Rates Review: Societe Generale

EU: 10y swaps around 0.61% in Asia. 3y GGB yield returned over 20% for the first time in over a month adding pressure on Athens ahead of the EU leaders' summit this Thursday. The ECB bought €9.751bn of sovereign bonds last week (PSPP).

US: 2y cash yield stable above 0.64% as we wait for the FOMC. 10y swaps support 2.1464%. Est. $25bn - $30bn corp issuance expected on top of last week's $54.17bn record. Yesterday's swappable deals included $4bn EMD, $1bn Hyundai.

UK: 10y swaps find temporary support at 1.74% (50d ma). A break below brings 1.68% into contention. Action likely to be tepid today with traders awaiting labour market data, Budget/DMO issuance, MPC minutes and the Fed outcome tomorrow.