German fixed income futures benefitted from...>

BUNDS: German fixed income futures benefitted from the aforementioned Chinese

state media headlines overnight, but stuck to the usual low volume in

Asia-Pacific hours.

- Schatz +1.0 tick, Bobls +6.0 ticks, Bunds +17 ticks, sitting around best

levels ahead of European hours.

- Late on Thursday ECB's Coeure noted that "services deepening has had a

profound impact on the transmission of monetary policy, also in the euro area.

It has lowered the median frequency of price changes in the economy, increasing

the lag with which monetary policy is transmitted to consumer price inflation."

- There has also been some comments from Bundesbank's Buch in Boersen Zeitung,

as he suggested that the recent weakness in the German economy seems to only

reflect a "dip."

- Italian fiscal matters will continue to be front and centre, as will any

Brexit/UK government developments.

- Final EZ CPI is due today, with a very limited EZ docket apparent.