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### POV: KEEP AN EYE ON FRONT END SWAP.....>

US SWAPS
US SWAPS: ### POV: KEEP AN EYE ON FRONT END SWAP SPD 
- May see repeat of yesterday's gap-tightening. Spds were wider across board
today (rebound after Mon's move where 2Y gapped more than 3bps tighter to June
2016 lvls). The 2Y spd now -.56 at 12.19 after widening as much as 1.25 bps in
first half. 
- Potential underlying factors remain: year end funding pressure for banks
w/higher LIBOR sets, forced liquidations and/or deleveraging chatter on
Risk-parity accts. Note, balance of spds wider, but appr 1.0 bps off first half
highs as well. Couple that with global political, trade and govy shut-down
risks, and long end inversion can easily leak back into 10Y spd. Latest spd
levels:
* 2Y -0.56/12.19
* 5Y +0.75/9.56
* 10Y +0.38/3.38
* 30Y +1.62/-14.12

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