### Spd curve on highs after steepening....>

US SWAPS: ### Spd curve on highs after steepening sharply after refunding annc

vs. flatter Tsy curve. Flows include flattener unwinds vs. 30s, outright paying

by specs, real$ and banks in 10s and 30s, receiver unwinds as well. Hedge fund

payers in long end followed by some prop and fast$ profit taking. Second half

included sporadic curve steepener adds, long end rate and spd paying from real$

and insurance portfolios. Gist of move that Treasury Borrowing Advisory

Committee (TBAC) agreed the Tsy should bill and note issuance in the short end

(2-5s), while long end issuance should hold steady so that the weighted average

maturity not be "materially" changed. In reaction, long end swap spds have

gapped wider, the inverted 30Y spd at levels not seen since September 2015.

Latest spread levels:

* 2Y  -0.94/21.31

* 5Y  -0.06/7.19

* 10Y +0.69/-2.19

* 30Y +2.12/-26.75