Citi Private Bank

Browser Requirement

To best view Citi Private Bank's site and for a better overall experience, please update your browser to a newer version using the links below.

System Outage
Citi Private Bank logo

Language Notification

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Global-Fixed-Income-Strategy-Reassessing-key-US-rate-views

Perspectives

Global Fixed Income Strategy: Reassessing key US rate views

Kris Xippolitos

By Kris Xippolitos

Head - Fixed Income Strategy

February 26, 2020Posted InFixed Income and Investment Strategy

The risk that an acceleration in the COVID-19 (coronavirus) outbreak can significantly affect global growth has increased meaningfully. Though still unlikely, US recession risks have risen, the yield curve has inverted and markets have priced in two full rate cuts for this year.

Fed policy may ultimately be dictated by the path of the virus outbreak, which is unpredictable. However, we believe the committee may take the path of least resistance and follow market expectations. Whether the Fed cuts now, later or never, short-term US rates are likely to remain low (or move lower). With the US yield curve inverted, hedging floating-rate liabilities beyond the short-term is more attractive.

In regard to 10-year Treasury yields, if the virus cannot be contained, the recovery from last year’s trade shock will be derailed. This could lead to a weakening macro outlook, downward earnings revisions and higher equity volatility. This would likely intensify the demand for safe haven assets. If the flu pandemic intensifies to the US, we would not rule out the possibility for 10-year UST yields to fall to 1.25%, or lower.

We continue to favor having exposures to longer duration high quality bonds, primarily in US IG corporates. In high yield, pressure may continue if virus fears accelerate. We prefer to maintain an up-in-quality bias in senior secured bank loan debt, which tends to be better protected to the downside. We see consumer-based asset-backed securities as attractive way to diversify portfolios and enhance yield. Non-agency residential mortgage-backed bonds remain our preferred market. We also remain overweight external emerging market debt and continue to find value in longer-dated municipals, for US-based investors.

Read Global Fixed Income Strategy: Reassessing key US rate views