Citi: Maintains View of Steepening US Treasury Yield Curve
Jinse Finance reported that Citi Research strategists stated in a report that their core view on U.S. Treasuries remains unchanged after last Friday's U.S. non-farm payroll data came in below expectations. They expect the yield curve between 5-year and 30-year Treasuries to steepen further, while the Federal Reserve will implement lower interest rates in 2026 and 2027. They pointed out that the risk of the 5/30-year Treasury yield curve steepening lies in the possibility that if the 30-year Treasury yield rises above 5% amid large-scale sell-offs, it could attract demand to return. The strategists believe that the market still underestimates the risk of the 5-year Treasury driving a significant steepening of the 5/30-year yield curve. (Golden Ten Data)
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