Citigroup is optimistic about the 20-year U.S. Treasury bonds, with yields possibly exceeding 5.3%

As oil prices rise, inflation concerns have emerged, leading to a significant increase in U.S. Treasury yields. Citigroup stated that for investors who can withstand volatility, the 20-year Treasury bond offers a good risk-reward ratio.

Citigroup strategist Jason Williams pointed out that if yields break above 5.3%, bearish options on U.S. Treasuries will strengthen, and policymakers may take action to curb the rise in yields.