Spds running wider, belly lagging wings....>

US SWAPS: Spds running wider, belly lagging wings with the short end reversing

early narrows, joining long end late. Flow two-way in the short end on net,

modest deal-tied flow in the mix. Accts have been sporadically fading the

flattening in Tsy curve, scaling into the curve trade w/better front end

receiving since the FOMC annc. Swap desks  expect corporate issuance to start

picking up as well, typically a narrowing factor for spds but overnight repo

specials in 2s-10s has buffered compression for several sessions. Fast$, props

and insurance portfolios accts starting to get active. OTC vol lower across the

surface, reversing early gains. Latest spread levels:

* 2Y +0.88/27.19

* 5Y +0.25/8.50

* 10Y +0.19/-3.19

* 30Y +0.88/-31.38