German fixed income futures trade a little....>

BUNDS: German fixed income futures trade a little shy of Friday's settlement

levels, after the space turned bid in the final session of last week.

- Schatz -1.0 tick, Bobls -3.0 ticks, Bunds -12 ticks.

- Friday's soft German & French PMI data drove the initial bid in the space,

with the curve flattening further as worries re: U.S. curve inversion

heightened.

- Friday also saw BBG sources report that ECB President Draghi told EU officials

that the central bank observes a "protracted weakness and pervasive uncertainty"

in the European economy but no recession, which he suggested was largely

attributable to the international trade environment.

- Peripheral spreads widened on Friday on the back of the broader risk-off tone.

The failure of Fitch to upgrade Spain's credit rating may leave some room for

disappointment in early Bono trade this week.