New York is the most expensive of U.S. cities.
The bank warned employees that trips to this year's Olympic city will be closely monitored.
Traders are currently pricing in about 140 basis points of easing this year.
The bonuses raise questions about top executives' level of commitment, the analyst said.
Citigroup is jostling with its big rivals for a larger slice of wealth revenues in Asia Pacific.
The U.S. bank has a lot of revenue riding on maintaining cordial relations with China.
An eventual rise in interest rates could "take some of the exuberance out of certain markets,” he said.
New York is the only North American city to make the top 10 most expensive places to live list.
Shanghai has overtaken Hong Kong as the priciest city in the world.
Many companies will need to restructure via the private credit market, says BlackRock.