EM CEEMEA CREDIT: BSFR: FY results release hitting the tape

US futures now through the Friday lows as volumes and participation pick up at the NY crossover. Move lower for stocks is coming alongside a fresh daily low in the US 10yr yield - this is the inverse of the price action we noted into the Friday close, which saw the e-mini S&P drop ~80 points as the US 10y yield added ~5bps.

• An early underperformer amid single stocks had been Boeing - which traded lower by as much as 9% in pre-market trade this morning - but has since trimmed the losses to around 2%. Megacap names are underperforming ahead of the bell (as had been the case last week): Tesla lower by 1.9%, NVidia -0.9%, Apple -0.8%, Meta -0.8%.
• Today's marks one of the last full session of the year for equity markets - so rebalancing flows could prove dominant, estimates of which vary but some notable names see over $20bln of US equities to be sold from US pension funds in order to rebalance against the December price action - a sizeable flow when compared to historicals.

• There's no overarching driver for European fixed income this morning. The main event has been the release of Spanish inflation - which came in a couple of tenths above consensus.
• EGBs have seen curve flattening with 2-year yields marginally higher (as are Whites and some Red Euribor futures) but the bigger (yet still rather limited) moves have been further out the curve with 10-year Bunds (and other 10-year EGBs) moving off their early morning / late Friday lows.
• Gilts have in contrast seen a more parallel move in curves with yields around 1.1-1.6bp lower on the day at writing.
• The moves higher for core FI around the 10-year area come as European stock markets move off some of their early lows (although US markets, Eurostoxx and the FTSE100 are all still lower on the day).
• Gilt futures are up 0.05 today at 91.89 with 10y yields down -1.1bp at 4.620% and 2y yields down -1.6bp at 4.432%.
• Bund futures are down -0.01 today at 133.01 with 10y Bund yields down -0.9bp at 2.386% and Schatz yields up 0.3bp at 2.095%.
• BTP futures are up 0.03 today at 119.88 with 10y yields down -1.6bp at 3.525% and 2y yields up 0.3bp at 2.417%.
• OAT futures are down -0.03 today at 123.22 with 10y yields down -1.1bp at 3.199% and 2y yields up 0.1bp at 2.280%.

• Just over 33,000 0QM5 96.37/97.00 call spds vs. 95.37/95.62 put spds ref 96.02 - checking direction.