Spds continue to add to mid-week shift.....>

US SWAPS: Spds continue to add to mid-week shift wider by Thu's close. Light

flow on net, some deal-tied paying in 5s, spd curve flatteners and 2s3s4s payer

fly. Latest spd levels:

Time (ET)   2Y Swap/Mid   5Y Swap/Mid   10Y Swap/Mid   30Y Swap/Mid

Thu 3:00    +0.72/9.88    +0.38/3.50     +0.44/-1.19   +0.19/-23.31

12:45       +0.41/9.56    +0.31/3.44     +0.38/-1.25   +0.06/-23.44

11:30       +0.35/9.50    +0.25/3.38     +0.25/-1.38   +0.00/-23.50

9:00        +0.16/9.31    +0.19/3.31     +0.19/-1.44   +0.06/-23.44

Thu Open    +0.16/9.31    +0.06/3.19     +0.06/-1.56   -0.25/-23.75

Wed 3:00    +0.44/9.12    +0.06/3.06     +0.12/-1.75   +0.06/-23.81

Spds running mildly wider, short end off early highs. Modest deal-tied flow on

day. Way too soon to ponder if funding cost pressure is easing as spds narrowing

slows -- just look at 2Y spd over last 12 months -- steady decline from around

32.0 in March-April 2018 to current levels below. EFFR still holding at recent

high of 2.44% -- stable. Desks starting to look at selling short end, rate

paying 2s-5s to fade move, make bets against chatter over IOER cuts.