Jul
18
Morgan Stanley Says Year of the Bull Will Push U.S. Yield to 1%
By-
Hornbach is more bullish than any of 61 economists surveyed
-
Politics, productivity, policy to drive bonds: Morgan Stanley
Morgan Stanley’s Matthew Hornbach called this year’s Treasury market rally. Now he’s revising his forecasts and is more bullish than just about anyone else.
Ten-year U.S. yields will fall to 1 percent in the first quarter of 2017, according to Hornbach, the firm’s head of global interest-rate strategy in New York. None of the 61 economists surveyed by Bloomberg are as optimistic. The lowest forecast in the group is for 1.2 percent.
“The year of the bull for rates markets is set to continue with support from politics, productivity and policy,” according to a Morgan Stanley report Hornbach sent by e-mail Monday. “We expect growth to come in increasingly below consensus over the coming 12 months.”…
