"Preparing for Fed Rate Reversals: Citigroup's Advice to Bond Traders"

The possibility of further rate hikes by the Federal Reserve has become uncertain following a strong trend in economic data, with the recent CPI report indicating a potential delay in rate cuts until June. The impact on 10-year yields would depend on the Fed's approach, with a determination to crush inflation likely leading to lower yields due to a rush into long-dated bonds, while a delayed response to inflation could result in a credibility problem and higher inflation. Overall, the author suggests a preference for owning long-dated bonds if the Fed takes decisive action against inflation.