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NYCB Worry Doing The Rounds, Off London Lows

US TSYS

Tsys unwind the initial London move lower.

  • TYM4 +0-02 at 110-16 (110-08 to -17 range so far).
  • Initial support: Feb 23 low (109-25+), initial resistance: 20-day EMA (110-25+).
  • Cash Tsy yields are 0.5-1.5bp lower across the curve.
  • NYCB-related worry is present after the bank highlighted material weakness re: internal controls, missed the deadline re: filing its annual report and changed its CEO late on Thursday.
  • Pre-market indications for the name have extended yesterday’s post-market weakness (indicated ~30% weaker).
  • Our credit team believes that most of the issues appear to be name-specific, not systemic. That doesn’t rule out pressure in related/linked names in NY equity trade.
  • Elsewhere, final Eurozone manufacturing PMI was a little firmer than expected, although still contractionary.
  • Eurozone CPI data was a little firmer than consensus, but in line with the tracking provided by national releases, limiting any sell off.
  • The ISM manufacturing survey headlines the U.S. calendar today. Final PMIs & UoM sentiment readings are also due.
  • The Fedspeak slate is also heavy, with no less than 8 scheduled appearances noted. The highlight will likely be the Waller-Logan discussion centred on QT.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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