Dec
11
Morgan Stanley Defends Its ‘Most Controversial’ Call on the Yield Curve
ByWhen you have one of the most contentious projections on Wall Street for the U.S. Treasury market, it’s hard to avoid the limelight.
Morgan Stanley’s forecast that the difference between yields on short- and long-dated U.S. government bonds will narrow to zero late next year is spurring strong push back even as the gap tumbles to decade lows, the bank notes.
The forecasts — on both the shape and level of the curve — have the potential to roil bond trades and the Federal Reserve’s tightening path, while raising concern for a downturn in the business cycle…
Morgan Stanley Defends Its ‘Most Controversial’ Call on the Yield Curve
