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

US SWAPS: Spds running mostly wider, spd curve mildly flatter, flow includes

rate paying in 2s at 2.25375-2.2555%, payer in 10s at 2.6160%. Recent 5y switch

around 2.4675-2.46989%. Latest spread levels:

* 2Y  +0.38/20.62

* 5Y  +0.38/5.56

* 10Y +0.12/+0.81

* 30Y -0.38/-16.88

Wednesday recap: Spds running mixed by the bell, spd curve steeper all day,

decent two-way in front end tied to deal-tied hedging between 2s-5s, keeping lid

on widening out the curve. Earlier reports of decent real$ receiving in 30s

(rate and spd). Other flow includes $20m payer 3Y at 2.33468%, 5yr switch around

2.42895-2.4310, $93.9k DV01 3Y-5Y FLATTENER, $61.2k DV01 5Y-6Y STEEPENER,

$122.4k 2Y-5Y-6Y Fly, receiving the belly. OTC and exchange traded option vol

lower/off lows when underlying rates traded lower in the long end as US$

rebounded off lows. Decent volume trade on mixed flows, large buyer 40k TYH 124

calls at 8/64.