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

US SWAPS
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

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