Summary: Euro-zone households more optimistic in March; index well-above consensus expectation; back above long-term average; major euro-zone bond yields slip.
EU consumer confidence plunged during the GFC and again in 2011/12 during the European debt crisis. After bouncing back through 2013 and 2014, it fell back significantly in late 2018 but only to a level which corresponds to significant optimism among households. Following the plunge which took place in April 2020, a recovery of sorts began a month later.
The March survey conducted by the European Commission indicated its Consumer Confidence index increased to -10.8. The reading was well above the -16.0 which had been generally expected and February’s figure of -14.8. The average reading since the beginning of 1985 is -11.7.
Sovereign bond yields declined a touch in major European bond markets on the day. By the end of it, German and French 10-year bond yields had each slipped 1bp to -0.35% and -0.12% respectively.