Morgan Stanley: U.S. Treasury yields are currently too low, and future Fed rate cuts may be less than market expectations
ChainCatcher News, Morgan Stanley Investment Management stated in its outlook report that the current 10-year US Treasury yield, which is close to 4%, may be too low relative to the outlook for the US economy. The company believes that economic growth in 2026 is facing increasingly strong tailwinds. "Stronger growth combined with persistent inflation is likely to result in the Federal Reserve cutting rates less over the next 12 to 18 months than what is currently priced in by the market." Against this backdrop, Morgan Stanley Investment Management has taken an underweight position on US Treasuries.
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