The EURO bond market gained 3.73% during the 1st quarter of 2012.
Economic data in the periphery developed less favorably. On February 29, In its second massive funding operation, the ECB pumped a significant amount of liquidity into the European banking system in the form of a 36-months tender. The banks grabbed 530 billion euros, much of which went to Spain, Italy, and France. At the beginning of March, uncertainty over the level of participation of private creditors in the haircut dominated headlines. Participation of 85.8% triggered a marked recovery in the markets. In the U.S., the labor market continued its upward trend, and early indicators depicted a slight increase over the previous month. In Germany, the IFO Index rose to an eight-month high and reflected the robust development of the German economy. In the U.S. market, participants anticipated a new round of bond purchases by the Fed.