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

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?

Earlier flow included flatteners in 5s vs. 7s and 10s, $457.6k 5s6s30s fly,

paying belly and $165.2k 2s4s7s fly, receiving belly Latest spread levels:

* 2Y  +1.88/23.62

* 5Y  +0.12/9.69

* 10Y -1.62/1.88

* 30Y -3.19/-16.75