May 29th, 2008 2:15 pm | by John Jansen |

Swap spreads are about a basis point wider across the yield curve today. There was significant paying early in the day by mortgage servicers and other hedgers. Additionally, there was outright paying by hot money specs that chose swaps as a vehicle to short the market in advance of the Treasury supply.With that supply out of the way the entire interest rate complex  has rebounded from the worst levels of the day and the market seems to have achieved a fragile and tenuous equilibrium.

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