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Spds running mildly wider, spd curve.......>

US SWAPS
US SWAPS: Spds running mildly wider, spd curve flatter, deal-tied flow adding to
move; light paying in 3s-5s. Latest spread levels:
* 2Y +0.88/22.62
* 5Y +0.19/7.06
* 10Y +0.38/-4.75
* 30Y +0.50/-34.62
Tuesday recap: Spds mostly wider by the bell, short end dragging long end off
early session narrows. Safe-haven/risk-off tone in rates adding to move while
hedges for incoming swappable supply adds to flatter spd curve. Sources report
mild rate paying in 2s, two-way in 2s and 2Y OIS, deal-tied paying in 2s, 5s, 7s
and 10s, two-way rate and spd flow from asset managers fast$ and bank portfolios
in 5s through 10s. OTC vol ratcheted higher on the rate rally, gamma
outperforming longer vega, midday pull-back on light profit taking/positioning,
levels climbed again late. 

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