Merrill 10s 224 bpts

--Merrill's 6.4 percent notes due in 2017 () pay a spread of 2.24percentage points, almost double the premium of 1.21 percentagepoints a month earlier, according to Bloomberg data and Trace --excess liquidity around 39 bil (Asset 1097 - 180 inlcuding mortgage, liability 1058 - 180 long term laiblity maturing after 2008) --CDS