Spds running tighter across the curve --...>

US SWAPS: Spds running tighter across the curve -- back to mid-June 2016 levels

for the 2Y while spds out the curve are back to early 2018 levels. Ongoing year

end customer position squaring amid constrained balance sheet for dealers. Mixed

overnight flow w/better rate and spd receiving, some fading move in 2s ($460m

payer at 2.7775%, 2s3s4s and 3s5s10s payer flys. Latest spd levels:

* 2Y -0.88/12.38

* 5Y -0.88/7.88

* 10Y -1.00/1.25

* 30Y -1.19/-15.75

Tuesday recap: Spds running tighter by the bell w/intermediates blowing past

short end later in second half. Year-end customer position unwinds amid tight

balance sheet for dealers appears to be driving factor amid heavy rate and spd

receiving in 2s in first half (well over $1B nominal in 2s ahead midday),

followed by rate receivers in 5s-10s late; receiver flys include 2s5s10s and

2s4s5s. Earlier, short end narrowing outpaced amid continued better receivers in

2s, 5s, payer in 10s and a 2s/5s/10s receiver flys.