0526 GMT - Citi confirms its neutral view on U.S. Treasurys despite last week's strong 10-year auction, finding little evidence that two consecutive strong 10-year auctions mark an end of the current mini-buyers' strike, strategist Jason Williams says in a note. "We remain neutral on the curve, mostly due to our expectation that Treasury Secretary Bessent is likely to reduce the auction sizes for 20s and 30s at the November 4th refunding," he says. Citi's base case is a $3 billion reduction per auction, which would be funded by additional T-bill issuance, he says. Ahead of the coming CPI report, Citi remains positioned for unchanged Fed interest rates at the October meeting. Citi also continues to expect the 10- to 20-year Treasury curve to steepen.
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