Morgan Stanley Raises 10-Year U.S. Treasury Yield Forecast -- Market Talk

Dow Jones04-22

0553 GMT - Morgan Stanley Research raises its forecast for the year-end level of 10-year U.S. Treasury yields, its analysts say in a note. They now expect the 10-year yield to end the year at 4.15%, 20 basis points higher than their previous forecast of 3.95%, they say in a note. Morgan Stanley's economics team now expects Federal Reserve interest-rate cuts to start in July, with three cuts in 2024, followed by four in the first four FOMC meetings of 2025. They see the two-year U.S. Treasury yield at 4.30% by the end of 2024. Their forecast sees the 2-10-year maturity segment of the U.S. Treasury curve remaining inverse this year--with shorter-dated bond yields being higher than their longer-dated peers. The two-year U.S. Treasury yield last trades at 5.001%, while the 10-year yield is trading at 4.655%, according to Tradeweb. (emese.bartha@wsj.com)

 

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April 22, 2024 01:54 ET (05:54 GMT)

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