Citi summarizes its market views for the rest of the year.
"Our views for the rest of 2021 remain unchanged – calling for further upside in risk assets, pro-cyclical currencies, and downside in the FX funders," Citi notes.
"Though the major central banks are all moving toward tapering, with the ECB the latest to join the pack, the size of asset purchases will still remain very large in Q4 amid a global recovery. In addition, financial conditions remain extraordinarily loose. Despite very large Treasury supply last week, the market absorbed it easily; with inflation expectations moving higher again, in particular in the front end, real yields have remained at very low levels, supporting activity," Citi adds.