German fixed income futures stuck to tight....>

BUNDS: German fixed income futures stuck to tight ranges overnight, operating on

low volume. Schatz +0.005, Bobls +0.040, Bunds +0.10.

- ECB's Mersch spoke with BBG late on Friday, stating that he is "confident that

ultimately a rebound will happen," with reference to the EZ economy. ECB's

Coeure gave a rather damning verdict on Italy early Monday, while reiterating

the central bank's stance re: MonPol & the EZ economy. Elsewhere ECB Governing

council member Vasle pointed to familiar risk matters on Saturday. It is also

worth noting that the weekend saw continued speculation surrounding a Deutsche

Bank-Commerzbank merger. On the broader European front, AKK, the leader of

Germany's ruling CDU, warned against "European centralism", in her response to

French president Emmanuel Macron's "European renaissance" address.

- Participants also remain cognisant of developments in Italy. Late Friday,

Stefano Buffagni, an undersecretary to Italian PM Conte, confirmed that the

ruling government has requested that some of the Bank of Italy's top officials

be replaced.

- German trade, ind. prod., labour costs & current a/c data will hit today.