Citigroup's global macro strategy team has recommended clients exit the "Trump trade" as market dynamics shift, indicating a potential lack of investment return.
The gap between five-year and 30-year Treasury yields has increased to 38 basis points, underscoring the fading viability of the previously favored steepener trade.
Willer noted that the current political landscape and economic indicators suggest aggressive easing by the Federal Reserve is less likely, further complicating election-driven investment strategies.
As Trump's election odds continue to decline, Citigroup has positioned itself conservatively, affirming that election-based trades have diminished and will remain lesser prior to upcoming policy meetings.
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