STIR: ECB & BoE Pricing Off Dovish Session Extremes As Stocks Rally From Lows

The S&P Global Canada manufacturing PMI slid from 51.6 in Jan to 47.8 in February, its lowest since July in clear signs of tariff disruption. Highlights from the press release (in full here): 

• “Canada’s manufacturing economy suffered a notable deterioration in performance during February. Output and new orders both declined, largely due to considerable market uncertainty related to tariff concerns.”
• “Job losses were also recorded, whilst confidence in the outlook turned pessimistic for only the second time in the survey history.”
• “Amid some reports of vendor price uplifts in response to anticipated tariffs, input cost inflation rose to its highest level since April 2023.”
• Output price inflation kept to a similar pace however: "Output charges were increased in response, with inflation remaining solid and little changed since January."

DSTA has released its preliminary initial spread guidance for its tomorrow's DDA at to +25.0 to +28.0bps vs the 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).

• On offer tomorrow will be E4.0-6.0bln of the new 10-year 2.50% Jul-35 DSL (ISIN: NL0015002F72)
• Books will open tomorrow at 9:00GMT / 10:00CET

SPX: 5,981.0 (+0.4%); DJIA: 43,956 (+0.3%/+115pts); NDX: 21,039.2 (+0.7%).