Morgan Stanley: The Fed's rate cut will exceed market expectations, pushing Treasury yields lower

Odaily Planet Daily News - Vishwanath Tirupattur and Serena Tang of Morgan Stanley Research pointed out in a report that for U.S. Treasury investors, the economic slowdown and the expectation of the Federal Reserve's interest rate cuts are the most important. Morgan Stanley expects that under the influence of these factors, U.S. Treasury yields will fall, and the 10-year Treasury yield will fall to 4.00% by the end of 2025, and the 10-year Treasury yield will be slightly above 3.00% by the end of 2026. They said: "We believe that the prospect of the Fed's interest rate cuts will exceed the current market pricing, which will drive Treasury yields lower, especially starting in early 2026." (Jinshi)