The PMI indicates stabilising economic activity, but declining new orders and hiring reveal a weak short-term outlook despite stock market optimism on Europe. Click to read.
Recent positive data surprises for eurozone have improved macro sentiment, and PMI readings today will be watched. The downside risk for the front end of the curve is relatively limited.
The headline HCOB Flash France Composite PMI Output Index fell to 44.5 in Fenruary, below January's 47.6, falling deeper into sub-50.0 territory, indicating sharper rate of decline in business activity across the eurozone's second-largest economy.
Bund yields ticked higher again as markets price in higher issuance on the back of defence spending. Eurozone sovereign spreads tightening suggests markets are focused on joint EU borrowing.