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Spds running wider, spd curve flatter......>

US SWAPS
US SWAPS: Spds running wider, spd curve flatter after steepening Wed w/long end
gapping wider on hopes of bank de-regulation making rounds again. Flow included
bank portfolio paying in 5s and receiving in intermediates, macros fund
receiving out the curve. Latest spread levels:
* 2Y  +0.75/19.56
* 5Y  +0.69/8.25
* 10Y +0.50/3.38
* 30Y +0.12/-12.12
Wednesday recap: Spds mostly wider, long end leading move after gapping wider on
renewed hopes of bank deregulation annc soon, 30Y off deeper inverted levels on
hopes for reducing bank's leverage ratio (SLR), etc. after chatter made rounds
again that Fed, OCC, FDIC may be close to announcing changes after being
disappointed over a week ago when vice chair for supervision of the Federal
Reserve Board of Governors Randy Quarles failed to deliver. Increase Tsy funding
keeping short end anchored. Typical flow earlier, light heading into FOMC with
exception of prop and fast$ paying in long end.

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