Agency mREITs continue to merit caution even after big declines, says Citi. Even if the scare of higher long-term rates may be priced in, around the corner could be worries of short-term rate hikes (and a flatter yield curve). Citi expects Q2 reported book values to be off 10-15% and asset sales combined with increased hedging to negatively impact future earnings. Price targets are cut at AGNC and NLY. Among other agency players: ARR, HTS, CYS, CMO, AMTG.