Citigroup Says Treasury Selloff Signals Bearish New Era for Risk

  • Slew of theories but bank sees post-QE normalization at work
  • ‘Much more protracted’ repricing seen, unlike any since crisis

Bond Market Finally Breaking Down, Says JPM's Michele

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For global markets, it’s back to life, back to reality.

As the Treasury selloff kicks off in earnest, Citigroup Inc. says investors should prepare for a possible “normalization’’ of risk premiums across credit and emerging markets as the era of monetary distortion unravels.