Citi are of the view that "for the medium to.....>

US: Citi are of the view that "for the medium to long term, we continue to

believe that with the US embarking on late cycle fiscal stimulus, it needs to

offer investors a discount on its assets - via higher yields, a weaker currency,

or both. With yields doing the "heavy lifting" lately, stretched USD shorts have

room to unwind and fuel a rally in the greenback. With increased supply

upcoming, yields likely rise further still as tapered LSAPs in the EA and Japan

mean less funding is likely to be forthcoming for larger US fiscal deficits as

local duration shortages are slowly relieved. But a flatter curve/higher

yield/higher oil price combination may slow growth and yield upside at some

point bringing the $ back into play as a source of discount to foreigners

financing US debt."