German fixed income futures continue to.......>

BUNDS: German fixed income futures continue to trade a little higher than

settlement. Schatz +1.5 ticks, Bobls +6.0 ticks and Bunds +20 ticks.

- Tuesday saw Bunds stick to a tight range. ECB's Rehn was seemingly dovish on

TLTRO III terms and seemed more certain over detailed TLTRO disclosures in June

than his ECB compatriot Hansson was in our recent interview. Rehn also told BBG

that negative rates shouldn't become the new norm, and that the Bank shouldn't

fall into the trap of raising rates too quickly owing to various risks that are

evident at present (he did reiterate the idea that domestic demand will help the

EZ avoid a recession).

- Elsewhere, the latest Schatz auction was well received.

- ECB speakers headline the regional docket today, with Draghi, Coeure, Nowotny,

Praet, Hakkarainen, de Guindos, Lautenschlaeger, Mersch, Visco, and Villeroy all

set to speak (with most due up at the Bank's "ECB Watchers" Conference).

- Elsewhere, Germany will come to market with 10-Year paper, while French &

Italian confidence surveys may attract some interest.