Bonds
Citigroup Calls Time on Popular ‘Trump Trade’ in Bond Market
- Curve steepener trade popularity soared on Biden’s debate flub
- Trade loses momentum as Trump’s polling slips, less dovish Fed
Citigroup unwound the remainder of the trade as Trump’s odds of winning the Nov. 5 election in the betting market slipped following Kamala Harris’s replacement of Biden as the Democratic nominee.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
Citigroup Inc.’s strategists have abandoned a once-popular “Trump trade.”
The bank’s global macro strategy team on Friday recommended clients exit any remaining bets that 30-year Treasuries will underperform five-year notes, after taking profit on half of the position earlier this month. The gap between five-year and 30-year yields has increased to 38 basis points, from around 20 basis points when Citigroup first recommended the trade.