The moderation in risk appetite evident.......>

BUNDS: The moderation in risk appetite evident overnight has seen German fixed

income futures trade higher vs. settlement levels, with the guarded rhetoric

employed by the RBA adding further support.

- Schatz +0.5 tick, Bobls +7.0 ticks, Bunds +25 ticks.

- The move comes after the space sold off in line with Tsys late Monday, as

risk-on flows dominated early dealing this week.

- There were no real surprises in the ECB's annual report released Monday;

President Draghi pointed to the need for continued stimulus, and VP de Guindos

called "significant monetary policy accommodation...essential."

- Monday also saw the latest round of German and EZ m'fing PMI data underwhelm,

although peripheral outperformance was noted.

- Worth noting that BBG sources have reported that the Greek government is

exploring the possibility of repaying some of its IMF aid ahead of schedule.

- Focus Tuesday will fall on Brexit matters and comments from ECB's Praet.