Spds directionally wider w/higher Tsy......>

US SWAPS: Spds directionally wider w/higher Tsy ylds by the bell, wings well off

first half wides; intermediates lead expansion, 10Y still inverted but appr 2bp

off week ago lows. Mild pick-up in deal-tied flow, rebound  in equities,

particularly financials helping move spds off deeper inverted levels as spec bet

on improved credit worthiness. Current spd levels:

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

Tue 1500    +0.38/4.12     +0.88/+0.50    +1.56/-2.88   +0.12/-28.12

1330        +1.12/4.88     +1.00/+0.62    +1.31/-3.12   +1.00/-27.25

1100        +1.12/4.88     +1.00/+0.62    +1.31/-3.12   +1.00/-27.25

0945        +0.62/4.38     +1.00/+0.62    +1.06/-3.38   +1.06/-27.19

Tue Open    +0.88/4.62     +0.88/+0.50    +0.94/-3.25   +0.88/-27.38

Mon 1500    -0.56/5.00     -0.38/+0.00    -0.12/-4.25   -0.50/-27.81

Monday recap: Spds running mildly mixed, spd curve little steeper but scaling

back from overnight levels. Modest swap flow so far w/3s5s flattener, front end

payer flys: 2s3s5s, 3s5s7s and 3s7s10s.