistent
with 0.5% growth in Q1 (in line with the BOE’s own February forecast).

Unlike other surveys in this series this week, input costs eased –
in this case to their slowest pace since August 2010.

Chris Williamson of Markit said that the strength of the economy as
reflected in these surveys would stay the BOE MPC’s hand on further
asset purchases in coming months.

“PMI data signalled that UK economic growth picked up in March to
round off the strongest quarter for a year. The surveys therefore
indicate that the UK economy has escaped a slide back into recession,
and also suggest that the Bank of England will hold off on further asset
purchases unless the economic situation deteriorates in coming months”.

Williamson said that the upturn in business confidence in both
construction and service sectors bodes well for future growth, though
he warned that soft underlying order books might weigh on manufacturing.

The Queen’s Jubilee celebrations could also be expected to dampen
GDP growth, Williamson said.

“There remains a strong risk that, unless business activity picks
up further, the economy could contract again in the second quarter.
Despite this, the strengthening of the economy in March suggests that
the Bank of England’s Monetary Policy Committee will leave policy
unchanged and is likely to revise up its growth forecast in the spring
Inflation Report. Further quantitative easing is only likely if the
economic data turn down meaningfully in coming months.”

–London newsroom 0044 207 862 7492; email: dthomas@marketnews.com

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

Presently at 376 bps from the 364 I noted first thing.

Italian/German 10 year govt bond yield spread out to 344 bps from early 335.

EUR/USD hits new session low of 1.3163, presently at 1.3167.

The 2.59 bln euros raised was very much at the lower end of the 2.5-3.5 bln euros target range.

EUR/USD down at 1.3175.

As mentioned earlier, talk of buy orders clustered 1.3150/70, sell stops through there and more through 1.3140 apparently.

On topside, trailing buy stops noted through 1.3220.

–Mar Services PMI 55.3 Vs 53.3 Median, 53.8 In Feb
–Easing Input Cost Pressures May Help Reassure BOE MPC Hawks

LONDON (MNI) – The latest Markit/CIPS purchasing managers’ services
sector survey showed the sector putting in a surprisingly strong
performance in March.

Markit said that the three PMI surveys seen this week
(manufacturing on Monday and construction on Tuesday) showed that the
UK economy had avoided a slide back into recession and were consistent
with 0.5% growth in Q1 (in line with the BOE’s own February forecast).

Unlike other surveys in this series this week, input costs eased –
in this case to their slowest pace since August 2010.

Chris Williamson of Markit said that the strength of the economy as
reflected in these surveys would stay the BOE MPC’s hand on further
asset purchases in coming months.

“PMI data signalled that UK economic growth picked up in March to
round off the strongest quarter for a year. The surveys therefore
indicate that the UK economy has escaped a slide back into recession,
and also suggest that the Bank of England will hold off on further asset
purchases unless the economic situation deteriorates in coming months”.

–London newsroom 0044 207 862 7492; email: dthomas@marketnews.com

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

Poor take up and EUR/USD’s slipping again….

Sold Eur 973 mln of 4.25% Oct 2016 Bono, yield 4.319 % (from 3.376%), cover 2.5 (from 2.6)

Sold Eur 1.127 bln of 4.4% Jan 2015 Obligacion, yield 2.890% (2.440%), cover 2.4 (5.0)

Sold Eur 489 mln of 4.85% Oct 2020 Obligacion, yield 5.338 % (5.156%) cover 3.0 (2.0)

Weak take-up, rising yields and worse cover…not a good auction

From 53.8 in Feb and well above Reuters poll of 53.4. Q1 average highest since Q2 in 2010

Markit: PMI’s signal GDP growth of 0.5%q/q in Q1

Cable’s up around 10 pips on the headline at 1.5909, before settling around 1.5900

Bloomberg reporting.

• Floor helps avoid worst for exporters
• ‘Negative’ inflation in 2012, inflation to follow
• Swiss mortgage market ‘overheating’

EUR/CHF sits at 1.2035.

Recent market reports have had the SNB at 1.2020.

EUR/GBP’s taking the brunt of the euro-weakness  with a slip under 0.8300 to lows of 0.8297, keeping GBP/USD steady just under 1.5900.

EUR/GBP support is at 0.8295/00 and 0.8280/85. Offers are sitting up at 0.8320/25

Cable bids sit down at 1.5870/75, 1.5840/45 and 1.5800/10

March UK Serv PMI is expected around 53.5 after last month’s reading of 53.8

UPDATE:  Getting reports of real money selling the EUR/GBP around 0.8300

Yipeeee.

• Higher demand from emerging markets should provide support

EUR/USD recovering slightly on the news, presently at 1.3187 from session low 1.3176.

Above flash estimate of 48.7 and Feb’s 48.8

Final services business expectations 60.6, below flash estimate of 60.9, but an 8mth high

Final composite PMI 49.1 , above flash estimate of 48.7, and Feb’s 48.5

EUR’s  not reacting  on the improved numbers , as Spanish yields  move higher and weigh on sentiment

Guess so,

EUR/USD effectively unchanged on the day, back at the 1.3185 which greeted me first thing, the pairing unable to hold the brief BIS-induced rally back over 1.3200.

Fractionally above flash estimate of 50.0.

German March final services PMI 52.1, slightly better than flash estimate of 51.8.

Slightly above 44.1 in February and slightly below Reuter’s median forecast of 44.5.

Presently out to 369 bps from the 364 I jotted down first thing.

Italian/German 10 year govt bond yield spread has widened out to 340 bps from 335 bps first thing.

Nothing major as yet, but worth keeping an eye on.

–UK Mar House Prices +2.2% m/m; -0.6% 3m y/y: Halifax>}
–Prices Fall 0.1% q/q
–Halifax Sees Little Change In House Prices This Year

LONDON (MNI) – UK house prices got a boost in March from the
looming expiry of the stamp duty holiday for first-time buyers, the
Halifax House Price Index showed

The HHPI showed prices rising 2.2% on the month and falling 0.6% on
the year. On the quarter prices fell 0.1%.

Housing Economist Martin Ellis said:

“Efforts by first-time buyers to beat the expiry of the stamp duty
holiday at the end of March have probably increased sales in recent
months and may have helped to support prices.

He continued:

“We continue to expect little overall movement in prices this year
provided that the UK economy does not suffer a pronounced weakening.”

–London newsroom: +44 207 862 7492; email: ukeditorial@marketnews.com

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

Up from 41.9 in February and better than Reuter’s median forecast of 42.0.

Highest read since last July.

–UK Mar House Prices +2.2% m/m; -0.6% 3m y/y: Halifax>}
–Prices Fall 0.1% q/q

LONDON (MNI) – UK house prices got a boost in March from the
looming expiry of the stamp duty holiday for first-time buyers, the
Halifax House Price Index showed

The HHPI showed prices rising 2.2% on the month and falling 0.6% on
the year. On the quarter prices fell 0.1%.

–London newsroom: +44 207 862 7492; email: ukeditorial@marketnews.com

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

Demonstrably stronger than Reuter’s median forecast of -0.3%.

What is it with this house price data in the UK?, soooooo much conflicting data…….

There is just no comparison with recently released Nationwide data

Been buying in recent trade. Not sure of exact level/s.

We’re at 1.3195.

Yesterday we reported BIS selling up in 1.3350/55 area, so seeing them on the bid now we’re one and a half big figures lower is no surprise at all (well not to me it isn’t)