Citigroup strategists have closed positions and are bullish on the Fed's interest rate hike next month's trading suggestions. After the release of the October CPI data, the market has fully set the price for a 25 basis point rate hike, and the probability of a 50 basis point sharp rate hike is low. The team also closed the two-year core inflation proxy short position. The Citigroup team wrote, “Driven by risk aversion in the stock market, we left the market for the December FOMC swap established last week.” Close this position and make a profit of 9 basis points. The team said, “Although Federal Reserve Governor Christopher Waller's speech and Tuesday's inflation data opened up room for interest rate hikes, the 50 basis point rate hike threshold is still very high.” In its analysis of the inflation market, Citi stated, “The inflation data was better than expected for the second month in a row, which prompted us to re-examine our original judgment that core inflation would fall steadily.” The team settled a two-year short break-even inflation rate hedged with gasoline futures. At the same time, the team maintains high confidence in the 30-year break-even inflation rate transaction, believing that long-term inflation expectations are underpriced.

Citigroup strategists have closed positions and are bullish on the Fed's interest rate hike next month's trading suggestions. After the release of the October CPI data, the market has fully set the price for a 25 basis point rate hike, and the probability of a 50 basis point sharp rate hike is low. The team also closed the two-year core inflation proxy short position. The Citigroup team wrote, “Driven by risk aversion in the stock market, we left the market for the December FOMC swap established last week.” Close this position and make a profit of 9 basis points. The team said, “Although Federal Reserve Governor Christopher Waller's speech and Tuesday's inflation data opened up room for interest rate hikes, the 50 basis point rate hike threshold is still very high.” In its analysis of the inflation market, Citi stated, “The inflation data was better than expected for the second month in a row, which prompted us to re-examine our original judgment that core inflation would fall steadily.” The team settled a two-year short break-even inflation rate hedged with gasoline futures. At the same time, the team maintains high confidence in the 30-year break-even inflation rate transaction, believing that long-term inflation expectations are underpriced.