Off Best Levels

German FI futures have pulled further away from best levels with volumes running comfortably above average for this time of day. Schatz +23.0, Bobl +68 & Bunds +116 ticks. A reminder that the previously alluded pullback in the headline NRW CPI print provided a bid for the space ahead of traditional European hours. North Rhine Westphalia's statistical office flagged that public transport costs fell significantly due to the introduction of the so called "9-euro ticket," which allows travellers to use all means of public transport for 9 euro/month in June, July and August. The measure was announced by the federal government in February and is effective across all Germany. The (69.0% M/M) decline in so called "combined passenger transport" likely drove a 6.4% M/M drop in the transportation sub-index, which weighed on headline CPI. This likely explains the pullback from best levels (one off factor a key cog of the headline print), as participants digest the details of the release.

• The regional and national CPI readings out of Germany present the focal point on the European data docket during the remainder of the day, with ECB speak from Lagarde, de Guindos & Schnabel due out of Sintra. We will also get the release of Eurozone confidence data.