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

US SWAPS: Spds running steady to mixed, spd curve mildly steeper w/bear

steepening Tsy curve. Sources reported receiving short-dated swaps and steepener

trades involving the 2 or 3Y as the long leg, better paying in fives and

thirties but also ten year receiving. Latest spread levels:

* 2Y  -0.25/20.06

* 5Y  -0.31/6.56

* 10Y +0.00/-1.81

* 30Y +0.06/-26.50

Thursday recap: Spds running steady/mixed by the close, spd curve flatter vs.

steeper Tsy curve with short end on wides. Earlier front end flys, 2s3s5s and

3s4s5s (both sub 95k DV01) and light deal-tied flow in mix. Mild two-way in 2s

and 5s into midday followed by fast$ rate paying in 2s late. OTC vol

steady/mixed, 1-3m gamma on 5-10Y tails firmer.