0532 GMT - Citi raises its U.S. Treasury yield forecasts following the Federal Reserve's September interest-rate hike. It now expects the 10-year Treasury yield at 5.0% at year-end, strategist Jason Williams says in a note. "Typically, we are slow moving with our forecasts to limit chasing price action, but the world is now fundamentally different today compared to the July FOMC," he says. Citi assumes Fed rate hike pricing will remain until year-over-year core PCE starts to normalize next year, Williams says. Citi expects oil prices and the path of core PCE to drive the rates market for the remainder of this year, neither of which paints a good picture for yields in the short-run.
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