Morgan Stanley currently holds a neutral stance on U.S. Treasury bonds

Odaily Morgan Stanley's strategists stated in a report that they currently recommend maintaining a neutral strategy towards U.S. Treasury bonds until the impact of the Middle East conflict on the economy and the Federal Reserve's interest rate path becomes clearer. They said: "We prefer to maintain a neutral stance on U.S. Treasury bonds until we have a clearer understanding of the impact of the Iran conflict on Federal Reserve policy and (equally important) fiscal policy." They also mentioned that speculation about more fiscal stimulus measures might also explain why U.S. Treasury bonds have not reacted to risk aversion as expected. They said: "Of course, the absence of a dovish Federal Reserve also does not favor using U.S. Treasury bonds as a hedge against higher-risk assets." (Jin Shi)