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Spds running wider, recovering slightly....>

US SWAPS
US SWAPS: Spds running wider, recovering slightly after gapping tighter late Mon
(2Y down to June 2016 lvls (-3.12 to 12.12). Appears short term funding pressure
for banks being felt earlier than normal headed into year end (though 1M LIBOR
higher again today +0.0118 to 2.4323% (+0.0321/wk). Some speculated compression
exacerbated by forced unwinds/deleveraging from Risk-Parity accts. Latest spd
levels:
* 2Y +1.06/13.81
* 5Y +0.88/9.69
* 10Y +0.75/3.75
* 30Y +1.56/-14.19
Monday recap: Not a good sign for the the short end -- Spds gapping tighter
across the curve -- making new lows for year in short end, 2Y revisiting levels
not seen since Jun 2016, while 5- and 10Y are at May 2018 lows 30Y at April 2018
inversion/lows. Appears short term funding pressure for banks is being felt
earlier than normal headed into year end. Earlier flow favored rate receiving in
2s-5s and -n-line spd curve steepeners.

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