Spds running steady in the belly/mixed.....>

US SWAPS: Spds running steady in the belly/mixed in the wings, spd curve flatter

vs. renewed steepening in Tsy yld curves. Early NY flow two-way in 2s, 3s and 5s

but tending toward better rate and spd paying, decent volume in 2s5s10s receiver

fly. Expect 5s-10s to narrow later in day as corp supply tied hedging unwound.

Latest spd levels:

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

9:30        +0.81/16.50   +0.00/9.06     +0.00/2.50    -0.94/-21.25

Tue Open    +0.62/16.31   -0.19/8.88     -0.06/2.38    +0.25/-20.06

Mon 2:55    +0.81/16.19   +0.50/9.06     +0.25/2.50    -0.50/-19.62

Monday recap: Spds holding mostly wider, top end relatively narrow range. Recent

receivers in 2s and 5s fading move, flurry of flys include 2s3s5s and 2s3s10s

receivers, 2s5s10 payer fly. Earlier mixed flow helping keep spds in range,

$600M receiver 1s at 2.765-2.7394%, 2-way in 2s around 2.6797-2.6795%, same in

3s around 2.6157-2.6145%, modest payer 5s at 2.5985%, 2s3s5s payer fly.