And JPM analysts also said on......>

US TSYS/RESEARCH: And JPM analysts also said on 5/30Y US Tsys curve that "more

tactically, we think there is room for the curve to flatten over the coming week

as well."

- "Treasury is set to auction $101bn in supply in a period typically

characterized by deteriorating liquidity: our work shows that 10-year Treasury

market depth has tended to decline by over 40% in the final weeks of December,"

they said.

- "Moreover, there is a seasonal tendency for the curve to flatten over this

period. The 5s/30s curve has flattened more than 10bp, on average, in the last

two weeks of the year, and this has occurred in 8 of the last 10 years," they

said. "Therefore, with valuations now fair, the medium-term outlook supportive

of flattening, and year-end seasonals pointing to flattening as well, we

recommend initiating 5s/30s flatteners."