A better than expected German investor confidence # in their economy (ZEW), good earnings news from Daimler and Novartis, a successful sale of short term debt from Greece and the EU said 14,500 flights may resume today has led to a European stock rebound which has spilled over into US futures. The ZEW rose to the highest since Oct ’09 aided by a weak euro because 40% of Germany’s economy are exports. Greece sold 13 week bills but at a rate of 3.65% vs 1.67% for the same maturity back in Jan. Greek 10 yr yields are spiking again, by 17 bps to 7.78% ahead of tomorrow’s meeting with the EU and IMF that may last 2-3 weeks. A bailout is inevitable. Yesterday, ECB’s Weber said Greece may need twice as much as what has been committed so far. March UK CPI rose more than expected and Gilt yields are back above 4%. The Reserve Bank of India raised interest rates as expected due to growing inflation concerns. They don’t have OER in their CPI calculation.
