VIEW: Friday saw UBS note that "the.........>

US TSYS: VIEW: Friday saw UBS note that "the relationship between the 5s30s

curve and the S&P has weakened, with the curve far flatter than what the S&P

suggests. Part of this is likely due to positions being more crowded than we

anticipated. We did not respect the summer slowdown - a position that is not

overcrowded when trading volumes are high may look crowded during a summer lull

in trading. The NASDAQ is up 18% this year, with the Dow Jones down 10%. That

divergence means that the curve still looks too flat when it is compared to an

index with less tech exposure, but the difference is not as dramatic. Going

forward we will focus more on cyclical stocks rather than broader indexes. We

anticipate fiscal stimulus this month, so 100bp 5s30s seems like good entry. In

the last two weeks of July Congress will be back, creating a window for another

round of stimulus before the election. The weight of supply should keep

structural steepening pressure on the curve, in our view."