*** Spds running mixed, spd curve..........>

US SWAPS: *** Spds running mixed, spd curve flatter w/30Y extending to new

all-time inverted lows in early London trade (-87.0, -21.25 tighter than late

Thu). That said, long end spd has rebounded significantly w/Tsys off lows, but

still remains near 2007 inverted lows. Ongoing factor affecting long end Tsys

appears to be domestic/foreign real$ acct sales for liquidity liquidity: balance

sheet re-allocations include SP, FX and swap accts. Latest Spd levels

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

Fri Open   +1.81/+2.31    +3.25/+5.50   -2.00/-6.00    -5.25/-71.00

Fri 0730   +2.25/+2.75    +2.25/+4.50   -2.62/-6.62    -7.75/-73.50

Fri 0630   +3.50/+4.00    +3.00/+5.25   -2.50/-6.50   -15.50/-81.25*

Thu 1515   -0.25/-2.75    +0.31/+2.06   -2.50/-2.50   -12.00/-60.00

Thursday recap: Huge swings on another volatile session for swap spds, broad

ranges with the 30Y spd making new inverted low of -60.0!. Spds had gapped

wider/off broadly tighter lows (long end) earlier in response to NY Fed annc

massive repo liquidity op ($500B 3M Thu; $500B each 1- and 3M Fri: $1.5T over

two days, and $1T every wk this month on top of $175B O/N repo and $45B2W).