Citigroup Rates Desk Says Market Is Too Calm About US Inflation

Markets are complacent on the outlook for US inflation, making trades that pay out if price pressures climb look attractive, according to the rates desk at Citigroup Inc.

Investors may be underestimating the resilience of the US consumer and market expectations for inflation are likely to be revised slightly higher, said Benjamin Wiltshire, a rates trading desk strategist at the US bank.