Citi flags bond sell-off risk to equity bull market as Fed hike looms

Citigroup economists expect the Fed to raise rates today, the first hike in three years, and warn that tighter policy from major central banks is amplifying concerns over long-term bond yields. The bank is analyzing historical stock performance around Fed hiking cycles and comparable bond sell-offs to assess whether higher yields could derail the current bull market. The outcome hinges on the magnitude of the hike and forward guidance, which remain uncertain.