SOUTH KOREA: Lee Holds First Call w/NATO Sec-Gen, Looks To Deepen Defence Links

Jul-03 10:19

(MNI) London - President Lee Jae-myung held his first phone call with NATO Secretary General Mark Rutte earlier today, where the two discussed the prospect of deepening the partnership on defence between Seoul and the Atlantic alliance, according to the president's office. As one of NATO's 'Indo-Pacific Four', alongside Japan, Australia and New Zealand, Lee was invited to the NATO summit in late June. However, he did not attend. 

  • The Quincy Institute of Responsible Statecraft posits that Lee's foreign policy "appears less attached to the idea of value-based alignment. [...] Lee has stressed that pursuing values, though important, cannot come at the cost of unconditionally subordinating South Korea’s national interests. This perspective reflects a sober recognition that South Korea shares many, but not all, interests and priorities with its U.S. ally and other like-minded democracies."
  • The prospect of South Korea moving towards NATO membership (or at least a deeper relationship) has drawn criticism from Beijing.
  • Speaking at the NATO public forum last week, Rutte said “We also see how China is reconstituting itself. We see what China, North Korea, and Iran are doing by supporting Russia’s war efforts in the war against Ukraine,” provoking Chinese Foreign Ministry spokesman Guo Jiakun to respond, "If NATO truly cares about security in Europe and the world, it should stop fueling the fire and encouraging confrontation,” calling the comments “yet another excuse by NATO to drastically increase military spending to have a presence in the Asia-Pacific region.”

Historical bullets

STIR: Mix Of Net Long Setting & Cover Seen In SOFR Futures On Monday

Jun-03 10:16

OI data points to a mix of net long setting and some form of cover in the SOFR whites on Monday. Net long setting was seemingly seen in SFRU5 & Z5, while the unchanged price status of SFRH5 & M5 makes it hard to provide any real inference when it comes to the nature of the apparent net cover seem in those contracts.

  • Net long setting then dominated in most of the reds, before a more balanced mix of net long setting and short cover became evident further out the strip.

 

02-Jun-25

30-May-25

Daily OI Change

 

Daily OI Change In Packs

SFRH5

1,068,953

1,066,311

+2,642

Whites

+2,226

SFRM5

1,452,883

1,469,931

-17,048

Reds

+36,874

SFRU5

1,119,211

1,112,571

+6,640

Greens

-6,422

SFRZ5

1,078,359

1,068,367

+9,992

Blues

-129

SFRH6

782,440

766,816

+15,624

 

 

SFRM6

767,357

751,371

+15,986

 

 

SFRU6

709,679

700,153

+9,526

 

 

SFRZ6

839,118

843,380

-4,262

 

 

SFRH7

669,181

661,066

+8,115

 

 

SFRM7

586,744

594,032

-7,288

 

 

SFRU7

415,716

421,009

-5,293

 

 

SFRZ7

418,328

420,284

-1,956

 

 

SFRH8

289,661

287,493

+2,168

 

 

SFRM8

213,789

211,083

+2,706

 

 

SFRU8

162,654

164,162

-1,508

 

 

SFRZ8

170,139

173,634

-3,495

 

 

OUTLOOK: Price Signal Summary - A Bull Cycle In S&P E-Minis Remains Intact

Jun-03 10:09
  • In the equity space, the trend condition in S&P E-Minis is unchanged and remains bullish. Recent gains delivered a print above 5993.50, the May 20 high and a bull trigger. The break highlights a resumption of the uptrend and maintains a price sequence of higher highs and higher lows. An extension would open 6057.00 next, the Mar 3 high. Key support lies at 5756.81, the 50-day EMA. A clear break of this average is required to highlight a reversal.
  • The trend cycle in EUROSTOXX 50 futures remains bullish and recent weakness appears corrective. Moving average studies are in a bull-mode position, highlighting a clear dominant uptrend. Sights are on 5516.00, the Mar 3 high and the key bull trigger. Clearance of this level would strengthen a bull theme. Key support to watch lies at 5258.36, the 50-day EMA.

FINLAND T-BILL AUCTION RESULTS: 8/11-Month RFTBs

Jun-03 10:08
Type8-month RFTB11-month RFTB
MaturityFeb 13, 2026May 13, 2026
AmountE874mlnE1.126bln
TargetE2blnShared
PreviousE1.116blnE1.317bln
Avg yield1.920%1.907%
Previous2.010%2.290%
Bid-to-cover2.14x1.67x
Previous1.77x1.4x
Previous dateMay 13, 2025Mar 11, 2025

Source: Bloomberg