Forward-looking indicators show growth momentum is comin back in the euro zone, says Commerzbank's Michael Leister.

SHOWS: LONDON, ENGLAND, UK (FEBRUARY 14, 2013) (REUTERS - ACCESS ALL):

1. (SOUNDBITE)(English) COMMERZBANK SENIOR RATES STRATEGIST, MICHAEL LEISTER

(QUESTION: Is the market going to focus on these rather poor numbers or are we looking ahead now to a better second half?)
Well the market certainly is going to take note of these numbers but overall as you mentioned, the market is very much looking forward after this really series of very decent and forward-looking indicators which indeed indicate that growth momentum is coming back in the Eurozone.
(QUESTION: Bunds are back at 170. Good value there. Is that where you're long now, still shorting the periphery?)
Absolutely, at least in technical terms and so forth. For today, we think that at these levels and with the GDP data, bunds are a buy here also given that this 170 area has held quite a few times over the past month. And we don't think that today we will get the sufficient or necessarily strong trigger to push us above that level. So indeed I'm long bunds and looking for some consolidation in peripherals.
(QUESTION: Okay. You say consolidation in peripherals. We've had an impressive recovery down there. How much longer are you going to go on?)
Well certainly, it's a very early question, and given that we've seen quite a sharp price moves now since over the past two weeks. And though we think that with the Italian election looming and basically all the good news priced in, in peripherals, we think that a further or basically a rewriting is on the cards here for peripheral spreads.
(QUESTION: Of course, G20 finance ministers are meeting. There's been a lot of confusion, more so in the FX markets about this G7 statement on Japan. To what extent did that confusion spill over into the rate markets?)
Well at least in our markets, we didn't see too much of an impact. Of course, the market is taking note that basically, the ECB is now regarded as the hawkish Central Bank when we compare it with Japan or even the likes of the Fed. But overall, it seems to really be an FX story but also as we've seen these FX movements can feed through into rate space given that also the ECB is now watching the currency moves quite vigilantly.