Economic wager: A woman walks past a Citibank branch in New York. Citigroup’s strategists have written that since its trade initiation in May, supply fears have become more muted. — AFP
NEW YORK: Citigroup Inc strategists have exited a trade recommendation betting that longer-term US bonds would underperform as attacks on the Federal Reserve (Fed) intensifies, saying that a near unanimous policy decision last week reduced concerns about central bank independence ”on the margin”.
Strategists, including Dirk Willer and Adam Pickett, advised clients to “take profit” on the bet that 30-year interest-rate forwards will trail five-year tenors after the trade hit a “drawdown limit.”
