A very limited session for German fixed.......>

BUNDS: A very limited session for German fixed income futures overnight. Schatz

unch., Bobls +1.0 ticks, Bunds +2.0 ticks.

- Thursday saw a source highlight cash buyers of Schatz vs. Bund futures, noting

that "curve steepeners continued to be the flavour of the day."

- ECB VP de Guindos spoke in New York yesterday, noting that QE is "something we

can use again if needed," and that he expects a growth pickup in H219, but

"cannot be super optimistic."

- Limited regional data and no speakers of note leaves local focus on the

sovereign ratings calendar. S&P will review Greece (current rating B+; outlook

positive) & Italy (current rating Bbb; outlook negative). Recent sessions have

seen the 10-Year BTP/Bund spread pressured by worries surrounding the Italian

political situation, as well as worry ahead of this particular rating review.

- Also worth remembering that the Spanish general election will take place this

weekend.