Amid a revival of trade fears, Citi’s overweight stance on fixed-income quality may help navigate more volatile mid-year markets and potentially strengthening risk-adjusted returns.
A key slice of the Treasuries yield curve became the most inverted since 2007. Additionally, long-term yields on government bonds around the world are hitting some of their lowest levels in recent years.
With US rates falling at the long and short end of the curve, Citi analysts see growing relative value in intermediate duration US investment grade corporate debt.
