[Citigroup Strategists: U.S. Treasury Yield Curve Expected to Steepen Driven by Short-Term Bonds] A report by Citigroup rate strategists indicates that the U.S. Treasury yield curve is expected to steepen, driven by short-term bonds. Due to the increased risk of rising unemployment rates caused by higher unemployment numbers or a sustained rebound in labor force participation, Citigroup leans toward a steepening bias for the bull market in 2026. The strategists believe that the market has already priced in expectations for further Federal Reserve rate cuts in the second half of this year, which will keep the middle part of the curve stable. Against the backdrop of a strong economy, a dovish Federal Reserve, and heightened supply concerns, the yield curve is expected to steepen further.