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Spds running steady/mixed, spd curve.......>

US SWAPS
US SWAPS: Spds running steady/mixed, spd curve mildly flatter. incoming supply
weighing on long end spds. Latest spread levels:
* 2Y +0.60/26.56
* 5Y +0.12/8.12
* 10Y +0.00/-3.50
* 30Y -0.44/-32.00
Wednesday recap: Spds wider by the close but off first half highs when spd curve
flattened around same time Tsys started to pare early safe-haven gains. Risk off
tone/wider spreads likely to hold in the short term, at least as long as
safe-haven/risk-off tone related to N Korea tensions continue. On the flip-side,
spds likely to compress sharply if geopolitical concerns cool/resolve. Flow
included deal-tied hedging, rate paying by specs in 2s and 5s. long end saw
little activity. OTC vol surged in 1-3M10Y sector of grid in the first half,
pared gains but finish higher by the close, call skew in OTC and exchange traded
options gained vs. corresponding puts.

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