### POV, After a flatter start, the spd....>

US SWAPS: ### POV, After a flatter start, the spd curve has steepened out

significantly with long end marching wider. Swap desks reporting scant flow,

however, moving on air -- in other words, try selling it, may not get filled.

The 30Y spd is still off recent highs (inverted) not seen since September 2015.

Last week, the long end gapped wider following the refunding annc w/(TBAC)

agreed the Tsy should bill and note issuance in the short end (2-5s), while long

end issuance should hold steady. With this week's Tsy supply and decent pick-up

in corp issuance, desks looking/waiting for spds to narrow before entering

wideners at better levels. Recent flow includes rate paying in 2s around 1.8395%

and 2s5s spd flatteners. Latest spread levels:

* 2Y  +0.12/20.81

* 5Y  +0.31/7.69

* 10Y +0.50/-2.00

* 30Y +1.12/-25.88