Citadel Securities has abandoned its negative outlook on US Treasuries, with macro strategist Frank Flight indicating a shift to a neutral stance. The firm believes that market participants have largely accounted for the inflation risks stemming from the recent surge in oil prices.
Furthermore, Flight noted that markets are currently underestimating the potential adverse impact on global economic growth. This reassessment comes amidst the ongoing fallout from the Iran war.
The firm now suggests that the conflict, whether it prolongs or resolves quickly, has created a scenario where short-term bonds could experience gains globally. This perspective marks a significant change from their previous bearish position.
