German Chancellor MERZ will convene multiple leaders to draft a NATO strategy aimed at courting Trump’s support; he will also chair an E5 leaders’ meeting this month to prepare for the upcoming NATO summit.

On June 1 the Israeli Defense Forces warned residents of Dahiyeh, a southern suburb of Beirut, to evacuate and said it would strike targets in the area if Hezbollah continues firing rockets at Israeli towns. The IDF said a suspected Hezbollah-launched drone struck the northern Israeli town of Metula on June 1. Earlier the IDF said three rockets were fired from Lebanon into northern Israel and were intercepted by Israeli air-defence systems; the attacks caused no casualties.

2-year government bond futures (TS main contract) down 0.02%; 5-year (TF main) unchanged; 10-year (T main) up 0.04%; 30-year (TL main) up 0.28%.