EGB OPTIONS: Bund put fly buyer

GERMANY FEB IFO BUSINESS CLIMATE 91.1 (FCST 91.2); JAN 90.1r

GERMANY FEB IFO CURRENT COND 93.9 (FCST 95.0); JAN 94.1

GERMANY FEB IFO EXPECTATIONS 88.5 (FCST 88.4); JAN 86.4

• The German IFO survey saw modest improvements in February.
• The indexes were up one point on the business climate index and up 2.1 points in expectations, largely in line with consensus expectations. Overall, optimistic outlooks are driving improvements.
• The IFO current assessment was weaker than anticipated, edging down by 0.2 points, highlighting that the economy continues to face significant headwinds.
• Services was boosted in particular by hospitality and tourism.
• Manufacturing sentiment was the highest since May 2022, as rebounding expectations outweighed the further weakening in new orders.
• Easing inflation and lower energy prices (aided by government price caps) are boosting 2023 outlooks. Easing China restrictions should improve export demand for Germany, which has been a key downward driver in factory orders over the past months.

• MNI: BAVARIA JAN CPI +0.7% M/M, +8.8% Y/Y