Morgan Stanley suggests going long on US Treasury bonds, betting on their outperformance as inflation-hedging bonds.

Golden Finance reported that Morgan Stanley strategists recommend clients to short 10-year Treasury Inflation-Protected Securities (TIPS) and buy 10-year US Treasury bonds in order to profit from the potential reversal of inflation cooling and the balance of profit and loss. Strategists like Aryaman Singh suggest betting that the 10-year breakeven inflation rate will fall from the current level of around 2.4% to 2.15%, with a stop loss target set at 2.5%. They expect that as inflation cools, the decline in Treasury bond yields will be faster than the decline in TIPS yields.
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Kenji_gohvip
· 2025-01-28 17:44
that's good..good news
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