Morgan Stanley Investment Management said that compared to the outlook for the US economy, the 10-year US Treasury yield, which is currently around 4%, may be too low. The investment management company said in an outlook report that it is expected that increasing favorable factors will support the economy to accelerate again in 2026. The company said, “The combination of stronger growth and sticky inflation may cause the Fed to cut interest rates less often than the current market expects in the next 12-18 months. “This background has led Morgan Stanley Investment Management to reduce its holdings of US Treasury bonds. Earlier in the day, the 10-year US Treasury yield rose to 4.209%, the highest level since early September, according to Tradeweb data.

Morgan Stanley Investment Management said that compared to the outlook for the US economy, the 10-year US Treasury yield, which is currently around 4%, may be too low. The investment management company said in an outlook report that it is expected that increasing favorable factors will support the economy to accelerate again in 2026. The company said, “The combination of stronger growth and sticky inflation may cause the Fed to cut interest rates less often than the current market expects in the next 12-18 months. “This background has led Morgan Stanley Investment Management to reduce its holdings of US Treasury bonds. Earlier in the day, the 10-year US Treasury yield rose to 4.209%, the highest level since early September, according to Tradeweb data.