German fixed income futures trade below.......>

BUNDS: German fixed income futures trade below settlement, but off of overnight

lows, with the move aided by the buoyancy for risk assets evident since Monday's

settlement.

- Schatz -0.015, Bobls -0.090, Bunds -0.29.

- Brexit matters provided the initial round of risk-on flows late Monday. UK PM

May & EU's Juncker pointed to no further negotiations, and the temporary nature

of the backstop, as well as the positive nature of the insurance policy &

arbitrary measures if the good-faith of the backstop is breached, if ever

enacted. There were no changes to the text of the Brexit deal (withdrawal

agreement) itself.

- This has resulted in at least some of the Eurosceptic wing of the UK's ruling

Conservative party remaining cautious over the "progress." BBC sources suggested

that AG Cox is "agonising" over whether to alter his legal advice on the deal,

which will be key, ahead of today's vote in the Commons.

- Focus today turns to an address from ECB's Lautenschlaeger and the broader

risk backdrop/Brexit developments.