Citigroup Recommends Increased Bets Against Long-Term Bonds Amid Fed Independence Risks

Reported about 9 hours ago

Citigroup strategists suggest investors increase their positions against long-term US bonds due to concerns that President Trump may undermine the Federal Reserve's independence. They anticipate a widening yield gap between 30-year and 5-year Treasuries, leading to a steeper yield curve, as the risk of political influence on the Fed rises. The strategists have initiated this 'curve steepener' trade amidst fears that Trump's actions could increase inflation risks.

Source: YAHOO

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