German FI futures also fell afoul of the......>

BUNDS: German FI futures also fell afoul of the broader risk-on flows overnight

and trade just above lows approaching European hours. Schatz -2.5 ticks, Bobls

-10.0 ticks & Bunds -35 ticks.

- BBG summarised a Handelsblatt interview with ECB's Knot, released over the

weekend. Knot stated that "the ECB would need a clear monetary-policy reason to

consider acting to mitigate the effects of negative interest rates on banks."

Knot added "I must also be convinced that tiering is the best way to solve that.

I have my doubts on both points. In any case, the effect on banks could be very

diverse depending on their size and business model." This is Interesting. Knot

had suggested that the ECB should stay WELL AWAY from deposit rate tiering

earlier last week. His latest comments sound much more in line with Praet's

recent comments on the matter, although still hold scepticism. Knot also

suggested that the ECB will likely disclose TLTRO details in June or July.

- Italian government/fiscal matters, as well as Brexit issues, may impact the

space early this week, while EZ PMI, CPI & unemployment data provide the focal

points on the econ docket today. Elsewhere, we will hear from ECB's de Guindos.