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Spds running tighter by the bell...........>

US SWAPS
US SWAPS: 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. Latest spd levels:
* 2Y -1.19/13.38
* 5Y -1.75/8.50
* 10Y -1.50/2.00
* 30Y -0.75/-14.75

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