Morgan Stanley: The Federal Reserve's interest rate cut will exceed market expectations, driving down the yield of treasury bond bonds

Odaily Planet Daily News Vishwanath Tirupatur and Serena Tang of Morgan Stanley Research pointed out in the report that for US treasury bond investors, the economic slowdown and the expectation of the Federal Reserve to cut interest rates are the most important. Morgan Stanley expects that under the influence of these factors, the yield of US treasury bond bonds will decline. By the end of 2025, the yield of 10-year treasury bond will decline to 4.00%, and by the end of 2026, the yield of 10-year treasury bond will be slightly higher than 3.00%. They said: "We believe that the prospect of the Federal Reserve's interest rate cut will exceed the current market pricing, which will push down the yield of treasury bond bonds, especially from the beginning of 2026." (Gold Ten)