*** Spd curve on session flats vs..........>

US SWAPS: *** Spd curve on session flats vs. continued steepening in Tsys Short

end extending wider. But it's the long end that has marched significantly

tighter over last two hours, back to mid-Jan levels (-16.0). No confirmation,

but spd curve stop-outs likely in play as well as noted in Tsys earlier. short

end heating up in overnight repo adding to move in short end. If Fed announces

bank de-regs/softer leverage ratios, would be a good place to enter. However,

after Fri's sanction against Wells Fargo, is probability of softer bank reg's

falling? Latest spread levels:

* 2Y  +1.75/23.50

* 5Y  +0.12/9.69

* 10Y -1.19/2.31

* 30Y -2.56/-16.12