*** Spds running mildly tighter for the....>

US SWAPS: *** Spds running mildly tighter for the most part, light flow included

bank paying in ten year notes; fast money paying occurred in the belly. Latest

spread levels:

* 2Y +0.06/26.00

* 5Y -0.19/8.25

* 10Y -0.50/-3.56

* 30Y -0.06/-33.38

Monday recap: Spds running steady/mixed after the bell, holding a narrow range

all session amid modest two-way flow in the 5s and 10s.. Earlier mixed flow

included insurance portfolio paying in the intermediates, fast$ spd curve

steepeners (5s vs, 10s and 30s) and asset manager receiving 2s5s10s spd fly.

Desks stymied by absence of seasonal narrowing (supply based) and Tsy curve

steepening in the last couple weeks. While corp issuance has been healthy (appr

$110B total) last two weeks, a majority has proved unswapped, one desk said.

Quiet start for the week, desks plying sidelines into Wed's FOMC annc. OTC and

exchange traded option vol steady to mildly firmer in the short end.