Spds running steady to mixed by the........>

US SWAPS: Spds running steady to mixed by the bell, spd curve steepening out

after drifting flatter for much of the session. Risk-off tone outweighed light

deal-tied compression earlier, fast$ mild rate payers 2s-5s coming into the

session. In addition to some light deal-tied hedging, recent flow includes 5s10s

spd flattener, 5s7s10s fly, paying the belly, small payer in 4Y at 1.9825%. Late

morning receiving from insurance portfolio gave way to decent paying in long end

as spd curve steepened. OTC swaption vol mildly higher across the surface;

ongoing heavy put volume in exchange traded options. Latest spread levels:

* 2Y  -0.12/24.50

* 5Y  -0.06/8.31

* 10Y +0.38/-2.00

* 30Y +0.38/-29.88