Citibank expects the yield curve to "significantly" steepen and recommends shorting longer-term US Treasuries.

According to the Zhitong Finance and Economics APP, Citibank strategists recommend betting on the poor performance of longer-term US bonds, citing the risk of what they call the "expensive" US fiscal bill. Strategists led by Dirk Willer suggest that investors prepare for the widening of the spread between 5-year and 30-year US Treasury bonds by using six-month forward contracts, with a target rate increase from the current 40 basis points to 90 basis points.