2.2 Pursuing portfolio income with short-term bonds Yields have risen sharply across 2022. This BRUCE HARRIS has created income-seeking opportunities Head of Global Fixed Income Strategy in US dollar short-term issues. KRIS XIPPOLITOS Global Fixed Income ƒ Fed tightening has driven bond prices down sharply, Portfolio Strategist, driving short-term rates to their highest since 2008 Citi Investment Management ƒ We believe the peak of the Fed hiking cycle may be coming into view ƒ As such, 2023 could bring opportunities to add shorter term, less volatile US-denominated bonds to portfolios ƒ Potential opportunities include shorter term US Treasuries, investment-grade credit, munis and preferred securities Citi Global Wealth PUTTiNG CASH To worK iN A HiGHer iNTereST rATe eNviroNMeNT | | 33 Investments