SECURITY: E3 Leaders 'Urge De-Escalation' & 'Back Israel Self-Defence'

Charles Gaspariino at Fox Business posts on X: "Trade-tariff deals with Japan and South Korea said to be “close,” according to me Wall Street sources close to the White House. Timing unclear. India deal as well though it has been throttled by the tensions with Pakistan."

• US Trade Representative Jamieson Greer arrived in South Korea earlier today to attend a trade ministers' meeting of the Asia-Pacific Economic Cooperation (APEC) group. Greer is set to hold talks with Ahn Duk-geun, Seoul's minister of trade, industry and energy on the sidelines of the APEC meeting on Friday, 16 May. Korea Times reports "The two sides are expected to discuss follow-up measures to the high-level trade consultations between Korea and the United States, which were held last month in Washington." It remains to be seen how much progress can be made in the short term, given the high likelihood that liberal Democratic Party of Korea candidate Lee Jae-myung wins the South Korean presidency in the 3 June election, resulting in a change in administration from the current caretaker gov't.
• Japan has said that it will evaluate the agreement reached between the US and China before any future trade talks between Washington, D.C., and Tokyo.
• As noted on 13 May, Indian Minister of Industry Piyush Goyal visits D.C. from 17-20 May for talks with Greer and Commerce Sec Howard Lutnick in an effort to press towards a deal. 

• EU1b 5Y Fixed (May 21, 2030) at MS+65
  • Revised guidance MS+70a (+/-5) will price in range, guidance MS+80 area
  • Reoffer price 99.56 to yield 2.971%
  • Benchmark: OBL 2.4% 04/18/30 +72.6
  • Books above EU3b (including JLM interest): Leads
  • Coupon: 2.875%, annual, act/act ICMA
  • (MNI saw a good chance for a E1.0-1.5bln transaction size)
• Format: Reg S CAT1, registered, senior unsecured
• Settlement: May 21, 2025
• ISIN: XS3075496896
• Bookrunners: BNPP (B&D), GS, JPM
• FTT: 3:35pm London

Details as per Bloomberg

The DMO has announced it will be looking to sell GBP4.25bln of the 4.00% Oct-31 Gilt (ISIN: GB00BPSNBF73) at its auction next Wednesday, May 21.