Citi Wealth Insights

Citi analysts believe that selective regional markets (US Investment Grade, US High Yield and Emerging Market Debt) still offer value.

The spread between 3- and 5-year yields fell to -0.7 bps on Monday, dropping below zero for the first time in more than a decade.

To take advantage of the growing opportunity created by higher US interest rates, Citi analysts have made slight adjustments to their weighting on bonds and equities.

Short-term US rates are expected to rise, while long-term rates remain subjected to both bullish and bearish factors

Citi analysts favor selective opportunities in Emerging Market Debt, US High Yield and US Investment Grade Bonds.

In spite of Q1 2018 stock market volatility, global economic fundamentals remain strong.