German fixed income futures trade either......>

BUNDS: German fixed income futures trade either side of unchanged at writing.

Schatz -2.5 ticks, Bobls -4.0 ticks, Bunds +8 ticks. This comes in the wake of a

strong rally on Wednesday, facilitated by broader risk-off flows and speculation

surrounding ECB deposit rate tiering, which also resulted in the widening

peripheral spreads.

- BBG released an interview with ECB's Praet who noted that "there needs to be a

solid monetary-policy case before officials act to mitigate side effects of

negative interest rates on banks. ECB staff are examining the issue of tiering -

where some of banks' excess reserves are exempt from the lowest rate - but

action isn't a done deal." Praet noted that policymakers don't see a particular

problem in bank lending. Praet also alluded to the idea that the ECB could

reveal the terms of its new round of TLTROs in June.

- Participants now look to German state and national CPI readings, as well as EZ

consumer confidence and money supply data, while ECB's de Guindos, Nowotny, Knot

& Villeroy are all set to speak.