New first for swap spds -- inverted........>

US SWAPS: New first for swap spds -- inverted across the curve in early trade,

2Y spd went negative for first time, decisive move implying some payer unwinds,

receiver in 5s at 1.803%, spd curve steepeners. Current spd levels:

Time (ET)   2Y Swap/Mid    5Y Swap/Mid   10Y Swap/Mid   30Y Swap/Mid

Tue 1500    -0.38/0.12     -0.62/-2.88    -0.38/-7.50   -0.06/-34.81

1330        -0.19/0.31     -0.12/-2.38    +0.44/-6.69   +1.25/-33.50

1200        -0.44/0.06     -0.69/-2.94    -0.50/-7.62   -0.38/-35.12

1045        -0.38/0.12     -0.69/-2.94    -0.50/-7.62   -0.44/-35.19

0900        -0.31/0.19     -0.56/-2.81    -0.25/-7.38   +0.44/-34.31

Tue Open    -1.00/-0.50    -0.81/-3.06    -0.62/-7.75   -0.06/-34.81

Mon 1500    -1.25/0.88     +0.06/-2.38    -0.38/-7.12   -1.00/-34.62

Monday recap: Spds running tighter across the board, short end sub-1.0 and

headed towards inversion for the first time ever. Swap-tied flow includes

ongoing payer unwinds, some light deal-tied flow in the mix. Large TUU Block buy

late likely swap related w/short end collapsing.