According to Jinshi, Citi strategists said that given that the European Central Bank seems more reluctant to cut interest rates than the Federal Reserve, the gap between U.S. and German government bond yields may narrow further. "Given the central bank's relevant remarks and data momentum, we suspect that the ECB will remain hawkish for some time," Citigroup strategists wrote. "A heated debate in early 2024 is whether the Fed or the ECB will cut interest rates first. The Fed is ahead of the ECB in front-end pricing, but the gap is not big. There is actually no difference in the money market's pricing of interest rate cuts in the United States and Europe this year. The two regions are expected to cut interest rates by a total of about 140 basis points, with the Fed expected to cut interest rates by 16 basis points by March and the ECB to cut interest rates by 10 basis points."