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

US SWAPS: Spds running mostly wider, spd curve mildly steeper amid flurry of

light receiving in 2s, 3s and 5s over last hour, small payer in 10s at 2.34634%.

Latest spread levels:

* 2Y  +0.00/21.38

* 5Y  +0.50/7.62

* 10Y +0.38/-1.69

* 30Y +0.25/-26.25

Wednesday recap: Spd curve on highs after steepening sharply post refunding

annc. Flows include flattener unwinds vs. 30s, outright paying by specs, real$

and banks in 10s and 30s, receiver unwinds as well. Hedge fund payers in long

end followed by some prop and fast$ profit taking. Second half included sporadic

curve steepener adds, long end rate and spd paying from real$ and insurance

portfolios. Gist of move that Treasury Borrowing Advisory Committee (TBAC)

agreed Tsy should bill¬e issuance in short end (2-5s), while long end

issuance should hold steady so weighted average maturity not be "materially"

changed. Long end swap spds gapped wider - Sep'15 highs.