### POV, Spds are running mostly...........>

US SWAPS: ### POV, Spds are running mostly tighter, short end spd curve extends

early flattening w/2yr notching wider into midday. Swap desks citing auction

concessions and duration selling in Tsys for narrowing. Aside from today's 2Y

note auction is a pick-up in swappable corp and supra-sovereign supply (Saudi

3-part for tomorrow). Last week swap flow included consistent spd curve

steepeners -- fading the one-way flattening in Tsys. Weaker hands have been

consolidating some of the steepener positions in the short end this week while

others continue to like steepeners out the curve, fading Tsys particularly

around 25bp and lower. Latest spread levels:

* 2Y +0.75/26.31

* 5Y -0.50/8.00

* 10Y -0.50/-4.00

* 30Y -0.62/-32.31