Citi strategist Jason Williams noted in a research report that the US Treasury 5-30 year curve presents opportunities for steepening. Compared to the potential spread loss risks facing 2-10 year bond steepening trades, the 5-30 year curve offers "more cost-effective carry."

This assessment incorporates Citi's phased outlook that two-year Treasury yields have limited room for further decline in the near term, unless non-farm payroll data shows weakness. Williams emphasized that the current market environment provides supportive conditions for long-end rate widening.