### POV, TRADE OR FADE SPD COMPRESSION? ...>

US SWAPS: ### POV, TRADE OR FADE SPD COMPRESSION? 

- Whether recent tactical wideners/receiver unwinds is a good idea remains to be

seen. In the meantime, long and short end of spd curve has eased off this

morning's appr 30-month low in 2s and 6-month low in 30s.

- Carry-over year end customer position squaring amid constrained balance sheet

for dealers helped push spds tighter over last couple weeks. But as the charge

higher in US LIBOR sets has moderated of late, the theme may have run it's

course. Note, some chatter that dealers had loaded up early to avoid year end

funding issues.

- As to flow, decent two-way in short end over last couple hours, better rates

and spd receiving in 5s and 10s. Latest spd levels:

* 2Y -0.06/13.19

* 5Y -1.31/7.44

* 10Y -0.94/1.31

* 30Y +1.12/-14.44