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

US SWAPS: Spds running steady/mixed, spd curve adding to Tue's steepening in

second half. Mixed flow included receiving in 2s and 10s, paying in 5s and 30s,

10-12-15Y spd fly 300k DV01. Latest spread levels:

* 2Y  -0.44/20.00

* 5Y  -0.12/7.50

* 10Y +0.00/-2.19

* 30Y +0.25/-25.75

Tuesday recap: After a flatter start, the spd curve steepened out significantly

into the second half, long end marching wider. Swap desks reporting scant flow -

moving on air. The 30Y spd is still off recent highs (inverted) not seen since

September 2015. Last week, the long end gapped wider following the refunding

annc w/(TBAC) agreed the Tsy should bill and note issuance in the short end

(2-5s), while long end issuance should hold steady. With this week's Tsy supply

and decent pick-up in corp issuance, desks looking/waiting for spds to narrow

before entering wideners at better levels. Recent flow includes rate paying in

2s around 1.8395% and 2s5s spd flatteners.