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

US SWAPS: Spds running mixed, spd curve flatter w/flurry of paying in 2s post

LIBOR set; additional trade since set: payer in 3s at 2.614%, payer in 5s at

2.7112%, 2s7s flattener, $150K 2s5s7s fly/paying the belly. Latest spread

levels:

* 2Y  +1.38/26.25

* 5Y  +0.75/11.25

* 10Y -0.31/0.38

* 30Y -0.50/-19.25

Friday recap: Spds running tighter across the curve, reversing early wides by

midday and extending move into the close. Note 10Y spd back near steady from

+3.0 on Wednesday. Pick-up in late week swappable supply ($12.3B priced on wk),

cooling of overnight repo levels and concerns over tighter credit conditions

after China Anbang Insurance Group seizure by the countries officials

contributing to move. Early flow included paying in 2s at 2.5057% and 5s at

2.7575%, small 2s4s flattener, $97.8k DV01 5Y-10Y steepener.