Citi recommends rotating from US to UK stocks

But there was a caveat.

While rising 10-year Treasury yields should drive investors into so-called 'value' stocks over 'growth' names, "we are not

convinced that this marks the beginning of a multi-year shift back towards Value away from Growth," Citi added.

"We have neutralised our exposure to Growth in our core equity strategy but have not shifted wholesale back towards Value."

Nonetheless, should bond yields rose, then the above rotation strategy should outperform "strongly" with cyclicals and defensives outpacing their growth rivals.

In the emerging markets space, Brazil and Russia were expected to pace gains.

Citi's bond strategists expected the yield on the 10-year US Treasury note to reach 1.25%, which as of 1238 GMt was three basis points higher at 0.92%.