SOUTH KOREA: Yoon Suk-yeol's Approval Drops To 19%

Aug-11 2022 14:12

The approval rating of South Korean President Yoon Suk-yeol's has dropped to 19% following a poorly received first four-months in office.

  • According to Morning Consult's Global Leader Approval Tracker, Yoon is now the least popular global leader of the 22 covered by the survey.
  • Yoon's approval rating is being buffeted by a controversial education policy roll-out which led to the resignation of Minister of Education Park Soon-ae earlier this week.
  • Hankyoreh: "The Ministry of Education ended up facing a firestorm of public opinion after announcing plans to lower the elementary school admission age by one year to students aged at least 5 years old, along with additional plans to abolish foreign language high schools."
  • Yoon has also received criticism for appearing to snub a visit from US House Speaker Nancy Pelosi (D-CA) following her Congressional delegation to Taiwan.
  • According to Morning Consult, South Koreans have the world's least favourable view of China and Yoon's decision to travel to China, to provide assurances to Beijing, at the height of tensions in the Taiwan Strait rankled with South Korean voters.
  • ROK's Joong Ang Daily: "Yoon could have saved some of his sinking approval rating if he showed up at the presidential office in Yongsan for a special meeting with a foreign guest."
  • Yoon notably told the press that he doesn't, "care about approval ratings,” but the Korea Herald cautions that the collapse of Yoon's approval, and allegations of nepotism are likely to hinder an ambitious domestic agenda which includes reform in education, pensions, and labour.
Chart 1: Yoon Suk-yeol Approval Rating Over Time, % (Morning Consult)

Historical bullets

US TSYS: Eurodollar/SOFR/Tsy Option Roundup

Jul-12 2022 13:42

Overnight through early NY session trade includes:

  • SOFR Options:
    • 7,000 SFRZ2 96.50/97.00/98.00 broken call flys
  • Eurodollar Options:
    • seller Dec 96.25 straddles 72.5 vs. 73.0 settle
    • 7,000 short Jul 96.43/96.56 put spds
    • -5,000 Dec 96.00 puts 6.0 over 96.25/96.75 call spds
    • Block, 5,000 Oct 96.00/96.25 put spds, 10.5
  • Treasury Options:
    • 2,500 wk3 TY 118.75/119.75 1x2 call spds, 11
    • Block, 10,000 FVU 113 calls, 50.5
    • Block, total 15,000 FVU 111.75 puts, 49.5-51 vs. TUU 104-29.75/0.50%
    • 5,000 TYU 117.5 puts, 60
    • 6,300 FVQ 112.75 calls, 20

CROSS ASSET: Equity futures see buying interest

Jul-12 2022 13:40
  • Nasdaq lifted in over 5k, helps Emini (ESU2) and {eu} Estoxx (VGU2), back to session high.
  • Some spillovers in USD, with AUDUSD testing that initial area at 0.6759/0.6762.
  • USDJPY test small support at 136.57.
  • EUR and GBP continue to recover.

US TSY FUTURES: BLOCK, Large 5Y Buy

Jul-12 2022 13:27

+15,167 FVU2 112-12.5 +10.25, buy through 112-12 post-time offer at 0918:51ET, after large 37.5k TUU2 Block buy. Tsy 5Y futures holding 112-12.5 last vs. overnight high of 112-16.75