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### Spds on the run this morning, spd......>

US SWAPS
US SWAPS: ### Spds on the run this morning, spd curve steepening out w/long end
climbing to least inverted levels since March 2015 (30Y spd +3.25 to -13.0 at
the moment). Swap sources say likely related to chatter that the Fed is nearing
final proposals to soften bank leverage ratio rules, softening Basel capital
requirements to give banks more freedom. Vice chair for supervision Fed Board of
Governors Randy Quarles, a US Pres Trump appointee may touch upon at 1300ET
today. Aside from two-way flow in the short end, and deal-tied paying ahead
expected supply next week, sources note some receiver unwinds out the curve with
specs putting on tactical wideners to get ahead of further dis-inversion. Latest
spread levels:
* 2Y  -0.25/20.25
* 5Y  +1.19/7.31
* 10Y +2.12/+3.44
* 30Y +3.25/-13.00

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