Morgan Stanley Predicts Limited Rate Cuts Amid Economic Growth

According to BlockBeats, Morgan Stanley Investment Management has released a report indicating that the current yield on 10-year U.S. Treasury bonds, nearing 4%, may be undervalued given the outlook for the U.S. economy. The firm anticipates that economic growth will face increasingly favorable conditions by 2026. The report suggests that stronger growth combined with persistent inflation is likely to result in the Federal Reserve implementing fewer interest rate cuts over the next 12 to 18 months than the market currently anticipates. In this context, Morgan Stanley Investment Management has adopted an underweight position on U.S. Treasury bonds.