*** Spds running mostly tighter, 2Y........>

US SWAPS: *** Spds running mostly tighter, 2Y balanced at even while rest of

curve extends inversion, ignoring Tsy bounce off lows. Rather limited flow

includes receiver in 2s around 1.520-.529%, receivers in 3s and 4s, payer in

10s. TD Securities offers up plausible opinion on inversion extension that the

Treasury bringing up ultra-long debt past what's currently available is their

attempt at steepening yld curves after 2Y10Y inverted for first time in over 12

years last couple weeks. TD is in line w/other researchers that demand for new

ultr-long issues is limited, while "any issuance will come cheap to the curve

and tighten swap spreads. Any knee-jerk steepening should be overshadowed by

macro fundamentals and Fed policy."

Latest spd levels:

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

1200        +0.81/+0.31    -0.81/-7.12   -1.00/-11.50   -1.50/-42.38

1030        +0.50/+0.00    -0.69/-7.00   -0.69/-11.19   -1.44/-42.31

Fri Open    +0.56/+0.06    -0.25/-6.56   -0.50/-11.00   -0.88/-41.75

Thu 1500    +0.81/-0.12    +0.50/-6.56   -0.25/-10.69   -0.25/-41.00