The two market leaders saw their prices contract in the outright winner market while Manchester United and Liverpool were handed tougher assignments
Manchester City were 7/2 (4.50) to win the Champions League before Monday's Last 16 draw in Nyon.
Pep Guardiola's men were paired with Schalke in what appears to be a relatively kind draw and the odds compilers have reacted accordingly.
bet365 have subsequently made the Premier League champions 3/1 (4.0) to win the competition while Barcelona have also been clipped from 5/1 (6.0) to 9/2 (5.50) after drawing Lyon.
Both sides finished top of their groups as did Juventus although Cristiano Ronaldo & Co. face a tougher test in the form of two-time finalists Atletico Madrid. As a result the runaway Serie A leaders have been left alone in the betting at 6/1 (7.0).
Paris Saint-Germain (7/1 from 15/2) racked up 17 goals in the group stages. While the French side have struggled in the knockout stages of Europe's premier club competition in recent seasons, their tie against Manchester United looks a very winnable one given how Jose Mourinho's men have struggled this term.
United have been viewed as relative outsiders throughout the competition so far and were 40/1 (41.0) before the draw was made. bet365 have pushed the Red Devils out even further in their outright market making them 50/1 (51.0).
One of the most interesting ties sees Liverpool take on Bayern Munich. Jurgen Klopp led Borussia Dortmund to the final in 2013 where they were beaten in an all-German affair by the Bavarian giants at Wembley.
The Merseyside club have lost two European finals under Klopp since his arrival at Anfield - including last season's Champions League showpiece finale - but they're 10/1 (11.0) to go one better this time around. Bayern for their part are available at 14/1 (15.0), having been 10/1 (11.0) pre-draw.
Defending champions Real Madrid have had a stranglehold on this tournament in recent years, winning each of the previous three editions. Without Cristiano Ronaldo and Zinedine Zidane though, the bookmakers were somewhat sceptical about their chances this time around but a tricky draw against Ajax means the Blancos have been eased in the betting. Santiago Solari's side are now 12/1 (13.0) from 10/1 (11.0).
There could be a changing of the guard in Germany this season with Borussia Dortmund in emphatic form and boasting a nine-point advantage over champions Bayern. They will take on a Tottenham team who came alive in the second half of the group stage, securing a crucial 1-1 draw at the Camp Nou and ensuring their place in the knockout stages.
Tottenham beat Dortmund twice in last season's competition although their task is significantly tougher this time around. Nevertheless, Spurs are priced at 25/1 (26.0) to go all the way compared to the German side who are available at 33/1 (34.0).
The first legs of these ties get underway on February 12 and 13. The eight group winners will play the second legs at home.
Champions League Draw in full
Schalke vs Manchester City
Atletico Madrid vs Juventus
Manchester United vs Paris Saint-Germain
Tottenham Hotspur vs Borussia Dortmund
Lyon vs Barcelona
Roma vs Porto
Ajax vs Real Madrid
Liverpool vs Bayern Munich