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Spds running wider at the moment, again....>

US SWAPS
US SWAPS: Spds running wider at the moment, again an early rebound after
narrowing late prior session. Really decent volume over last hour -- near $800M
2Y receiver from 2.8985-2.8935%, $320M 3Y payer at 2.8675%, 4Y switch ay
2.8252%, 2s5s10s payer fly. Latest spd levels:
* 2Y +0.62/13.00
* 5Y +1.00/10.38
* 10Y +0.50/3.94
* 30Y +0.06/-13.81
Tuesday recap: Keep an eye on front end spd -- may see repeat of yesterday's
gap-tightening. Spds were wider across board today (rebound after Mon's move
where 2Y gapped more than 3bps tighter to June 2016 lvls). The 2Y spd now -.56
at 12.19 after widening as much as 1.25 bps in first half. Potential underlying
factors remain: year end funding pressure for banks w/higher LIBOR sets, forced
liquidations and/or deleveraging chatter on Risk-parity accts. Note, balance of
spds wider, but appr 1.0 bps off first half highs as well.

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