German fixed income futures have drawn some...>

BUNDS: German fixed income futures have drawn some modest support from the

broader, modest risk-off flows apparent in Asia-Pacific hours.

- Schatz +0.010, Bobls +0.040, Bunds +0.14.

- Focus Monday fell on the narrowing BTP-Bund spread, after Fitch affirmed Italy

at BBB; outlook negative on Friday. Bunds came under some modest pressure on the

back of the weekend's Sino-U.S. trade developments, but finished well away from

worst levels as Tsys ticked higher into the close.

- Yesterday, Eurosystem sources told MNI that the ECB could streamline its

forward guidance to simply emphasise that interest rates will remain unchanged

for "as long as necessary" once it drops its reference to "through the summer of

'19" at some point over the next few months. Elsewhere, 3 sources told MNI that

chances were rising of an announcement of a fresh round of TLTROs as soon as

March 7. Also yesterday, sources informed MNI that top ECB off'ls are worried

that the slow EZ econ growth might be a "new normal," which is here to stay.

- ECB's Lane, Mersch, Visco & Coeure will speak later today. Elsewhere, Germany

will offer 2-Year paper this morning.